Real Estate Investment Calculator
Calculate profit and return on investment for a real estate flip, including purchase, renovation, holding and selling costs.
- Purchase Price$180,000.00 · 81%
- Renovation Cost$35,000.00 · 16%
- Holding Costs$6,000.00 · 3%
Your $221,000.00 total investment breaks down into purchase, renovation and holding costs — against a projected $246,450.00 in net sale proceeds.
- ROI11.52%
- Total Investment$221,000.00
- Net Sale Proceeds$246,450.00
About the Real Estate Investment Calculator
Selling price minus purchase price feels like profit, but it isn't — renovation costs, months of holding costs while the property isn't earning anything, and selling costs (agent commissions, closing costs) all eat into that gap before anything counts as real profit. This calculator adds up the full cost side of a flip and nets it against realistic sale proceeds, so the ROI figure it shows reflects what you'd actually walk away with, not the naive sale-minus-purchase number.
It's for real estate investors and house flippers evaluating a specific deal — sizing up a fixer-upper before making an offer, or double-checking the math on a deal already in progress against the renovation budget and timeline actually panning out.
The purchase price you're considering, the renovation budget, the numbers on a deal you haven't committed to yet — none of it needs to leave your browser to get a real answer.
How it’s calculated
Total investment adds purchase price, renovation cost, and holding costs (property tax, insurance, and loan interest while you own it) into one figure. Net sale proceeds take your expected selling price and subtract selling costs — typically agent commissions and closing costs, often estimated around 6-8% combined. ROI is simply profit (net proceeds minus total investment) divided by total investment, expressed as a percentage.
Frequently asked questions
What's a good ROI for a house flip?
Many experienced flippers target 15-20%+ ROI on a deal to account for the risk and effort involved, though the right target depends on your market, financing costs, and how much of the work you're doing yourself versus hiring out.
What counts as a holding cost on a flip?
Property tax, insurance, utilities, and loan interest (if the purchase or renovation is financed) for every month you own the property before it sells — costs that accrue whether or not the renovation is finished, which is why a longer-than-planned timeline directly erodes profit.
Why are selling costs so high on a flip?
Real estate agent commissions alone typically run 5-6% of the sale price, split between buyer's and seller's agents, and closing costs add more on top — combined, 7-10% of the sale price going to selling costs is a realistic assumption, not a worst case.
Should I include financing costs like loan interest in this calculation?
Yes, if you're financing the purchase or renovation — loan interest paid during the holding period is a real cost of the deal and belongs in your holding costs figure, since it directly reduces your actual profit.
How do I get an accurate renovation cost estimate before buying?
A contractor walkthrough before you close, or before your inspection contingency expires, is the most reliable way — rough per-square-foot estimates from online guides are useful for an initial screen but can be significantly off for a property with hidden issues.
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