Fix and Flip Calculator
Estimate your house flip profit, ROI, and cash needed. Built-in 70% Rule check helps you evaluate deals before committing capital.
Deal Numbers
Property
Estimated sale price after all renovations are complete.
Financing
Selling & Holding
Property tax, insurance, utilities, lawn care during renovation.
Quick Tips
- Always add 10-20% contingency to your renovation budget for unexpected issues (foundation, mold, plumbing).
- Hard money loans typically charge 9-15% interest + 2-5 points. Factor these into your financing costs accurately.
- Every extra month of holding eats into profit. Delays are the most common reason flips underperform expectations.
Flip Profit Analysis
ROI
29.3%
Cash Invested
$75,400
Total Costs
$227,900
Sale Price (ARV)
$250,000
70% Rule: FAIL
Cost Breakdown
Important Note
This calculator provides estimates based on your inputs. Actual costs may vary due to unexpected repairs, market conditions, permit requirements, and timeline delays. Always conduct thorough due diligence and consult professionals before committing to a flip.
What Is Fix and Flip?
Fix and flip is a real estate investment strategy where an investor purchases a property — typically below market value due to distress, disrepair, or motivated sellers — renovates it, and resells it at a higher price for profit. The strategy has gained enormous popularity thanks to television shows and the potential for significant returns in a relatively short timeframe, usually 3-6 months.
Success in house flipping requires expertise in three areas: finding undervalued properties (deal sourcing), accurately estimating renovation costs and timelines (project management), and understanding local market values to set the right sale price (market analysis). The biggest risk is overestimating ARV or underestimating renovation costs, which can turn a promising deal into a money-losing project. This calculator helps you model all the variables before you commit any capital.
How to Calculate Fix and Flip Profit
The profit formula accounts for every cost between purchase and sale.
Profit Formula
Net Profit = ARV - Purchase Price - Renovation - Financing - Holding - Selling Costs
ROI = Net Profit / Cash Invested x 100
70% Rule: Max Price = (ARV x 0.70) - Renovation Costs
ARV — After Repair Value (what the home sells for post-renovation)
Cash Invested — Down payment + renovation + closing costs + origination fees
Financing — Loan interest + origination points over the holding period
Start with your ARV estimate based on comparable sales. Subtract your purchase price and renovation budget. Then add financing costs (interest payments and origination fees for the holding period), holding costs (taxes, insurance, utilities), and selling costs (realtor commission, closing costs). The remainder is your net profit. Divide by your total cash invested to get ROI.
Worked Examples
Example 1: Starter Flip ($200K ARV)
Purchase: $120,000 | Reno: $30,000 | ARV: $200,000 | Hold: 4 months
Financing: $4,800 | Holding: $4,000 | Selling: $14,000 | Buy closing: $2,400
Total costs: $175,200 | Net profit: $24,800 | ROI: 40.7% on $61K cash invested
Example 2: Mid-Range Flip ($350K ARV)
Purchase: $200,000 | Reno: $60,000 | ARV: $350,000 | Hold: 6 months
Financing: $8,000 | Holding: $9,000 | Selling: $24,500 | Buy closing: $4,000
Total costs: $305,500 | Net profit: $44,500 | ROI: 42.1% on $105.6K cash
Example 3: Over-Budget Flip (Cautionary Tale)
Purchase: $180,000 | Reno budget: $50,000 (actual: $80,000) | ARV: $280,000 | Hold: 9 months (planned 5)
Extra reno + 4 months extra holding + financing = $40,000 in overruns
Expected profit: $35,000 | Actual profit: -$5,000 (loss). This is why contingency budgets and realistic timelines matter.
Cost Breakdown Comparison
Typical cost distribution for a $250K ARV flip:
| Cost Category | Typical % | Typical $ | Notes |
|---|---|---|---|
| Purchase | 55-65% | $137K-$162K | Biggest cost — negotiate hard |
| Renovation | 15-25% | $37K-$62K | Add 15% contingency |
| Financing | 3-6% | $7K-$15K | Interest + points |
| Holding | 2-5% | $5K-$12K | Tax, insurance, utilities |
| Selling | 6-8% | $15K-$20K | Commission + closing |
When to Use This Calculator
- Evaluating a deal: Before making an offer, plug in the numbers to see if the profit margin is worth the risk and effort.
- Comparing multiple properties: Run each property through the calculator to rank them by ROI and total cash needed.
- Negotiating purchase price: Use the 70% Rule output to set your maximum offer and negotiate with confidence.
- Securing financing: Lenders want to see your deal analysis. This calculator produces the numbers they need to see.
- Post-flip review: After selling, compare actual numbers to your original projections to improve future estimates.
Tips for Profitable Flips
- Buy right — profit is made at purchase. The most important decision is your purchase price. If you overpay, no amount of renovation skill can save the deal. Follow the 70% Rule religiously.
- Get 3 contractor bids minimum. Never rely on a single estimate. Get at least three detailed, written bids for renovation work. Check references and past work for each contractor.
- Budget 15-20% contingency. Unexpected issues are not unexpected — they happen on virtually every flip. Foundation problems, mold, outdated wiring, or plumbing issues can add $10,000-$30,000 to your budget.
- Minimize holding time. Every extra month costs you $1,000-$3,000+ in holding costs and financing. Plan renovations in detail before closing, have contractors lined up, and pull permits early.
- Know your exit before you enter. Understand your local market, have a realistic ARV based on recent comps, and have a backup plan (rent it out) if the market softens during your renovation period.
Frequently Asked Questions
About This Calculator
Free fix and flip calculator for house flipping. Estimate net profit, ROI, and the 70% Rule with detailed cost breakdown for renovation projects.
Frequently Asked Questions
How accurate is the Fix And Flip Calculator for my local market?
This calculator uses national averages and standard real estate formulas. Local market conditions — including property taxes, insurance rates, HOA fees, rental demand, and appreciation rates — can vary significantly by city and neighborhood. For the most accurate results, input your actual local data rather than relying on defaults. Consult a local real estate agent or appraiser for market-specific figures. Property taxes alone can range from 0.3% (Hawaii) to 2.5% (New Jersey) of assessed value, dramatically affecting calculations.
What assumptions does the Fix And Flip Calculator make that I should be aware of?
Key assumptions include: stable property appreciation rates (typically 3-4% default), consistent rental income without extended vacancies, standard maintenance costs (1-2% of property value annually), and current 2025 interest rates. The calculator does not account for major unexpected expenses (foundation repairs, roof replacement), changes in local zoning or regulations, economic downturns affecting property values, or tenant-related issues (evictions, damage). Conservative investors should add 10-20% buffer to expense estimates and use pessimistic scenarios for critical investment decisions.
Should I use this calculator before making a real estate investment decision?
This calculator is an excellent starting point for evaluating potential investments, but should be one of several tools in your decision-making process. Also consider: hiring a professional property inspector ($300-$500), reviewing comparable sales (comps) from the past 6 months, analyzing local rental market data (Zillow, Rentometer), consulting with a real estate attorney for legal considerations, and speaking with local property managers about realistic expense ratios. Never make a six-figure investment decision based solely on calculator outputs — they model best-case scenarios that rarely match reality perfectly.
How do interest rate changes affect the results of this calculation?
Interest rates significantly impact real estate calculations. A 1% rate increase on a $400,000 30-year mortgage increases monthly payments by approximately $240 and total interest paid by $86,000 over the loan term. For investment properties, higher rates reduce cash flow and may push DSCR below lender requirements. When rates rise, property values typically adjust downward to maintain investor returns. Run the calculator at current rates plus 1-2% to stress-test your investment against potential rate increases before committing.
What tax benefits should I consider alongside these calculations?
Real estate offers several tax advantages not fully captured in basic calculators: mortgage interest deduction (up to $750,000 loan), property tax deduction (up to $10,000 SALT cap), depreciation of rental property over 27.5 years (significant paper loss reducing taxable income), 1031 exchange to defer capital gains, pass-through deduction (20% of qualified business income for rental property owners), and cost segregation studies for accelerated depreciation. These benefits can significantly improve after-tax returns. Consult a tax professional familiar with real estate investing for your specific situation.
Alex specializes in personal finance modeling with experience in investment analysis and tax optimization. He ensures every financial calculator follows current IRS guidelines and industry-standard formulas.
- CFA Level II Candidate
- B.S. in Finance, University of Michigan
- 8 years in financial planning tools