Results
Net Profit
--
Profit Margin
--
Total Project Cost
--
Min ARV to Break Even
--
Profit if ARV is 5% Lower
--
Sensitivity check

How It Works

Total Project Cost

Your total cost includes the purchase price, rehab, purchase closing costs, holding costs during the renovation period, contingency reserve, and financing costs on the rehab loan.

Total Cost = Purchase + Rehab + Purchase Closing + Holding + Contingency + Financing

Net Profit

Net profit is the ARV minus your total project cost and sale closing costs (agent commissions, transfer taxes, etc.).

Net Profit = ARV - Total Cost - (ARV × Sale Closing %)

Profit Margin

Margin = Net Profit / (Purchase + Rehab + Purchase Closing + Financing) × 100

Minimum ARV to Break Even

The lowest after-repair value at which you don't lose money, accounting for sale closing costs.

Min ARV = Total Cost / (1 - Sale Closing %)

Sensitivity Analysis

If the ARV comes in 5% lower than expected, this shows the impact on your profit. Always plan for conservative outcomes.

Frequently Asked Questions

What is a good profit margin for a flip?

Most experienced flippers target 10-20% net margins. Margins below 10% may not justify the risk and effort involved.

What should I include in holding costs?

Holding costs cover loan interest, property taxes, insurance, utilities, and HOA fees during the renovation period. Budget conservatively.

How do I estimate ARV?

Look at comparable sales (comps) of renovated similar properties within 1 mile, sold within the last 3-6 months. Adjust for differences in size, condition, and location.

Why include a contingency?

Unexpected issues always arise during renovation. A 10-20% contingency on rehab costs is standard practice to avoid budget overruns.

Cash on Cash Return Calculator

Rental ROI projects five years; cash-on-cash focuses on the annual income your invested cash generates. Investors watch it to compare deals that need different down payments. Screen potential properties and stress your assumptions before you commit.

Cash on Cash Return Calculator — read more

More Calculators