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House Flipping ROI Calculator

Calculate profit and ROI on a house flip after renovation and selling costs.

Formula v1.0.0GlobalMethodologyReport an issuehouse-flipping-roi-v1
How this is calculated
Total investment = Purchase + Renovation + Holding + Selling costs; ROI % = (Selling price − Total investment) ÷ Total investment × 100

Assumptions used in this calculation

  • Cash basis: ROI is computed against total cash invested (purchase + renovation + holding + selling costs), not against a smaller down payment, treat financing costs as part of holding costs if you used a loan.
  • Taxes not included: Doesn't account for capital gains tax on the flip profit, which can be significant for short-hold properties depending on your jurisdiction.

About this calculator

House flips fail financially more often from underestimated soft costs than from the renovation budget alone, holding costs and selling fees quietly eat into margin while a flipper focuses on the visible construction number. This calculator totals every cost stream in a flip, purchase price, renovation budget, holding costs (property tax, loan interest, utilities while unsold) and selling costs (agent fees, closing costs), then compares that combined total against the expected selling price to compute profit and return on investment as a single percentage. Instead of juggling five numbers in a spreadsheet or mental math that easily drops a cost category, you get an instant, complete picture of whether a deal actually pencils out before you commit capital to it. Because ROI is highly sensitive to renovation overruns and holding-period length, running the numbers with a slightly padded renovation estimate and a realistic sale timeline gives a more reliable read than the sunniest-case projection a seller or contractor might pitch.

Worked example

₹40L purchase, ₹8L renovation, ₹1.5L holding, ₹2.5L selling costs, ₹58L sale

Result: ROI ≈ 11.5%

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