Calculate house flipping ROI and profitability with our free fix and flip calculator. Estimate costs, returns, ARV, and net profits for your real estate investment. Includes 70% rule checker, loan calculator, and detailed cost breakdown for flipping houses.
Our free fix and flip calculator uses industry-standard formulas to calculate house flipping ROI, net profits, and total costs. Understanding these formulas helps you make informed real estate investment decisions.
Net Profit = After Repair Value (ARV) - Total CostsROI = (Net Profit / Total Cash Invested) × 100Maximum Purchase Price = (ARV × 70%) - Rehab CostsTotal Costs = Purchase + Rehab + Holding + Closing + Selling CostsResearch comparable sold properties (comps) in the neighborhood. Find 3-5 similar homes sold within last 6 months. Average their prices to estimate After Repair Value (ARV) - what your property will sell for after renovations.
Get estimates from 3+ contractors for renovation work. Create detailed scope including materials, labor, permits. Add 10-20% contingency for unexpected issues. Light rehabs: $10-25/sq ft, Heavy rehabs: $40-75/sq ft.
Calculate maximum purchase price using 70% rule: (ARV × 0.70) - Rehab Costs. This ensures profitable flip accounting for all costs and risks. Example: $300K ARV - $40K rehab = $170K maximum offer.
Include closing costs (2-5%), holding costs (utilities, taxes, insurance), loan interest, realtor fees (5-6%), and miscellaneous expenses. Enter all values in calculator for accurate profit and ROI analysis.
Never pay more than 70% of ARV minus rehab costs to ensure profitability.
Aim for ROI above 20% to account for risks and unexpected costs.
Always budget extra for unexpected repairs and cost overruns.
Complete flips in 3-6 months to reduce holding costs and maximize returns.
Use recent sales (3-6 months) of similar properties for accurate ARV.
Compare 3+ contractor estimates to get competitive pricing and avoid overpaying.
A fix and flip calculator helps real estate investors estimate the profitability of buying, renovating, and selling a property. It calculates potential returns, costs, and ROI based on purchase price, rehab costs, and resale value.
ROI is calculated as (Net Profit / Total Cash Invested) × 100. Net profit is the difference between the after repair value and all costs. Total cash invested includes down payment, closing costs, holding costs, and other expenses.
Holding costs typically range from 0.5% to 1.5% of the total acquisition cost per month. This includes property taxes, insurance, utilities, and maintenance during the rehab and holding period.
Rehab costs vary widely but typically range from 20-40% of the purchase price for a standard flip. Consider getting multiple contractor estimates and add 10-20% contingency for unexpected issues.
The 70% rule states you should pay no more than 70% of the after repair value minus rehab costs. For example, if ARV is $300,000 and rehab costs $40,000, you shouldn't pay more than $200,000 for the property.
ARV is determined by researching comparable recently sold properties (comps) in the same neighborhood that have similar features and condition to what your property will be after renovations.
Common options include conventional loans, hard money loans, private money lenders, and home equity lines of credit. Hard money loans are popular for flips due to faster approval and funding.
Most flips take 3-6 months from purchase to sale. This includes 1-2 months for rehab and 1-2 months on the market. Longer timelines increase holding costs and reduce profitability.
To calculate fix and flip profitability: 1) Determine After Repair Value (ARV) using comps, 2) Calculate total costs (purchase + rehab + holding + selling costs), 3) Subtract total costs from ARV to get net profit, 4) Divide net profit by cash invested and multiply by 100 for ROI percentage.
Holding costs include property taxes, insurance, utilities, HOA fees, maintenance, lawn care, and loan interest during the renovation and market period. Typically 0.5-1.5% of property value per month. Use our calculator to estimate these costs accurately.
A fix and flip loan calculator computes your loan amount, monthly payments, interest charges, and origination fees. It factors in your down payment percentage, interest rate, and loan term. Hard money loans typically require 20-30% down with 8-12% interest rates.
ROI (Return on Investment) is net profit divided by total cash invested. ROE (Return on Equity) is net profit divided by your equity (down payment + cash for rehab). ROE is typically higher because it excludes borrowed money from the calculation.
Calculate ARV by finding 3-5 comparable sold properties (comps) in the same neighborhood with similar features. Average their sale prices and adjust for differences. Use properties sold within the last 3-6 months. ARV determines your maximum purchase price using the 70% rule.
Closing costs on purchase average 2-5% of purchase price, including title insurance, escrow fees, appraisal, and inspection. Selling costs include 5-6% realtor commission, transfer taxes (varies by location), and title fees. Our calculator includes all these costs.
The 70% rule calculator determines your maximum offer price: Maximum Purchase Price = (ARV × 70%) - Rehab Costs. If ARV is $300,000 and rehab is $40,000, don't pay more than $170,000. Our calculator automatically checks if your purchase price follows this rule.
A good ROI for fix and flip is typically 20-30% or higher. Experienced investors target 30-40% ROI. Anything below 15% may not be worth the risk and effort. Use our calculator to analyze if your deal meets your target return requirements.
Calculate rehab costs by: 1) Getting estimates from 3+ contractors, 2) Creating detailed scope of work, 3) Adding 10-20% contingency for unexpected issues, 4) Factoring in permits and inspections. Light rehabs cost $10-25 per sq ft, heavy rehabs $40-75 per sq ft.
Hard money loans are most popular for fix and flip (9-12% interest, 12-month term). Other options: private money, home equity line of credit (HELOC), conventional loans with renovation contingency, or cash. Hard money offers fast approval but higher costs reflected in our calculator.
Net Profit = After Repair Value (ARV) - Total Costs. Total costs include purchase price, rehab, closing costs (buy + sell), holding costs, loan interest, realtor fees, and miscellaneous expenses. Our calculator automatically computes net profit from all input variables.