Flip vs hold calculator for property
Flipping within two years pays short-term capital gains at slab rate on the whole profit; holding past 24 months qualifies for 12.5% long-term tax and adds rent. This comparison puts both paths on an annualised basis so a quick ₹10 lakh profit can be judged against years of slower gains.
- Flip: profit after tax
- ₹5.12 L
- Flip: annualised return
- 8.97%
- Hold: profit after tax (rent + appreciation)
- ₹25.1 L
- Hold: annualised return
- 6.75%
- Flip: short-term tax
- ₹2.32 L
- Hold: long-term tax at 12.5%
- ₹2.63 L
Copy link to this calculation · JSON API · Estimates only; verify rates with the source below.
How it is calculated
Flip: profit = sale − selling cost − cost − renovation, taxed at slab rate (+4% cess) as short-term gain; annualised = (1 + profit ÷ cash in)^(12 ÷ months) − 1. Hold: sale after appreciation, long-term tax at 12.5% (+cess) without indexation, plus rent after the 30% standard deduction and slab tax; annualised over the hold period. Loan effects are ignored.
Worked example
₹65 lakh cost + ₹4 lakh renovation flipped at ₹78 lakh in 10 months: ₹7.44 lakh gain, ₹2.32 lakh tax at 30%, ₹5.1 lakh net, about 9% annualised. Held 5 years at 6% appreciation with ₹18,000 rent: ₹20.2 lakh gain, ₹2.6 lakh tax, plus net rent, ₹25.1 lakh net, about 6.8% annualised. The flip looks better per year, but it assumes a buyer at ₹78 lakh within the year.
Frequently asked questions
Is flipping property taxed more in India?
Yes. Sold within 24 months, the whole gain is short-term and taxed at your slab (up to 30%); after 24 months it is long-term at 12.5%.
What makes flips fail in NCR?
Transaction costs: stamp duty and registration of about 8% on entry and 1–2% brokerage on exit eat most of a sub-20% price gain, plus slow resale in oversupplied sectors.
Does the hold case include a loan?
No. A loan raises the return on your own money when appreciation beats the loan rate; model it with the ROI calculator.
Sources and what to verify: Income-tax Act ss.2(42A), 111A/112.
Estimates for planning only; not financial, legal or tax advice. Figures reflect common practice and published rates as of November 2026. Found an outdated rate? Email hello@zeorent.com.