Free investor tool
Fix and Flip Calculator
Run the numbers on a flip before you make an offer. Enter the purchase, rehab, financing and how long you expect to hold the property. The calculator shows your total cost, cash needed, profit and return, and checks the price against the 70% rule.
Results
Interest is figured as interest-only on the full loan for every month held. Monthly holding costs cover taxes, insurance, utilities and HOA dues.
How the Fix and Flip Calculator Works
Total project cost is the purchase price plus purchase closing costs, rehab, lender points, interest, monthly holding costs and selling costs. Net profit is ARV minus that total.
Cash needed is everything the loan doesn't cover: the down payment, the unfinanced share of the rehab, closing costs, points, interest and holding costs. Return on cash divides profit by that amount, which is why leverage raises the percentage and also the risk.
Selling costs default to 8% of ARV for agent commissions, the buyer's closing credits and seller closing costs. Change it if you sell another way.
FAQ
What is a good profit on a fix and flip?
Many investors look for at least 10% to 15% of ARV in net profit, or a fixed dollar floor, so a surprise in the rehab or a slower sale doesn't erase the deal.
Why does the calculator check the 70% rule?
The 70% rule is a quick screen: pay no more than 70% of ARV minus repairs. A deal can still work above it, but the margin for error is thinner.
Does this include taxes on the profit?
No. Profit here is before income taxes. Talk to a tax professional about how flips are taxed in your situation.
Related
- ARV calculator: estimate after repair value from comps
- The 70% rule: how investors set a maximum offer
- Transactional funding: short-term money for double closings
- Pallas Investor Deals: off-market properties in 13 states
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