Our property flip profit calculator analyzes all costs and revenues in a fix-and-flip investment to determine net profit and ROI. The calculation applies real estate investment principles including the 70% rule to evaluate flip viability and profitability.

Mathematical Foundation

Property flip profit analysis is based on real estate investment mathematics and the fundamental income property equation: profit equals income minus expenses. Unlike rental properties with ongoing income, flips are one-time capital gain transactions. The 70% rule provides a quick screening metric derived from typical cost structures: 30% margin covers selling costs (~10%), holding costs (~5%), profit (~15%), and contingency buffer. ROI calculation shows return efficiency, while profit margin indicates pricing power and market positioning.

• Total investment includes purchase, renovation, holding, and buying closing costs
• ARV accuracy is critical—overestimating eliminates profit quickly
• The 70% rule provides built-in safety margin for unexpected expenses
• ROI of 15-25% is typical for successful flips
• Holding costs accumulate monthly—speed increases profitability
• Agent commission and selling closing costs reduce net proceeds significantly

Sources & References