Fix and Flip Calculator

People also ask

What is a fix and flip calculator?

A fix and flip calculator estimates the profit on buying, renovating, and reselling a property. It subtracts every major cost: purchase, closing, rehab, monthly holding costs, hard-money interest and points, and selling costs: from the expected resale price (ARV), then expresses the result as net profit, ROI on the cash you invested, and an annualized return based on how many months the project takes.

What is the 70% rule in house flipping?

The 70% rule says pay no more than 70% of the after repair value minus rehab costs. For a house with a $310,000 ARV needing $55,000 of work, the maximum offer is $310,000 x 0.70 - $55,000 = $162,000. The 30% margin covers selling costs, financing, holding, and profit. It is a screen, not a law, experienced flippers in competitive markets sometimes pay 75% to 80% of ARV and accept thinner margins.

How much profit should a house flip make?

Most experienced flippers target a net profit of at least 10% of ARV, or roughly $30,000+ on a mid-priced home, with ROI on invested cash of 20% to 40% per project. Industry gross-margin surveys report higher averages, but those figures exclude rehab and holding costs. A flip projecting under $15,000 of net profit rarely survives contact with a surprise foundation issue or a slow resale.

How do you calculate ROI on a house flip?

Divide net profit by the cash you actually invested: the down payment (purchase minus loan), closing costs, rehab, holding costs, and financing fees. Because flips complete in months rather than years, the annualized figure is what makes flips comparable to other investments, a 42% ROI earned in 6 months annualizes to over 100%, which is why flippers accept the risk and the work.

What does hard money cost in 2026?

Typical 2026 hard money terms are 10% to 12% annual interest charged interest-only, plus 1 to 3 origination points, funding 80% to 90% of the purchase price and often a portion of rehab. On a $144,500 loan held six months at 11% with 2 points, financing costs about $10,800. Rates run above conventional mortgages because the loans are short, fast, and underwritten to the asset.

What are holding costs on a flip?

Holding costs are everything it takes to own the property while you renovate and sell: property taxes, builder's-risk or vacant-home insurance, utilities, lawn care, and HOA dues. They commonly run $700 to $1,200 per month on a mid-priced single-family home. Combined with hard-money interest, each extra month typically costs $2,000 to $3,500, which is why speed matters more than most beginners expect.

How long does a fix and flip take?

A typical flip runs 4 to 9 months from purchase to resale: roughly 2 to 4 months of renovation, then 1 to 3 months to list, contract, and close. Permit-heavy projects or structural work can push past a year. The calculator annualizes your ROI using the holding months you enter, so you can see exactly how much a two-month delay costs in both dollars and annualized return.

How are house flipping profits taxed?

Flip profits are generally taxed as ordinary income, not long-term capital gains, because the property is held for resale rather than investment, and active flippers classified as dealers can owe self-employment tax on top. Holding under 12 months also rules out long-term capital gains treatment. Many flippers lose 30% to 40% of gross profit to taxes, so underwrite deals on after-tax numbers and talk to a CPA about entity structure.

What is a break-even sale price?

The break-even sale price is the resale price at which you make exactly zero: it covers purchase, closing, rehab, holding, and financing costs, grossed up for the selling costs that scale with price. If your break-even is $264,000 against a $310,000 ARV, the market can soften about 15% before you lose money. A break-even within a few percent of ARV means the deal has almost no margin of safety.

Should I flip the house or BRRRR it?

Flipping converts forced appreciation into cash profit now, taxed as ordinary income, and ends your exposure. A BRRRR keeps the property: you refinance to recover capital and hold it as a cash-flowing rental, deferring tax. The deciding factor is usually the rent: if market rent supports the post-refinance mortgage with a DSCR above roughly 1.1x, BRRRR builds more long-term wealth; if it cannot, sell the flip and move on.

What are the biggest risks in flipping houses?

The big four are overestimating ARV, underestimating rehab, timeline slippage, and market movement during the hold. Each compounds the others: a rehab overrun extends the timeline, which adds holding and interest costs, which shrinks the cushion an optimistic ARV already thinned. The defenses are boring and effective: conservative comps, contractor bids before closing, a 10% to 20% contingency, and a break-even price you can live with.