Understanding Rehab ROI
How we calculate. ROI % = (after-repair value − all-in cost) ÷ all-in cost × 100. See our methodology and accuracy policy .
Real-world scenario: A typical Rehab ROI case uses after-repair value (arv) 320000 and total project cost 250000. Enter the same figures below to reproduce the worked path.
What is Rehab ROI?
A simple project return screen for rehabs and flips. Selling costs and taxes may need separate haircuts.
- Define all-in cost clearly
- ARV should be supportable
- Not a cash-on-cash metric unless cost = cash in
The Formula
Worked Example
Common Use Cases
- Flip underwriting: deal screens
- Contractor bids: cost vs ARV
- BRRRR planning: value-add checks
Pro Tips
- Include holding costs
- Haircut ARV for sell costs
- Stress rehab overruns
| Scenario | When to use |
|---|---|
| Percent of a number | Finding a part of a whole (tax, tip, score) |
| Percent change | Comparing old vs new values |
Limitations: Rehab ROI results are educational real-estate planning aids—not appraisals, loan offers, or investment advice. Confirm figures with qualified professionals.
Common mistakes
- Swapping part and whole: The denominator must be the full total, not a subset.
- Rounding too early: Carry extra decimal places through multi-step work before rounding the final percent.
- Mixing percent and decimal forms: Enter rates in the format the calculator labels expect.
When to use this calculator
- Use this page for rehab roi when you are comparing gain or return to money invested.
- Use the margin calculator when profit should be a percent of selling price, not of capital invested.
- Use the discount calculator when you only need a sale price from list × percent off.
- After ROI, compare borrowing cost with the loan interest calculator or multi-year growth with the CAGR calculator.
Still unsure about rehab roi? Start with the quick answer above, then open the linked calculator that matches your wording.
❓ Frequently Asked Questions
How do I use this rehab roi calculator?
For rehab roi, enter the values labeled on the form, then press Calculate. Compare the result to the worked example on this page.
What formula does this page use?
See the quick answer and formula box above for rehab roi—the same business roi expression is applied to your inputs.
What if my result looks wrong?
When checking rehab roi, re-check part vs whole (or rate vs base), rounding, and whether percents were entered as 25 rather than 0.25 when the form expects percents.
Authoritative References
For real estate investing concepts, consult:
- National Association of Realtors — market context
- Investopedia — NOI — net operating income basics
- CFPB — homebuying education