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Real Estate InvestorGenerated accuracy model review: 2026-05-06
Flip Profit Calculator accuracy and testing
This page documents how Calwarden builds trust for this calculator: source notes, regression-style default tests, limitations, assumptions, unit handling, rounding, and visible change history.
Formula source
- Total project cost = purchase price + rehab budget + holding costs + selling costs + financing costs. Net flip profit = after-repair sale price - total project cost. Profit margin = net flip profit / after-repair sale price x 100.
Test cases
Default input regression check
Generated from the checked-in default inputs and calculate function.
Inputs
- After-Repair Sale Price: $360,000
- Purchase Price: $215,000
- Rehab Budget: $62,000
- Holding Costs: $9,000
- Selling Costs: $24,000
- Financing Costs: $8,000
Expected outputs
- Net Flip Profit: $42,000.00
- Total Project Cost: $318,000.00
- Profit Margin: 11.67%
- Cost Basis as % of ARV: 88.33%
Known limitations
- This calculator is a planning model only. It does not predict appreciation, market liquidity, lender approval, tax treatment, insurance availability, permit risk, legal obligations, construction defects, tenant behavior, or final sale price.
Assumptions
- All costs, rents, ARV, loans, reserves, fees, and rates are user-entered assumptions.
- Calculations are deterministic and do not fetch market rents, tax rules, insurance quotes, lender terms, or property records.
- Results are estimates only and are not financial, tax, legal, lending, appraisal, inspection, or investment advice.
Unit handling
- After-Repair Sale Price accepts values in $.
- Purchase Price accepts values in $.
- Rehab Budget accepts values in $.
- Holding Costs accepts values in $.
- Selling Costs accepts values in $.
- Financing Costs accepts values in $.
- Net Flip Profit is displayed as currency.
- Total Project Cost is displayed as currency.
- Profit Margin is displayed as a percentage.
- Cost Basis as % of ARV is displayed as a percentage.
Rounding rules
- Number displays use up to 2 decimal places in the calculator UI.
- Currency outputs are displayed with standard US dollar formatting.
- Percent outputs are displayed with two decimal places.
- Input precision follows configured step values where provided.
Version history
1.0.0 - 2026-05-06
Generated accuracy and testing page from the current flip-profit-calculator calculator definition.
Change log
2026-05-06
Published default regression test documentation and metadata fallbacks for Flip Profit Calculator.
Calculator transparency
Accuracy pages are generated from checked-in calculator definitions and can be upgraded with curated review metadata over time.