Fix and Flip Calculator
Estimate the profit and return on investment for a fix-and-flip deal. Enter purchase price, repair costs, and projected sale price to see your bottom line, ROI, and whether the deal passes the 70% rule.
Deal Breakdown
Scope: Supporting copy refresh only. The calculator tool itself (inputs, formulas, logic) is owned by CTO and is NOT changed here.
Estimating flip profit before you make an offer
The single biggest mistake in a fix-and-flip is buying at the wrong price. Once you close, the purchase price is fixed, but every other number — repairs, the months you hold the property, the loan, the eventual sale — keeps moving. A flip calculator exists to force those moving numbers onto the table before you commit, so the deal either pencils out or it doesn’t.
This tool estimates your profit by starting from what the finished, renovated home is expected to sell for and then subtracting everything it costs to get there. It is a planning aid, not an appraisal or a guarantee. Your actual result depends on your local market, your contractor’s bids, and how long the project actually takes. Use the estimate to compare deals and to sanity-check an offer, not as a promise of return.
Educational estimate, not investment advice. This tool is for general education only — your actual results depend on your specific inputs, financing, and local market conditions. It is not investment, tax, or financial advice.
How this calculator works
The calculator works backward from the finished value:
Profit = After-Repair Value (ARV) − purchase price − rehab costs − holding costs − financing costs − selling costs
Each term:
- After-Repair Value (ARV) — what the property is expected to be worth once all planned renovations are complete. [verify — ARV definition, RealEstateSkills, 2026]
- Purchase price — what you pay to acquire the property.
- Rehab costs — materials and labor for the renovation, ideally from contractor bids rather than a guess.
- Holding costs — everything you pay while you own it: property taxes, insurance, utilities, and loan interest across the project timeline.
- Financing costs — lender points and origination fees charged upfront, separate from the monthly interest counted in holding costs.
- Selling costs — agent commissions, closing costs, and seller concessions when you sell.
Worked example
Say a property has an ARV of $300,000. You buy it for $165,000, budget $45,000 in rehab, and expect to hold it for four months.
| Line | Amount |
|---|---|
| After-Repair Value (ARV) | $300,000 |
| − Purchase price | −$165,000 |
| − Rehab costs | −$45,000 |
| − Holding costs (~4 months) | −$10,000 |
| − Financing costs (points/fees) | −$6,000 |
| − Selling costs (~6% of sale) | −$18,000 |
| Estimated profit | $56,000 |
The holding, financing, and selling figures above are illustrative placeholders to show the structure of the math — plug in your own quotes. Small changes to any line, especially rehab and holding, can swing the profit meaningfully.
The 70% rule
A common rule-of-thumb guideline among flippers is the 70% rule, which says your maximum offer should be roughly:
Maximum offer ≈ (ARV × 70%) − rehab costs [verify — 70% rule formula, RealEstateSkills / Lima One, 2026]
The idea is to leave about a 30% cushion below ARV to absorb all the “soft” costs a beginner forgets — closing costs, lender fees, holding costs, and selling commissions — plus profit. [verify — purpose of the 30% margin, RealEstateSkills, 2026]
Using our example: ($300,000 × 0.70) − $45,000 = $165,000 maximum offer.
Treat 70% as a starting screen, not a law. It is a rule of thumb, not a guarantee. In hot markets, experienced flippers sometimes stretch to 75%; in thin-margin or high-cost markets they may need 65% or lower to be safe. Notably, 2026 flip margins are reported to be near their lowest since 2008, with operating expenses eating an estimated 20–33% of ARV — which argues for more cushion, not less. [verify — 2026 margin/opex context, WeLend / Amerisave, 2026] Always confirm with your own full cost breakdown.
Costs flippers underestimate
- Holding / carry costs. Taxes, insurance, and utilities accrue every month you own the property. Vacant-property insurance alone commonly runs $150–$400/month and utilities $150–$300/month; total monthly carry on a typical flip is often cited around $2,000–$4,500. [verify — holding cost ranges, Amerisave, 2026] A project that runs one month long can add several thousand dollars.
- Financing points. Hard-money lenders charge upfront “points” — one point = 1% of the loan — commonly 2–3% of the loan amount, due at closing before work starts. On a $200,000 loan, three points is $6,000. [verify — points 2–3%, Amerisave, 2026]
- Selling costs. Agent commissions plus closing costs and concessions often total roughly 6–8% of the sale price. Easy to forget when you’re focused on the buy.
- Overruns. Rehab bids slip and timelines stretch. Many experienced flippers add a contingency (commonly ~10–20% of the rehab budget) so a surprise doesn’t erase the profit.
Frequently Asked Questions
What is ARV (After-Repair Value)?
ARV is what the property is expected to be worth after all planned renovations are complete. It is typically estimated from recently sold comparable renovated homes in the same area, not from the property’s current condition. [verify — ARV definition, RealEstateSkills, 2026]
What is the 70% rule in house flipping?
It’s a guideline that says a flipper should pay no more than 70% of a property’s ARV minus estimated repair costs, i.e. Maximum Offer ≈ (ARV × 0.70) − rehab. The 30% gap is meant to cover soft costs and profit. It’s a rough screen, not a guarantee. [verify — 70% rule, Lima One / RealEstateSkills, 2026]
What are typical holding costs on a flip?
They vary widely by market and property, but common cited ranges are roughly $2,000–$4,500 per month all-in, including loan interest, vacant-property insurance ($150–$400/mo), utilities ($150–$300/mo), and taxes. [verify — holding cost ranges, Amerisave, 2026] Longer timelines mean higher carry.
How does hard-money financing work for flips?
Hard-money loans are short-term, asset-based loans used to fund the purchase and often part of the rehab. In 2025–2026 rates are commonly cited in roughly the 8–13% range (occasionally higher), plus 2–3 upfront points. [verify — rates 8–13% and 2–3 points, Amerisave, 2026] The high cost is why holding time matters so much.
Is the calculator’s profit number a guarantee?
No. It’s an estimate based on the figures you enter. Real outcomes depend on accurate ARV, real contractor bids, actual timeline, and market conditions at sale.
Should I only buy deals that pass the 70% rule?
Not necessarily — the rule is a first screen. A full line-by-line cost breakdown (what this calculator does) is more reliable than any single ratio. Some good deals fail the 70% rule; some deals that pass it still lose money once real costs land.
Last reviewed July 3, 2026 by the askdoss Editorial Team. This calculator and its supporting information are for general educational purposes only and are not financial, tax, legal, or investment advice. Figures cited are estimates that change over time — verify current numbers with the relevant institution or a qualified professional before making decisions.