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FinToolSuite
Updated April 20, 2026 · Real Estate · Educational use only ·

Property Flip Profit Calculator

Comprehensive flip profit.

Calculate property flip profit including financing costs, holding costs, and selling fees across the duration of the project.

What this tool does

This calculator models the financial outcome of a property flip by comparing your expected sale proceeds against all costs incurred. It accounts for the purchase price, renovation expenses, monthly carrying costs over your holding period, and selling fees to estimate net profit and annualised return on investment. The result shows how much profit remains after all outlays, and expresses that return as an annualised figure to allow comparison across projects with different timelines. Purchase price, rehab cost, and expected sale price drive the outcome most significantly. A typical scenario might involve estimating returns on a residential property purchased below market, renovated, and sold within 6–18 months. Note that the calculation assumes costs and timelines as you input them; actual results depend on market conditions, project delays, and unforeseen expenses. This tool is for financial illustration only.


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Formula Used
Sale price
Selling %
Purchase
Rehab
Holding/month
Financing

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

Comprehensive property flip profit calculator including all flip-specific costs: financing (hard money 10-15% rates), holding costs (taxes, insurance, utilities during rehab), and selling costs. 150k purchase + 40k rehab + 6k holding (12 months × 500) + 8k financing = 204k total cost. 250k sale, 17.5k selling costs (7%) = 232.5k net = 28.5k profit (14% ROI on cost).

Annualised ROI matters more than absolute ROI for flips. 28.5k profit on 12-month flip = 14% annualised. 28.5k profit on 6-month flip = 28% annualised. Faster turnover = better capital utilisation. Speed matters - target 4-8 month total project duration. Beyond 12 months: holding costs eat profit, opportunity cost of capital tied up.

Flip risk factors not in basic math: (1) ARV doesn't materialise (overpriced for area), (2) Rehab budget overrun (always 20-30% buffer), (3) Permit delays adding holding costs, (4) Market shift during rehab (interest rates, inventory levels), (5) Seasonal selling delays. Use 70% rule: max purchase = (ARV × 0.70) - rehab. Builds in margin for surprises. Most failed flips: optimistic assumptions on ARV and rehab budget.

A worked example

Try the defaults: purchase price of 150,000, rehab cost of 40,000, monthly holding costs of 500, total hold period of 12. The tool returns 28,500.00. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Purchase Price, Rehab Cost, Monthly Holding Costs, Total Hold Period (months), and Expected Sale Price (ARV). Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

The formula behind this

Sale net of selling costs minus all input costs. Annualised ROI scales by hold months. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

Using this well

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. The number represents one scenario rather than a forecast.

Example Scenario

££150,000£40,000£500/mo×12 vs ££250,000 = 28,500.00.

Inputs

Purchase Price:£150,000
Rehab Cost:£40,000
Monthly Holding Costs:£500
Total Hold Period (months):12
Expected Sale Price (ARV):£250,000
Selling Costs %:7
Total Financing Costs:£8,000
Expected Result28,500.00

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

The calculator computes flip profit by taking the expected sale price, applying the selling costs percentage as a deduction, then subtracting the purchase price, rehabilitation costs, total financing costs, and the product of monthly holding costs multiplied by the total hold period in months. This models profit as the difference between net sale proceeds and all capital and carrying expenses combined. The calculation assumes a linear accumulation of holding costs over time, treats all costs as occurring at known amounts with no contingency for cost overruns, and does not account for transaction timing, market volatility, tax implications, or the time value of money beyond the holding period itself. Results reflect a simplified scenario and should be treated as an estimate rather than a definitive outcome.

Frequently Asked Questions

Realistic flip ROI?
Industry target: 15-25% on total cost. Below 10%: not worth time/risk. Above 30%: exceptional or you're missing costs. Annualised matters more - 15% on 6-month flip = 30% annualised (good). 15% on 18-month flip = 10% annualised (poor).
Hard money vs traditional finance?
Hard money: 10-15% interest, 12-18 month term, 65-75% LTV, fast close. Right for distressed property purchase + rehab phase. Traditional bank: lower rate (4-7%) but won't fund significant rehab. Sequence: hard money for purchase + rehab → traditional refi (BRRRR) or sale (flip).
Common cost overruns?
Hidden structural issues (foundation, roof, electrical, plumbing). Permit delays. Material price increases. Contractor disputes. Tenant removal (if occupied). Surprise mould/asbestos. Always budget 20-30% rehab buffer. 40k estimated → assume 52k actual.
Speed vs quality tradeoff?
Faster flip = lower carrying costs, better annualised ROI, but rushing rehab compromises quality and ARV. 6-month flip with rushed rehab might sell for 240k vs 8-month flip with quality work selling for 260k. Total profit higher with quality despite extra carrying costs. Find balance per market.

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