INVEST SMARTER IN HOUSTON
Construction ROI
Calculator
Plan your next remodel or new build. Compare project costs, financing, and resale value to see your estimated profit or loss.
Arash Asgharian
Arash Asgharian · Real Estate Broker
Arrive Houston Group by KW Memorial
Project assumptions
Choose your project and enter your numbers. Results update as you type. All amounts are in US dollars. Leave costs that do not apply blank.
Cost breakdown
What if things change?
Each scenario changes one assumption. The combined scenario applies all three changes.
| Scenario | Net profit / loss |
|---|
Understand your construction investment
How are profit, ROI and margin calculated?
Net profit equals sale price minus acquisition, construction, soft costs, contingency, holding costs, financing costs and selling costs. ROI equals net profit divided by estimated cash required. Profit margin equals net profit divided by sale price. These are total project returns before income tax, not annual returns.
How is financing handled?
Interest equals average outstanding loan balance × annual interest rate × project months ÷ 12. Loan points apply to total principal. Cash required equals project costs before sale, including interest and fees, minus borrowed principal. Sale proceeds after selling costs and loan payoff are shown in the breakdown. Principal is a funding source and repayment, not an additional project expense. This model assumes interest-only borrowing with principal repaid at sale. It excludes amortization, capitalized interest and detailed draw schedules. Cash required is a funding estimate, not a month-by-month peak cash forecast; lender draw timing can increase cash needs.
What is included in break-even?
Break-even sale price equals project costs before sale plus fixed selling costs, divided by one minus the selling-cost percentage. It includes the entered contingency as fully spent. Unspent contingency would improve actual profit. No rental income, tax benefits, appreciation or income tax is included.
What should investors verify?
Verify comparable sales, contractor bids, scope, permits, engineering, utilities, insurance, taxes, financing terms and a realistic selling timeline. Include every cost once. Sample numbers are illustrations. Costs, completion dates and resale prices may change. These estimates are not a guarantee, appraisal, loan quote, buy recommendation, or financial, tax or legal advice. Consult qualified professionals before committing.
Privacy: entering numbers in this calculator does not send a calculation to Arrive Houston Group. Calculations run in your browser. Contact us separately if you would like to discuss your project.
Explore rental cash flow or schedule a consultation with Arash Asgharian, Real Estate Broker · Arrive Houston Group by KW Memorial.