Profit and Loss Calculator for Real Estate

How to Calculate Profit and Loss in Real Estate

1. Calculate Total Expenses:\text{Total Expenses} = \text{Purchase Price} + \text{Closing Costs} + \text{Renovation Costs} + \text{Sale Commission (in USD)}
   • Sale Commission (in USD): \text{Sale Commission} = \text{Sale Price} \times \frac{\text{Commission Rate}}{100}
2. Calculate Profit or Loss: \text{Profit/Loss} = \text{Sale Price} - \text{Total Expenses}

Example:

Imagine you purchased a property for $250,000 with the following additional costs:

• Closing Costs: $5,000
• Renovation Costs: $20,000
• Sale Price: $300,000
• Commission Rate: 5%

Calculate Total Expenses

Calculate Profit or Loss

The transaction resulted in a $10,000 profit.