Margin after all the costs.
A worked example
Starting figures
- Purchase
- $210,000
- Renovation
- $55,000
- Holding costs
- $9,000
- Selling costs
- $14,000
- Sale price
- $330,000
What it returns
- Profit
- $42,000
- Return on cost
- 14.6%
- Total cost
- $288,000
- Break-even sale price
- $288,000
How to read the results
With the defaults above, profit works out at $42,000.