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Flip / Refurb ROI Calculator
Calculate the profit and return on investment for a buy-refurbish-sell (flip) project. Enter all costs and the expected sale price.
Purchase
Refurbishment
Sale
Projected Profit
£30,850
Profit on Cost
19.9%
ROI
24.7%
Annualised ROI
74.0%
Deal Summary
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Frequently Asked Questions
What is a good ROI for a property flip in the UK?
A successful flip in the UK typically targets 15-25% profit on total project cost. After accounting for bridging finance, stamp duty, refurbishment, and sale costs, anything under 10% leaves too little margin for cost overruns. Annualised returns of 30-60% are achievable on well-executed short-cycle flips.
Do I pay stamp duty when flipping a property?
Yes. If you already own another property (including your home), you pay the 5% additional property surcharge on top of standard SDLT rates. On a £150,000 flip property, this adds £7,500 to your costs. First-time investor buyers pay the surcharge too if buying through a company, though company purchases have different rules.
What is the difference between profit on cost and ROI in a flip?
Profit on cost is the gross profit divided by total project cost — it measures how efficiently you deployed capital throughout the project. ROI (return on investment) here measures profit against the initial purchase cost only. Both are useful: profit on cost tells you deal quality, annualised ROI lets you compare against other investments.
Do I pay Capital Gains Tax when I sell a flipped property?
If you flip properties as a business activity, profits may be treated as trading income and taxed as income tax rather than Capital Gains Tax. If you flip occasionally as an investor, CGT applies at 18% (basic rate) or 24% (higher rate) on residential property gains from April 2024. HMRC will determine the treatment based on the frequency and nature of activity.
What refurbishment costs can I deduct when flipping?
All costs directly related to the flip are deductible: purchase price, stamp duty, legal fees, survey, refurbishment materials and labour, bridging finance costs, estate agent fees, and sale legal fees. Keep receipts for everything — these reduce your taxable profit significantly.
Disclaimer: This calculator provides estimates for illustrative purposes only. Results are based on simplified assumptions and should not be relied upon for financial decisions. Actual costs, returns, and outcomes will vary. Always consult a qualified professional before making property or financial decisions.
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Property Flipping in the UK — How to Make It Work
Property flipping (buying, renovating, and selling for profit) can generate significant returns but carries more risk than buy-to-let — your capital is tied up during refurbishment, the market can move against you, and costs almost always exceed initial estimates. A well-executed flip in the right area can return 15-25% on invested capital in 4-9 months. A poorly planned one loses money even in a rising market.
The fundamental rule: profit is made on the purchase, not the sale. If you pay too much at acquisition, no renovation will make the numbers work. Target properties at least 20-25% below market value after works.
Flip vs BRRR — Which Is Better?
Flipping generates a lump sum profit but you pay CGT on it and lose the asset. BRRR (Buy, Refurb, Refinance, Rent) recycles your capital — same refurbishment, but then remortgage to extract capital back out and hold for rental income. For long-term wealth building, BRRR typically wins. Flipping is better for generating short-term cash.
The True Cost of a Flip
Beyond purchase price and refurb: stamp duty (5% surcharge if not your only property), bridging finance (0.65-1.2%/month), utilities during works, council tax, estate agent fees on sale (1-2.5%), both sides' legal fees, and CGT on the profit. This calculator captures all of these so your ROI figure reflects reality.
Refurbishment Cost Control
Get three quotes for every trade. Build in a 20% contingency from the start — it's almost always needed. Project-managing trades yourself saves 15-20% vs a main contractor but requires significant time. For a first flip, a JV partner with experience protects you from the mistakes that wipe out margins.