Fix-and-Flip Profit Calculator
Calculate fix-and-flip profit and return on investment
Enter your purchase price, renovation and holding costs, and the selling price to calculate your total profit, ROI, and annualised return on a fix-and-flip deal.
How to evaluate a fix-and-flip deal before you commit
Fix-and-flip investing involves purchasing a property in need of work, renovating it to increase its value, and then selling it for a profit within a relatively short timeframe. Unlike long-term rental investing, the profit horizon is measured in months rather than years, which makes accurate upfront analysis especially important. A deal that looks attractive on purchase price can quickly erode if renovation costs run over, the holding period extends, or the sale price falls short of expectations.
This calculator takes the five key cost components of any flip and combines them to show profit and return. Total cost includes the purchase price, the full renovation budget, and the holding costs accumulated over the holding period. Holding costs cover recurring expenses you pay while you own the property but have not yet sold it. These typically include mortgage or bridging finance interest, council rates, insurance premiums, utilities, and security. Even on a six-month flip at a modest monthly holding cost, this figure can easily reach ten to fifteen thousand depending on the deal size.
Net proceeds is the amount you actually receive from the sale after the agent commission is deducted. In most markets, seller agent commissions range from 2% to 6% of the sale price and are negotiated before listing. Reducing commission is one lever available to flippers, though lower commissions sometimes correlate with less agent effort on marketing and buyer negotiations. Using a realistic commission rate in this calculator avoids overestimating what you will take home at settlement.
What ROI and annualised ROI mean for flip investors
Return on investment is calculated as profit divided by total cost, expressed as a percentage. It tells you how much you made relative to what you put in. A 20% ROI on a flip sounds strong in isolation, but the holding period matters enormously. If you achieved 20% ROI in four months, that is an exceptional outcome. If it took eighteen months, the annualised return may look much less impressive compared to other asset classes or investment alternatives.
Annualised ROI adjusts for the holding period by scaling the simple ROI to a full year equivalent. The formula multiplies the ROI by 12 divided by the number of months held. This makes it easier to compare flips of different durations against each other and against benchmarks like stock market or savings returns. A three-month deal with a 12% simple ROI annualises to 48%, which is a very different picture from an eighteen-month deal with the same simple ROI annualising to just 8%.
When evaluating whether a flip is worth pursuing, most experienced investors set a minimum acceptable ROI before committing capital. Common thresholds vary but many aim for at least 15% to 20% simple ROI per deal, which provides enough margin to absorb small overruns or a sale price slightly below target. If the projected ROI is tight, consider whether the assumptions are realistic. Overestimating the sale price and underestimating renovation costs are the two most common errors in flip analysis.
Practical tips for more accurate flip projections
For the purchase price, use the agreed or expected acquisition cost including any buyer's legal fees and transfer costs, not just the listed price. For renovation cost, get quotes from contractors rather than estimating, and add a contingency of at least 15% to 20% for unexpected items. Renovation overruns are so common they should be treated as near-certain on any substantial project.
For the holding period, use a realistic estimate rather than an optimistic one. Factor in time for permits if structural work is involved, delays in contractor scheduling, and the marketing period after renovation is complete. In most markets, properties take four to twelve weeks to sell once listed, so add that to your renovation timeline when estimating total months held.
For the selling price, anchor on comparable recent sales of similar properties in the same area and condition, not asking prices. Buyers negotiate, so reduce your comparable by a small margin to reflect realistic sale conditions. If market conditions in your area are softening, apply a more conservative haircut to your comparable sale price estimate before entering it here.
