To use the Home Flip Calculator, enter the purchase price, after repair value (ARV), rehab costs, and other associated costs. The calculator will provide you with key metrics such as net profit, ROI, and cash-on-cash return.
The net profit is calculated by subtracting total costs from the ARV. ROI is calculated as (Net Profit / Total Investment) * 100. Cash-on-cash return is (Net Profit / (Purchase Price + Rehab Costs)) * 100. MAO is ARV minus all costs and desired profit.
Suppose you purchase a home for $250,000, with an ARV of $350,000, and incur $50,000 in rehab costs. If your selling costs are 8% and you have $2,000 in holding costs, the calculator will show your net profit and other metrics.
Ensure you have a comprehensive understanding of the local real estate market. Use tools like Mortgage Calculator and ROI Calculator to complement your analysis.