How FlipMetric calculates deals

Flip formulas

• Loan amount (hard money) ≈ (purchase × LTP%) + (rehab × rehab financed%)
• Financing cost ≈ interest over project months + points + lender fees
• Holding cost ≈ (tax + insurance + utilities + HOA) × project months
• Total project cost ≈ purchase + rehab + buying costs + holding + financing + selling costs
• Net profit ≈ ARV − total project cost
• ROI ≈ net profit ÷ cash invested
• MAO ≈ (ARV × MAO%) − rehab
• Break-even sale price accounts for selling cost percentages so profit is zero at that sale price

Rental formulas

• Effective income accounts for vacancy on rent (and other income as modeled)
• NOI ≈ effective income − operating expenses
• Annual cash flow reflects NOI after debt service (per engine)
• Cash-on-cash ≈ annual cash flow ÷ cash invested
• Cap rate ≈ NOI ÷ purchase price
• DSCR ≈ NOI ÷ annual debt service (stored as ratio × 10,000 in the app)

For exact edge cases (cash vs hard money cash invested, amortization, etc.), rely on the live calculator output and unit tests in lib/calc. Money is stored as integer cents; rates as basis points.