What is a good ROI on a flip?

Industry data often cites average gross ROI near 23–25% per flip, but a 'good' net ROI depends on your market, capital, and risk. The key is to calculate ROI net of financing and selling costs, not just gross profit on paper.

What's the difference between gross and net ROI?

Gross ROI typically compares profit to the purchase price before financing and selling costs. Net ROI accounts for all costs — including holding, financing points and interest, and selling commissions — against the actual cash you invested, which is the more honest measure.

How does financing affect ROI?

Leverage reduces the cash you tie up in a deal, which raises ROI when the flip is profitable — but it adds interest and points to your costs and increases risk. An all-cash flip has a lower ROI on the same profit because more of your own money is invested.

Deal Analysis

House Flipping ROI: How to Calculate Your Return (2026)

Profit is a number; ROI is the number that tells you whether the deal was actually worth it.

June 17, 2026 · 6 min read

Quick answer

House flipping ROI is your net profit divided by the cash you invested, shown as a percentage. Net profit is the sale price minus purchase, rehab, holding, financing, and selling costs. If you invest $60,000 of your own cash and net $30,000, that's a 50% return. Recent industry data puts average gross flipping ROI near 23–25%.

How flipping ROI is calculated

Return on investment measures profit relative to what you put in. For a flip, net profit is the resale price minus every cost: purchase, rehab, holding, financing, and selling. ROI divides that net profit by the cash you actually invested out of pocket — which, with leverage, is far less than the property price.

ROI = Net Profit ÷ Cash Invested. Net Profit = Sale Price − (Purchase + Rehab + Holding + Financing + Selling Costs).

A worked example

Item	Amount
Sale price (ARV)	$300,000
− Purchase, rehab, holding, financing, selling	$240,000
= Net profit	$60,000
Cash you invested out of pocket	$60,000
ROI (profit ÷ cash invested)	100%

Note how leverage changes the picture: the same $60,000 profit on a $300,000 all-cash purchase would be a much lower ROI. Financing reduces the cash you tie up, which raises ROI — though it adds interest and points to the cost side.

What's a good flip ROI — and the costs that cut it

Industry data commonly cites average gross ROI around 23–25% per flip, but 'gross' ignores financing and selling costs. Aim to know your net ROI. The costs that quietly erode it are the ones beginners under-budget: holding costs that grow with the timeline, financing points and interest, and selling costs (agent commission and concessions) that can run 6–8% of the sale price.

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Frequently asked questions

How do you calculate ROI on a house flip?: Divide your net profit by the cash you invested. Net profit is the sale price minus purchase, rehab, holding, financing, and selling costs. For example, $30,000 of net profit on $60,000 of your own cash invested is a 50% ROI.
What is a good ROI on a flip?: Industry data often cites average gross ROI near 23–25% per flip, but a 'good' net ROI depends on your market, capital, and risk. The key is to calculate ROI net of financing and selling costs, not just gross profit on paper.
What's the difference between gross and net ROI?: Gross ROI typically compares profit to the purchase price before financing and selling costs. Net ROI accounts for all costs — including holding, financing points and interest, and selling commissions — against the actual cash you invested, which is the more honest measure.
How does financing affect ROI?: Leverage reduces the cash you tie up in a deal, which raises ROI when the flip is profitable — but it adds interest and points to your costs and increases risk. An all-cash flip has a lower ROI on the same profit because more of your own money is invested.