Real Estate ROI Calculator — Fix & Flip
Calculate your cash-on-cash ROI, profit margin, and annualized return for any fix-and-flip deal. Know your numbers before you make an offer.
Deal inputs
How to Calculate ROI on a Fix and Flip
ROI (return on investment) for a house flip measures how much you made relative to what you put in. There are two important versions:
- Cash-on-cash ROI — net profit divided by your actual cash invested (down payment + rehab out of pocket + carrying costs). This is the most common metric flippers use because it reflects the real return on your own money.
- Annualized ROI — cash-on-cash ROI adjusted for the time the money was deployed. A 40% return in 4 months annualizes to ~120%, which lets you compare flips of different hold periods.
What's a Good ROI for a Fix and Flip?
Most experienced investors target a minimum of 15–20% cash-on-cash ROI per flip, with a profit margin (profit ÷ ARV) of at least 15%. In practice, deals with a profit margin below 10% are usually not worth the risk unless the property is exceptionally low-risk or the hold period is very short.
Annualized ROI above 50–60% is considered strong. The 70% rule is a popular shortcut: your all-in cost (purchase + rehab) should be no more than 70% of ARV, leaving a 30% margin for holding costs, closing costs, and profit.
Why the 70% Rule Isn't Enough
The 70% rule is a quick filter — not a full analysis. It doesn't account for:
- Financing costs (interest payments on a hard money loan can be $3,000–$5,000/month)
- Holding period variance — a 3-month flip vs. a 9-month flip have very different carrying cost profiles
- Your actual closing cost structure
- Local market conditions and days-on-market risk
Use this calculator (or better yet, FlipIQ's full analyzer) to run a complete deal model before making an offer.
Frequently Asked Questions
What's the difference between ROI and profit margin on a flip?
Profit margin is your net profit as a percentage of the ARV (sale price). ROI is your net profit as a percentage of your cash invested. A deal can have a healthy profit margin but lower ROI if you put a lot of cash in — that's why both metrics matter.
Should I include holding costs in my ROI calculation?
Yes, always. Carrying costs (property taxes, insurance, HOA, utilities) are a real cost of the deal. Forgetting them is one of the most common mistakes new investors make. On a 6-month hold with $400/month in carrying costs, that's $2,400 that comes directly out of your profit.
How do hard money loans affect my ROI?
Hard money loans amplify both returns and risks. Using leverage reduces the cash you put in (boosting ROI when things go well) but adds monthly interest expense. At 11–13% annual rates, a $120,000 loan costs roughly $1,100–$1,300/month in interest — that's $6,600–$7,800 on a 6-month flip.
What should my minimum ROI target be for a flip?
Most active investors won't touch a deal below 15% cash-on-cash ROI. If you're doing 2–3 flips a year, a 15–25% ROI per deal is solid. Targeting higher ROI isn't just about greed — it's a risk buffer. Markets change, rehab costs run over, and properties sit longer than expected. Padding your margin gives you room to still make money when things don't go perfectly.