Calculate fix-and-flip profit from all-in costs
Project cost before sale combines purchase price, buyer acquisition closing costs, rehab, holding, and financing costs. Selling costs are then added as a percentage of the entered gross sale price plus a fixed exit amount. Total cost is the sum of both groups.
Profit equals gross sale price minus total cost, while ROI divides profit by that same total cost. A spread between purchase and resale prices can therefore coexist with a project loss once renovation, time, financing, and both kinds of transaction cost are included.
Match acquisition and rehab costs to the exit condition
Acquisition closing costs are separate from price so title, escrow, recording, legal work, inspections, and similar buyer costs are visible. The rehab budget should match the completed condition assumed in the resale price and include labor, materials, permits, cleanup, and contingency when applicable.
Support the gross sale price with comparable-sales or appraisal work and reconcile differences in location, size, condition, features, and timing. The calculator does not find comparables, inspect the property, validate the budget, or forecast the eventual buyer price.
Keep holding and financing assumptions on one timeline
Holding costs should cover the full period from acquisition through resale, not only the construction months. Property charges, utilities, insurance, maintenance, and an extended marketing period can continue after physical work is complete. Compare multiple hold lengths by changing the aggregate amount.
Financing costs are one total rather than a draw-by-draw loan schedule. Use proposed loan terms to assemble interest, points, and lender fees, then keep overlapping charges out of acquisition, holding, and exit fields. Borrowed principal itself is not added as an expense in this model.
Separate percentage and fixed exit costs
Percentage selling costs scale with gross sale price and can represent brokerage or concessions. Fixed exit costs cover amounts that do not scale with price. Their sum is deducted from the gross sale price to produce net sale proceeds and is also included in total project cost.
Do not place one charge in both fields. Test a lower gross sale price with the same selling-cost rate, then separately test a delayed exit through larger holding and financing totals. Those scenarios distinguish pricing risk from timeline and cost risk.
Understand the algebraic break-even sale price
Break-even must account for a selling cost that changes with the sale price itself. The calculator therefore divides pre-sale cost plus fixed exit costs by one minus the selling-cost rate, instead of merely adding the rate to today’s cost. At a 100% rate, recovery is impossible unless all fixed costs are zero, so the result can be unavailable.
Break-even is an arithmetic threshold rather than a predicted value or target. Verify title, permits, construction scope, financing, insurance, taxes, comparable evidence, and disposition assumptions before committing funds; this page is not an inspection, bid, appraisal, lender commitment, or tax opinion.
Fix and Flip Calculator FAQ
How does the fix and flip calculator calculate profit?
Profit equals gross sale price minus purchase, acquisition closing, rehab, holding, financing, percentage selling, and fixed exit costs.
What should be included in holding costs?
Include carrying costs for the entire ownership period, such as property taxes, insurance, utilities, maintenance, security, and other recurring property charges that apply to your scenario.
Does the calculator calculate a hard money loan?
No. Financing costs are one aggregate input on this page. Use the hard money loan calculator to estimate simple interest, points, and lender fees, then transfer the relevant total without double-counting.
How is break-even sale price calculated?
It equals project cost before sale plus fixed exit costs, divided by one minus the selling-cost rate. This solves for a sale price that also pays its own percentage-based selling cost.
What belongs in fixed exit costs?
Use the field for seller costs that do not change with sale price. Percentage-based brokerage or concessions belong in the selling-cost rate; do not count the same charge twice.
Are taxes included in fix-and-flip profit?
No. The result is before income and entity-level taxes. Tax treatment depends on the owner, activity, holding facts, and jurisdiction and requires separate review.
Continue the property analysis
Compare this result with adjacent metrics, keeping each formula’s income, expense, and financing scope consistent.