Buyer Profit Proof Calculator

This calculator will not tell you, and that is a decision rather than an oversight. The percentage is a shorthand that bundles a buyer's carry, their cost of selling and their profit into one number, so it is not a property of the market — it is a property of the buyer, and it moves. The same buyer runs a different number in a market where houses sit than in one where they do not, a different number on a house that needs a roof than on one that needs paint, and a different number again if they intend to rent it rather than sell it. Any figure this page offered would be wrong for somebody the first day it shipped, and it would be wrong in the direction of talking you into a price. The field loads at a value because a numeric input has to load at something; ask your buyer what theirs is and put that in, or clear it and let the profit line be the only test.

Because buyers state their requirement in two different ways and neither implies the other. Some name a profit they must clear, which is an explicit figure you can check against the line items. Others name a percentage of after-repair value they will not go above, which is the same requirement compressed into one number along with their carry and their selling costs. A buyer who gives you both is usually giving you two different opinions formed at different times, and only the tighter one matters — that is the one this page calls the binding test. Which is tighter is an output, not an assumption, and on the figures as they load it is the percentage by a wide margin. If the two disagree materially it is worth asking your buyer which they actually apply, because the answer changes what you can ask for.

No, and it is not trying to be. It is the profit implied by the numbers on this page — the after-repair value, the work, the carry and the cost of selling, all of them estimates entered by you. It assumes no loan, so a buyer using hard money will pay points and interest that are not here, and it assumes the work comes in at budget and the house sells at value, which are the two places a flip most often loses money. What it is good for is the conversation: it puts the same subtraction your buyer is doing on a screen you can both look at, itemised, so a disagreement is about a line rather than about a conclusion.

Because leaving them out is the single largest source of optimism in this arithmetic, and because your buyer is not leaving them out — they simply are not saying them to you. Several months of money, taxes, insurance and utilities, then a commission and their side of the second settlement, routinely come to a tenth of the after-repair value between them. A version of this sum done without those two lines makes a deal look like it clears far more than it does, and the person who finds out is you, in the form of a buyer who goes quiet after running their own numbers. Entering them is also what makes the fee ceiling on this page honest, because both of them come out before the profit does.

Exactly, and by construction rather than by coincidence. The investor suite's maximum allowable offer answers the opposite question — the most a buyer can pay, given a percentage, a repair budget and a fee — and this page reuses that same function rather than writing the subtraction a second time. Feed the fee ceiling from here back into that page with the same after-repair value, percentage and repair budget and it returns your contract price precisely. Two implementations of one formula would agree until one of them was corrected, which is the failure the shared arithmetic module exists to remove; there is an assertion that pins the round trip.

That the contract price on its own already breaks whichever test is binding, so there is no fee — not even a fee of nothing — that makes the deal work for that buyer on those numbers. It is deliberately shown as a negative rather than floored at zero, because a floor would turn a deal that cannot be done into an instruction to work for free. The useful reading is the size of the negative: it is how far the contract price would have to come down before there is anything to charge for. That is a renegotiation, a different buyer with a different requirement, or a different property.