Fix and Flip Calculator

Evaluate a potential fix-and-flip deal by calculating your total investment, projected profit, and return on investment. This calculator accounts for purchase price, rehab costs, holding expenses, and selling costs so you can quickly determine whether a flip is worth pursuing.

The Fix and Flip Calculator estimates your total profit and return on investment for a house-flipping project by working through every cost category from acquisition to sale. First, it establishes your total acquisition cost. This is the purchase price of the property plus your estimated rehab budget. These two figures represent the capital you need to deploy before the property is ready to sell. Next, the calculator determines your holding costs. Holding a property during renovation ties up capital and incurs ongoing expenses such as loan interest, insurance, property taxes, and utilities. You enter the number of months you expect to hold the property and your estimated monthly holding costs. The calculator multiplies these to get your total holding expense. For the financing component, it applies your annual financing cost percentage to the purchase price for the holding period. On the exit side, the calculator computes your selling costs as a percentage of the after-repair value. Selling costs typically include real estate agent commissions, closing costs, title insurance, and transfer taxes. A combined figure of 8-10% is common when using a listing agent. Your total project cost is the sum of the purchase price, rehab cost, total holding costs, financing costs, and selling costs. Your projected profit is the after-repair value minus this total project cost. The calculator also computes your return on investment by dividing the profit by your total cash invested. This gives you a clear picture of whether the deal generates enough profit to justify the risk, time, and effort involved in a fix-and-flip project.

The 70% rule is a widely used guideline for evaluating flip deals: your maximum allowable offer should be 70% of the after-repair value minus the estimated rehab cost. For example, if a property has an ARV of $300,000 and needs $50,000 in repairs, you should pay no more than $160,000. This margin accounts for holding costs, selling costs, and profit. While the rule is a useful quick filter, always run the full numbers through this calculator to confirm the deal works for your specific situation.

Accurate rehab estimates separate profitable flippers from those who lose money. Walk the property with a contractor before making an offer and get line-item bids for every scope of work. Add a contingency of 10-20% for unexpected issues like mold, termite damage, or outdated plumbing hidden behind walls. Track actual costs versus estimates on every project to improve your budgeting accuracy over time.

Holding costs are the silent profit killer in fix-and-flip deals. Every month of delay adds mortgage payments, insurance, taxes, and utilities to your total cost. Create a detailed renovation timeline before closing and build in a buffer of one to two extra months. The fastest path to higher returns is reducing your holding period through efficient project management and having contractors lined up before you close.

Your after-repair value estimate must be grounded in recent comparable sales, not optimistic projections. Pull comps from the last 90 days within a half-mile radius and adjust for differences in square footage, lot size, and finishes. Overestimating the ARV is the most common mistake in flipping and can turn a projected profit into an actual loss. Consider getting a broker price opinion before committing to a deal.

Most experienced flippers target a net profit of at least 10-15% of the after-repair value, or a minimum dollar amount of $25,000-$40,000 per project. The right target depends on the deal size and your local market. Smaller deals often require a higher percentage to justify the time and risk involved.

Walk the property with a licensed contractor and get itemized bids for each area of work including kitchen, bathrooms, flooring, paint, roof, and mechanicals. Use cost-per-square-foot benchmarks from recent projects as a sanity check. Always add a 10-20% contingency for unforeseen issues discovered during demolition or inspection.

Plan for 8-10% of the sale price to cover real estate agent commissions (typically 5-6%), closing costs (1-2%), title insurance, transfer taxes, and any buyer concessions. If you sell without an agent, you can reduce this to 3-5%, but factor in the additional time and marketing expense of a for-sale-by-owner approach.

Most flips take 4-8 months from purchase to sale. Light cosmetic renovations may be completed in 2-3 months, while major rehabs involving structural work, additions, or permit-intensive projects can take 6-12 months. Always add 1-2 months beyond your renovation timeline for listing, showing, and closing with a buyer.

This calculator provides estimates for informational purposes only. Results are based on the inputs you provide and standard financial formulas. Actual amounts may vary based on your specific situation, location, lender requirements, and market conditions. This is not financial, tax, or legal advice. Always consult with qualified professionals before making real estate or financial decisions.

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Net Profit

$12,400.00

Total Project Cost$287,600.00
Gross Profit$70,000.00
ROI0.04%
Profit Margin0.04%

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