Fix & Flip Calculator
A flip looks profitable on a napkin. The actual margin lives or dies on holding costs and selling costs, which most beginners undercount. This calculator lays out every line — so the profit number is honest before you offer.
Flip Inputs
Enter ARV, purchase, rehab, and holding details. Selling costs default to 8% (agent + concessions).
Hard money interest + taxes + insurance + utilities during rehab.
Agent commission (5–6%) + closing costs + concessions.
Estimated Profit
23.94% return on cash invested
The full flip formula
The four cost buckets
- Buy-side closing: ~2% of purchase price (title, escrow, inspection, recording).
- Rehab: the contractor budget. Pad 15–20% for surprises.
- Holding: hard-money interest + taxes + insurance + utilities, monthly.
- Sell-side closing: 8% of ARV (commission + closing + transfer tax + concessions).
The 70% rule sanity check
If your purchase price exceeds 70% of ARV minus rehab, the math probably doesn’t work. Use the 70% Rule Calculator as a fast pre-screen before you bother with a full flip analysis.
Frequently asked questions
How is flip profit calculated?
Profit = ARV − Purchase Price − Buying Closing Costs − Rehab Cost − Holding Costs − Selling Closing Costs. The big four lines investors miss: holding costs (interest + taxes + insurance + utilities during rehab), selling costs (8% typical), buy-side closing (2% typical), and the rehab contingency.
What are holding costs?
Anything you pay while you own the property pre-sale: hard-money interest (often 9–12% interest-only), property taxes, insurance, utilities, lawn care. On a 6-month flip, holding costs typically run $8,000–$15,000.
How big should my profit margin be?
Most flippers target $25k–$50k minimum profit per deal, or 15–20% return on total cash invested. Less than $20k is a small margin for what can go wrong: contractor delays, market slowdowns, surprise structural issues.
What about hard-money costs?
Hard money typically charges 2–3 points upfront and 9–12% interest, interest-only, during the term. A $200,000 hard-money loan for 6 months at 11% with 2 points: $4,000 origination + ~$11,000 interest = $15,000 total. Build it into holding costs.
Why are selling costs 8%?
Listing agent commission (3%) + buyer’s agent commission (3%) + closing costs you contribute toward (1–2%) + transfer tax (varies by state). 8% is a reasonable national average; 6% if you list FSBO and skip your own agent.
What’s "return on cost" vs. "ROI on cash"?
ROI on cash = profit ÷ total cash invested (price + rehab + holding + closing). Return on cost = profit ÷ (price + rehab) only. Return on cost is the cleaner deal-quality metric; ROI on cash includes financing efficiency.
How accurate are the rehab estimates?
They’re typically the biggest source of profit erosion. Get 2–3 contractor walk-throughs and pad your estimate by 15–20%. Surprise items (foundation, sewer, asbestos, roof structure) appear in 30%+ of flips. Build a real contingency line.
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