Red sorghum (Sorghum bicolor L.) is a local cereal with significant potential as an alternative food source due to its high nutritional value, gluten-free properties, and adaptability to marginal lands and arid climates. Utilizing red sorghum in flour form can enhance added value and support local food diversification, such as in the production of kue kipas—a traditional snack with economic potential. This study aims to analyze the effect of red sorghum flour substitution on the chemical, physical, and organoleptic characteristics of kue kipas, determine the optimal formulation, and evaluate the financial feasibility of the product. The research was conducted from June to August 2025 at the Process Engineering Laboratory, Faculty of Agriculture, University of Tribhuwana Tunggadewi, Malang. Parameters observed included moisture, ash, and protein content, texture, and sensory properties (color, aroma, taste, and texture). Data were analyzed using ANOVA followed by the Least Significant Difference (LSD) test at a 5% significance level. The optimal treatment was determined using the effectiveness index method, while financial feasibility was evaluated through Cost of Production, BEP, and the R/C ratio. The results indicated that red sorghum flour substitution significantly affected the moisture , ash, and texture of the kue kipas. Increasing the proportion of sorghum flour tended to increase the ash content and textural hardness. The optimal formulation was achieved by treatment J3 (60% wheat: 30% sorghum: 10% cornstarch), which produced a balanced product quality and high panelist acceptance. Financial analysis confirms that red sorghum flour-based kue kipas is feasible for business.