Vortonic

Free Tool

Flip Profit Calculator.

Calculate your true net profit, ROI, and cash-on-cash return on any fix-and-flip deal. Includes holding costs, closing costs, and financing.

Purchase & Sale

Holding Costs

Taxes, insurance, utilities, maintenance

Closing Costs

Title, escrow, recording — typically 1-3%

Agent commissions, title, transfer tax — typically 6-10%

Financing (Optional)

How to Calculate Flip Profit (The Right Way)

The biggest mistake new house flippers make is calculating profit by simply subtracting the purchase price and repair costs from the sale price. In reality, there are several other cost categories that can consume $20,000 to $50,000 or more per deal — and ignoring them is a recipe for losing money.

The Complete Flip Profit Formula

Net Profit = Sale Price − Purchase Price − Repairs − Closing Costs − Holding Costs − Financing Costs

Common Expenses People Miss

  • Sell-side closing costs— Real estate agent commissions alone are typically 5-6% of the sale price. On a $300K sale, that's $15-18K. Add title insurance, transfer taxes, and escrow fees, and sell-side closing costs reach 8-10%.
  • Holding costs— Every month you own the property, you're paying property taxes, insurance, utilities, lawn care, and potentially HOA fees. At $1,500-2,500/month, a 6-month project adds $9-15K in holding costs.
  • Financing costs — Hard money loans charge 10-15% annual interest plus 1-3 points upfront. On a $150K loan for 6 months, financing costs can total $10-15K.
  • Staging and marketing — Professional staging ($2-5K) and quality photography significantly impact sale price and days on market.
  • Rehab overruns — Most projects go 10-20% over budget. Build a contingency into your repair estimate.

Understanding ROI vs. Cash-on-Cash Return

ROI (Return on Investment) measures your profit relative to the total money invested in the deal. If you invested $250K total (purchase + repairs + costs) and made $40K profit, your ROI is 16%.

Cash-on-cash return measures profit relative to the cash you personally invested (excluding borrowed money). If you used a $150K hard money loan and put $100K of your own cash in, your $40K profit represents a 40% cash-on-cash return. This is why experienced investors use leverage — it amplifies returns on their own capital.

Realistic ROI Expectations

Experienced flippers typically target 15-25% ROI on total investment, or a minimum net profit of $25,000-$30,000 per deal to justify the time, risk, and capital involved. In competitive markets, margins are thinner but deal volume can be higher. In less competitive markets, individual margins are better but deals may be harder to find.

This calculator gives you a realistic picture of deal profitability. For automated deal analysis across your entire pipeline, Vortonic's platform screens hundreds of properties simultaneously — calculating profit projections, flagging deals that meet your criteria, and alerting you the moment a viable opportunity hits the market.

Frequently Asked Questions

How do you calculate profit on a house flip?

Net Profit = Sale Price − (Purchase Price + Repair Costs + Closing Costs + Holding Costs + Financing Costs). Many new investors only subtract purchase price and repairs from the sale price, forgetting that closing costs (6-10% of sale price), holding costs, and loan interest can consume $20,000-$50,000+ on a typical flip.

What is a good ROI for a house flip?

Most experienced flippers target a minimum 15-20% ROI on total investment, or a net profit of at least $25,000-$30,000 per deal. Cash-on-cash returns are often higher (30-50%+) when using leverage. Returns below 10% are generally not worth the risk and effort involved in flipping.

What holding costs do house flippers typically have?

Common holding costs include property taxes, insurance, utilities (electric, water, gas), lawn maintenance, HOA fees (if applicable), and loan interest payments. These typically total $1,000-$3,000 per month depending on the property value and location. Over a 6-month flip, that's $6,000-$18,000 in holding costs alone.

What closing costs should I include when flipping a house?

Buy-side closing costs (1-3% of purchase price) include title search, escrow, recording fees, and lender fees. Sell-side closing costs (6-10% of sale price) include real estate agent commissions (typically 5-6%), title insurance, transfer taxes, and escrow fees. Sell-side costs are the larger expense.

How does hard money financing affect flip profits?

Hard money loans typically charge 10-15% annual interest plus 1-3 points (upfront percentage of the loan). On a $150,000 loan at 12% for 6 months, you'd pay $9,000 in interest plus $3,000 in points — $12,000 total. While this reduces profit, leverage amplifies your cash-on-cash return because you invest less of your own capital.

Analyze deals at scale, not one at a time.

Vortonic automatically calculates profit projections for every property in your pipeline — so you spend time on closings, not spreadsheets.

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