Fix Flip ROI Calculator

Fix-flip ROI considers profit relative to capital and time held.

Total cash invested

Net profit

Months to complete

Annualized ROI %

1.2%

Absolute ROI %

0.6%

Months to complete

How the math works

Absolute ROI = profit / cash invested. Annualized = absolute × (12 / months).

$32k / $55k = 58.2% absolute × (12/6) = 116.4% annualized ROI.

How to Use

Enter total cash invested.
Enter net profit.
Enter months to complete.
Read annualized roi %.

Frequently Asked Questions

Fix-flip ROI benchmarks?

Cash-on-cash: 25–60% per project typical, varies by market. Annualized ROI: 60–200%+ when projects complete in 4–8 months. Failed projects: 0–15% ROI or loss. Top metro flip ROIs Q4 2024 (ATTOM): Indianapolis, Phoenix, Cleveland, Pittsburgh. Worst: SF Bay, NYC, LA (high cost basis, slim margin). Sweet spot: $200–500k ARV, 8–15 weeks rehab, B-class neighborhood, comp-rich market. Investor mistakes: over-rehab, under-comp, rehab cost overrun, market shift mid-project.

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.