How to Calculate Auction House Flip Profit

A large difference between a buy price and a sell price can look profitable until fees and cost basis are included. A useful flip calculation starts with what you paid and ends with what you actually keep after the Auction House cut.

Basic profit formula

Estimated profit = sale proceeds after the Auction House cut − purchase cost. AZPC's market-guidance model accounts for the 5% Auction House cut when it evaluates a suggested spread.

Example

If an item costs 100g and the modeled sell price is 120g, a 5% cut leaves 114g in modeled sale proceeds. The resulting modeled profit is 14g, not 20g. The return on the original 100g cost is therefore 14%.

Include quantity and open inventory

Suppose you buy ten units at 10g each but sell only six at 14g each. The sold units have a 60g cost basis, while the remaining 40g is still tied up in open inventory. Counting the projected margin on all ten units as completed profit would overstate the result.

Deposits and relisting risk

Auction House deposits can matter when an item expires repeatedly. Even when a deposit is returned after a successful sale, deposits lost on earlier expired auctions reduce the final outcome. Slow-moving inventory also has an opportunity cost because the same gold cannot be used for another trade while it remains invested.

Profit per unit versus total profit

A 2g profit on one item is different from a 2g profit on a stack of twenty. Always keep quantity explicit. Total projected profit is the per-unit result multiplied by the number of units that actually sell at the modeled price.

Projected profit is not realized profit

Until a buyer actually purchases the item and the transaction settles, the result is only a projection. The market can move, auctions can expire, and a seller may need to relist at another price.

Realized vs Unrealized Profit · Evaluate a flip · Check current markets