Did you ever struggle with math growing up? Clutching your pencil with tears in your eyes, unsure of what the numbers meant, let alone what to do with them?
Everyone has that moment of childhood agony struggling with the simple formulas. Whether fractions, circumferences, elasticity or other formulas, if you have stared at numbers and are unsure of what to do next, don’t worry!
While doing the equations for your investment might require more heaving lifting than childhood math class, there is no reason to struggle now.
This flip calculator makes it easy to know the intimate details of a flip, and whether or not you should invest!We rounded up the best calculators for investments, along with the formulas for you to use!
Don’t get stumped by formulas and start investing today!
The Best Calculator For ARV
After repair value, or ARV is a must know for any real estate investor. Not only does this calculation clue you in on what your investment could possibly sell for. When calculating for your flips, after repair value can help you understand where the market stands, and what repairs will make you the most money.
If you want the formula for yourself, here is how it works.
To calculate the ARV of a property, the following you can apply the following formula.
Property’s Current Value + Value of Renovations = ARV
The property’s purchase price is $100k. The repair cost is $25k, and you expect to sell it for $150,000, the value of repairs is $50k but the cost of repairs is only $25k. This results in an ARV of $150k and a potential profit of $25k.
ARV, or after repair value is important because it determines a project’s sale price, renovation budget, and overall profits for the flippers. It is also used investors looking to determine the value of a rental property after renovations to estimate rent and/or the future value of the long-term property.
Don’t feel like doing the math yourself? Get The ARV Calculator here.
The Best Flip Calculator For ROI
Every real estate investor needs to know what ROI is. ROI or ‘Return On Investment’ means the percentage of invested money that’s recouped, or returned after the costs. In Real estate terms, the amount of money gained from an investment. There are many different ways to calculate for ROI, and a flip calculator makes it easy to learn your ROI for an investment.
A basic ROI formula looks like this. ROI=(Gain−Cost)/Cost. This formula simply lays out how much you need to make on an investment to see a return. For Real estate investors, there are 2 other ways to calculate your ROI. Depending on your investment( we cover these below)
When you use a flip calculator for your ROI you will have a better understanding of your investment and do a basic risk assessment. While Real estate markets fluctuate quickly, using a ROI flip calculator is a great way to understand what you can gain from an investment.
Here is our favorite ROI flip calculator.
The Best Flip Calculator For Rentals
Rentals are a great way for real estate investors to build passive income, and fund their other investments. While hand math for rental investments are a bit trickier, we suggest the ROI cost method!
The cost method is perfect for properties bought in cash, or rental properties, and those more interested in the cash flow and not equity. Here is the formula or the ROI cost method.
The costs in this method include all the expenses related to repairs, renovations, and purchases. With this method, any of the expenses involved in renovating and repairing the property are added.
This is a simple method meant to look at the potential a property has. If you are looking at roi, recurring operating expenses such as maintenance fees, admins, general monthly income, and more, The math gets tricky quickly.
For those looking for a more robust formula, this rental flip calculator covers it all.
The Best Flip Calculator For House Flipping
House flipping math is far from easy, and choosing the best flip can be overwhelming. Aside from juggling ARV, ROI’s and pricing out repairs, how can you know a flip is a good investment?
A basic hand formula you can use is the Out of Pocket Method for ROI. Properties bought with cash, and equity, or for flips!
The formula for the out of pocket ROI: ROI= Annual Cash Flow / Total Investment Cash.
This differs from the cost method as it only accumulates the cash flow, to the total cost.
You can also get a house flipping spreadsheet here.
If you are looking for a flip calculator, like to calculate the purchase price, operating expenses, taxes, and everything in between. This is a house flipping calculator for everything you need for your flip!
Calculating for your flip doesn’t have to be difficult! Whether you prefer the hand method, or you want a calculator that does all for you, finding your next investment!
Here is our roundup of the best flip calculators for your investment!
- The Best Calculator For ARV
- The Best Flip Calculator For ROI
- The Best Flip Calculator For Rentals
- The Best Flip Calculator For House Flipping
What is your favorite flip calculator?