Fix and Flip Profit Calculator
Estimate net profit on a flip — purchase price, repairs, holding costs, and resale minus all costs. Includes 70% rule benchmark.
What is Fix and Flip Profit Calculator?
The fix and flip calculator estimates net profit on a real-estate flip. It includes purchase, rehab, holding costs (carrying the property while renovating), financing, and selling costs — and compares against the 70% rule benchmark used by experienced flippers.
Formula
Net profit = ARV − purchase − rehab − holding − financing − selling costs
70% rule: max purchase = (ARV × 0.70) − rehab. Conservative buy threshold to leave room for surprises.
Worked example
$350k ARV, $200k purchase, $50k rehab, 6 months holding × $500, $6k financing, 8% selling:
- Total costs: $200k + $50k + $3k + $6k + $28k = $287k
- Net profit: $63,000
- Cash in: $259k → ROI 24.3%
- 70% rule max purchase: $245k → passes (you paid $200k)
How to use this calculator
- Enter ARV (after-repair value) — what comparable renovated properties sell for.
- Purchase price and rehab budget.
- Estimate holding period — most flips run 4-8 months from close to sale.
- Monthly holding: taxes + insurance + utilities + minor maintenance.
- Financing cost: hard-money loan interest, points, or cash deployment cost.
- Selling costs: 6% commission + 2% closing typical = 8%.
Frequently asked questions
What's the 70% rule?
Don't pay more than 70% of ARV minus rehab costs. Leaves a 30% buffer for selling costs, holding costs, and profit. Conservative — many experienced flippers use 75-80% in hot markets.
Why include selling costs?
They're real money. 6% Realtor commission + 2% closing concessions = 8% of ARV gone. On a $350k flip that's $28,000 — not optional.
Hard money cost?
Hard-money lenders charge 9-15% interest plus 2-4 points on origination. A 6-month $200k loan at 12% with 3 points: $14k+ in financing. Factor accurately.
What about taxes on profit?
Flips are typically taxed as ordinary income (short-term capital gains rates) — 22-37% federal plus state. Plan tax reserves carefully; a $60k pre-tax profit can become $40k after-tax.