Home / Fix and flip
Fix and flip calculator
Purchase, rehab, hard-money loan, months held and selling costs in one place. See net profit, cash you need to bring, ROI, and whether the deal passes the 70% rule.
Healthy margin. 70% rule maximum offer: $179,000, so your price is $1,000 over the rule.
- Purchase $180,000
- Rehab + contingency $49,500
- Financing (points + interest) $13,705
- Holding $5,400
- Closing + selling $26,000
- Profit $45,395
Loan $195,075 · points $3,902 · interest $9,803 (interest-only, rehab drawn in stages).
What if it goes wrong?
Net profit when the sale price comes in lower or the rehab runs over. Most failed flips are a combination of both.
| Rehab overrun ↓ / ARV → | -10% | -5% | As planned | +5% |
|---|---|---|---|---|
| On budget | $15,635 | $30,515 | $45,395 | $60,275 |
| +15% | $7,876 | $22,756 | $37,636 | $52,516 |
| +30% | $116 | $14,996 | $29,876 | $44,756 |
How the numbers are calculated
Net profit = ARV − purchase − rehab (with contingency) − buy closing − loan points − interest − holding costs − selling costs. Cash needed is everything you pay before the sale minus what the lender funds. ROI is profit divided by cash needed; annualized compounds that over the months held, which is why speed matters as much as margin.
Interest is modelled as interest-only, with the purchase share funded at closing and rehab funds released in draws (so on average about 60% of the rehab loan is outstanding). Your lender's draw schedule and fees may differ.
Which repairs are worth doing on a flip? Buyers pay most for kitchens, baths, flooring and curb appeal; see which improvements add the most value and price the work with the renovation cost calculator.
Frequently asked questions
What is the 70% rule for flipping houses?
Pay no more than 70% of the after repair value (ARV) minus repair costs. On a $300,000 ARV needing $40,000 of work, that is 0.70 × 300,000 − 40,000 = $170,000. The other 30% is meant to absorb financing, holding, selling costs and profit.
How much does it cost to flip a 1,500 sq ft house?
Rehab alone commonly runs $20–$60 per sq ft for cosmetic work and $60–$150 for a heavy rehab, so roughly $30,000–$225,000 on 1,500 sq ft, before purchase, loan, holding and selling costs. Use the renovation cost calculator for a line-item estimate.
Is house flipping actually profitable?
It can be, but margins are thinner than TV suggests. ATTOM's quarterly home-flipping reports track the gross profit (resale minus purchase price) on US flips; that figure does not deduct rehab, financing or selling costs, which is why a full calculator like this one matters.
What is a good profit margin on a flip?
Many investors look for a net profit of at least 10–15% of ARV, or $25,000–$30,000 on a typical house, so a single surprise (foundation, sewer line, a slow sale) does not wipe out the deal.
How does hard money change the numbers?
Hard-money lenders typically lend a share of purchase plus rehab (loan-to-cost) at higher interest rates plus upfront points. Interest-only payments run every month you hold the property, so a two-month delay can cost thousands. Change the months slider to see it.
What costs do first-time flippers forget?
Buy-side closing costs, loan points, utilities and insurance on a vacant house, property taxes during the hold, staging, seller concessions and the agent commission at sale.