BiggerPockets Fix and Flip Calculator

[Terrance Harrington]

Hey Everyone, I'm testing out the fix and flip calculator and I don't understand how annualized return of investment is calculated? Is there a formula for this calculation? 

Here is a sample calculation that I've been trying to breakdown on paper:

Purchase Price: $625,800.00

Purchase Closing Costs: $2,500.00

Rehab cost: $18,000

Monthly Holding Costs: $3,000.00

Total Days Held: 72

Holding Cost Total: $7,200.00

Sales Price After Fix Up: $750,000.00

All Selling Closing Costs: $1,500.00

Real Estate Agent Fee: $45,000

Sales Costs Total: $703,500.00

Total Profit for Flip: $50,000

Return on Investment for Flip

7.65% Immediate

38.79% Annualized

I understand how to calculate the immediate ROI but not the Annualized ROI any assistance would be greatly appreciated. Thanks in advance.