Home Profit Calculator

The Home Profit Calculator helps users estimate their total investment, selling costs, gross profit, net profit, overall return on investment, and monthly ROI from a property transaction by considering purchase, holding, renovation, and selling expenses along with realtor commissions.

Use Our Home Profit Calculator

Using the Home Profit Calculator

Step 1: Input Initial Costs

Begin by entering the Purchase Price of the property. This is the price at which you bought the home. Ensure that this value is greater than $1000 as required.

Next, input the Closing Costs associated with the purchase. These can include fees related to the closing process. The value must be zero or higher.

Enter the Renovation Costs, which are expenses related to repairing or upgrading the property. Make sure this value is also zero or higher.

Step 2: Specify Ongoing Costs and Period

Fill in the Monthly Holding Costs, which encompass any monthly expenses such as insurance, taxes, or loan payments. Again, this should be a non-negative value.

Specify the Holding Period (Months), which is the duration (in months) you plan to hold the property before selling it. It should be a minimum of 1 month and can go up to a maximum of 360 months.

Step 3: Potential Selling Details

Input the Expected Selling Price, which is the amount you anticipate selling the property for. This should be above $1000.

Enter the Realtor Commission (%), representing the percentage of the selling price that you will pay to the realtor. This value should range between 0 and 10, and can be entered as a decimal to one-tenth percent if necessary (e.g., 5.5 for 5.5%).

Step 4: Review Results

  • Total Investment: The calculator will compute the sum of your purchase price, closing costs, renovation costs, and the total holding costs (monthly costs multiplied by the holding period).
  • Selling Costs: The result will include the cost associated with the realtor commission based on your expected selling price.
  • Gross Profit: This is the straightforward difference between your expected selling price and the purchase price.
  • Net Profit: The net profit calculation factors in your total investment and selling costs to determine your profit after all expenses.
  • Return on Investment (ROI): This percentage value shows how much profit you earn relative to your total investment.
  • Monthly ROI: The calculator provides a breakdown of the ROI on a monthly basis, offering insight into the monthly efficiency of the investment.

By carefully inputting all required fields and considering each result, you can effectively use the Home Profit Calculator to assess the profitability of your property investment venture.