Fix & Flip Calculator
Analyze renovation projects, holding costs, and profit margins.
Fix and Flip Profitability
House flipping involves purchasing a property, renovating it, and selling it for a profit within a short timeframe. Speed and accuracy in estimating costs are crucial.
Our calculator helps you determine the maximum purchase price you can offer while maintaining your target profit margin, accounting for holding costs and financing fees.
70% Rule
A common investor guideline: Max Offer = (ARV x 0.70) - Renovation Costs.
ROI (Return on Investment)
Net Profit divided by Total Cash Invested. A key metric for comparing deals.
Holding Costs
Ongoing expenses like taxes, insurance, and utilities paid while you own the property.
How to Use This Calculator
- 1
Set Purchase & Rehab Costs
Enter the purchase price and estimated renovation budget, including a contingency.
- 2
Determine ARV
Input the After Repair Value — what comparable renovated homes sell for in the area.
- 3
Add Holding & Selling Costs
Include loan interest, taxes, insurance, agent commission, and closing fees.
- 4
Calculate Profit
See your net profit, ROI, and whether the deal passes the 70% rule.
Frequently Asked Questions
What is the 70% rule?
The 70% rule states you should pay no more than 70% of the After Repair Value (ARV) minus repair costs. For a home worth $300,000 after repairs needing $40,000 of work, the maximum purchase price would be $170,000. It builds in a margin for holding costs, selling fees, and profit.
How do I estimate rehab costs?
Rehab costs vary by condition and market. Cosmetic updates (paint, flooring, fixtures) might be $20–30 per square foot, while full gut renovations can exceed $75–100 per square foot. Always add a 10–20% contingency for surprises found after opening walls.
What are holding costs in a flip?
Holding costs are everything you pay while owning the property: loan interest, property tax, insurance, utilities, and HOA fees. A six-month flip with $2,500/month in holding costs consumes $15,000 of your profit, which is why speed matters.
What is a realistic profit margin on a flip?
Experienced flippers typically target a net profit of 10–20% of the ARV after all costs. Thinner margins leave no room for market dips or budget overruns — if the numbers only work in a best-case scenario, most investors walk away.