Follow the default numbers.
With purchase price of $350,000, the model gives estimated flip profit: $59,363.
The formula is arv − purchase − rehab − holding − financing − sale costs. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.
Profit includes the costs of time
A flip’s gross spread is not its profit. This estimate subtracts purchase price, rehab, acquisition fees, origination points, holding expenses, interest and selling costs from ARV. Interest uses a constant acquisition loan balance; rehab draws or interest on staged disbursements need a separate lender schedule. Monthly non-loan holding costs include taxes, insurance, utilities and similar carrying expenses.
ROI depends on the cash denominator
Levered ROI divides profit by the cash required after acquisition financing, plus rehab and modeled costs before the sale. Selling costs reduce profit but are assumed paid from sale proceeds rather than funded upfront. The unlevered project cost is shown separately. Borrowing can increase the percentage return while increasing loss risk. The loan principal is repaid from sale proceeds and is not counted a second time as an expense.
ARV needs evidence
Build the expected resale price from similar closed sales in comparable condition. A renovation budget does not automatically add an equal amount to resale value. Compare a lower ARV and a longer hold before deciding what to offer. Annualized ROI is a mathematical extrapolation of one project’s duration; it assumes the same return could repeat and does not represent a reliable annual investment yield.
Plan the exit before buying
Include concessions, negotiated agent compensation, transfer taxes and title charges in the selling-cost percentage. Check loan extension fees and a balloon deadline. A rental fallback needs separate NOI and refinance analysis, which the BRRRR page provides. Save the flip and rental scenarios together so a deal report shows both outcomes using your own numbers.
Keep your assumptions with the result
Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.