Fix-and-Flip Profit and Return

What a flip nets and what it returns, after every cost of holding and selling.

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Example

You enter

After-repair value ARV ($) 300000
Purchase price ($) 180000
Rehab budget ($) 40000
Holding costs ($) 8000
Financing (points + interest, $) 12000
Selling cost (% of ARV) 6
Cash invested ($) 114000
Hold period (months) 6

You get

All-in cost 258000
Net profit (margin) 42000
Cash ROI (annualized) 0.3684

Details, formula, and sources

All-in = purchase + rehab + holding + financing + selling (ARV x sell%), profit = ARV - all-in, returns = profit/ARV and profit/cash (annualized). $300K ARV, $180K buy, $40K rehab, 6 mo -> $42K profit (14% margin), 36.8% cash ROI, 73.7% annualized; a thinner buy drops it to 10.5%. A screening aid.

selling = ARV x sell%; all_in = purchase + rehab + holding + financing + selling; profit = ARV - all_in; margin = profit/ARV; roi = profit/cash; annual = roi x 12/months.

The fix-and-flip profit and return computation used by real-estate investors, by name.

The all-in-cost, profit, and cash-return breakdown of a flip is a widely-published real-estate-investing computation.

Estimate. AHJ and licensed professional govern.

Field names used by the API: arv_usd, purchase_usd, rehab_usd, holding_usd, financing_usd, selling_pct, cash_invested_usd, hold_months, all_in_usd, profit_usd, roi

All-in cost purchase + rehab + holding + financing + selling (ARV x sell%)fix-and-flip practice
Returns margin = profit/ARV, cash ROI = profit/cash, annualized x 12/monthsreal-estate-investing
Unverified inputs ARV from real comps, rehab from a real scope; gain tax not modeledscope of this tile