Fix and Flip Profit Calculator

How it is calculated

The tool models an all-cash flip. total invested = purchase + rehab + holding + selling, so selling costs are counted as part of the money put in. Then profit = sale price − total invested and ROI = profit ÷ total invested × 100. It also shows the three non-purchase costs added together. All five fields are dollar amounts, not percentages, so an agent commission of 6% must first be converted to dollars. The four cost fields must be filled in (type 0 where something does not apply) and none may be negative; the sale price must be above zero. If the total invested is zero the tool returns nothing. A loss prints with the sign first, for example -$42,000.00. There are no loan, interest or tax inputs: financing costs have to be entered inside holding costs, and income tax is not deducted.

Common mistakes

• Entering selling costs as a percentage (6) rather than dollars. A 6% commission and closing costs on a $290,000 sale are thousands of dollars, not 6.
• Forgetting loan interest and points. This tool has no loan field, so add the financing cost into holding costs or the profit will be overstated.
• Leaving a field empty when the cost is zero, or entering 0 as the sale price. Both give no result; type 0 for a cost that does not apply and a real expected sale price.
• Using the listing price as the sale price. Use what comparable renovated homes actually sold for, or the profit is optimistic.
• Reading ROI as an annual return. It is the return over the whole project, whether that took 3 months or 12.