How this house flipping profit calculator works
Most flip profit calculators ask you to guess a loan rate and points. This one prices the loan for you. It sizes a fix and flip loan for your deal using current lending rules, then runs the full profit math for each of the three rate and points combinations a lender would offer. You see what the deal actually nets after financing, not just the gap between the sale price and your costs.
For each financing option you get:
- Net profit after purchase, rehab, closing costs, points, interest, holding and selling costs
- Total cash invested, including the down payment and any rehab the loan doesn't cover
- Return on cash, annualized return, and profit as a share of the sale price
The flip profit formula
Net profit = sale price − purchase price − rehab − buying costs − financing costs − holding costs − selling costs. Buying costs are title, appraisal, insurance and other third-party fees at closing. Financing costs are the origination points plus interest. Holding costs are taxes, insurance and utilities while you own the house. Selling costs are commissions, transfer tax and the seller's closing costs.
Interest is the cost most flippers underestimate. On a fix and flip loan the purchase advance accrues interest from day one, but rehab money is held back and released in draws as work is finished. You only pay interest on what has been drawn. The calculator assumes draws are spread evenly across the hold, so on average about half of the rehab holdback is outstanding. If your contractor front-loads the work, interest will run a little higher.
A worked example
Say you buy a house for $300,000, put $60,000 into it, and sell for $480,000 six months later with 8% selling costs. Selling costs alone are $38,400. Add $500 a month of taxes, insurance and utilities ($3,000), about 1% in buy-side closing costs, two to two and a half points on the loan, and six months of interest. Run those numbers above and the net profit lands far below the $120,000 "spread" between the sale price and purchase plus rehab. That gap is why experienced flippers price every cost before they make an offer.
Points or rate: which option makes more money?
Paying more points buys a lower rate. On a short hold, the extra points usually cost more than the interest they save, so the lowest-points option often nets the most. On longer holds, the lower rate can win. The calculator highlights whichever option produces the highest profit for your hold period, so try a 4-month and a 10-month hold to see where the line crosses.
Use it with the 70% rule
The 70% rule calculator gives you a quick maximum offer from the ARV and rehab budget. This calculator tells you whether the deal still works once real financing, holding and selling costs are counted. Use the rule to screen deals, then run the survivors through the profit calculator before you sign. When a deal pencils out, you can request a term sheet to confirm the loan terms.
Related calculators
- Fix and flip loan calculator: loan amount, rate options and cash to close
- 70% rule calculator: maximum offer from ARV and rehab
- Hard money payment calculator: monthly payments on a loan you were quoted
Frequently asked questions
How do you calculate profit on a house flip?
Start with the sale price (the after-repair value) and subtract everything you spend: purchase price, rehab, buy-side closing costs, loan points, loan interest, holding costs such as taxes, insurance and utilities, and selling costs such as agent commissions and transfer taxes. What is left is your net profit. This calculator does that subtraction for each financing option.
What is a good ROI on a fix and flip?
Many investors look for a net profit of at least 10–15% of the sale price, or $25,000–$30,000 on a typical single-family flip, whichever is higher. Return on cash invested is usually much higher than that because a loan covers most of the cost. Thin deals leave no room for a rehab overrun or a slow sale.
Why is ROI on cash higher than profit margin?
Profit margin divides net profit by the sale price. ROI divides it by the cash you actually put in: down payment, points, closing costs, any rehab the loan does not cover, and carrying costs. With a fix and flip loan funding most of the purchase and rehab, your cash is a fraction of the project cost, so the same profit is a larger return on that cash.
How much do selling costs eat into a flip?
Usually 6–10% of the sale price. Agent commissions are the largest piece, followed by transfer taxes, title and escrow fees, and any concessions you give the buyer. On a $400,000 sale, 8% is $32,000, often more than the loan interest on the whole project.
How long should I assume a flip takes?
Add the rehab time, the time on market, and about 30 days to close the sale. Cosmetic flips often run 4–6 months from purchase to sale; heavier rehabs take 8–12 months. Every extra month adds interest and holding costs, so test a longer hold to see how sensitive your profit is.
Where do the loan numbers come from?
The financing is priced on the server using current fix and flip lending rules: your experience, credit score, property type, location, rehab size and loan amount set the leverage, rate and points. The loan term is the shortest standard term (9, 12 or 18 months) that covers your hold period.
Estimates are for planning only and are not a commitment to lend.