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Simple Calculators

Fix and Flip Calculator

Analyze house flipping deals — calculate projected profit, ROI, annualized return, and check the 70% rule with all costs included.

Deal Basics

Estimated market value after all repairs

Financing & Closing Costs

Hard money loans: ~10–15% annual

Typical: 2% of purchase price

Agent fees + transfer taxes: ~6%

Monthly Holding Costs

Related calculators

All real estate

Quick summary

Fix and flip investing profits depend on buying right (the 70% rule), accurate rehab estimation, and fast execution to minimize holding costs. The 70% rule is a starting point — your actual max purchase should be based on detailed cost analysis of every expense line.

Reviewed by Simple Calculators TeamLast reviewed

How to use this calculator

  1. Enter the inputs requested by the calculator.
  2. Choose the units or options that match your situation and review the assumptions.
  3. Run or update the calculation to see the result.
  4. Review the result, breakdown, and formulas shown on the page.
  5. Check the inputs, units, dates, and limitations before saving or sharing the result.

Fix & Flip Formulas

70% Rule — Maximum Purchase Price

Max Purchase=ARV×0.70−Rehab Cost\text{Max Purchase} = \text{ARV} \times 0.70 - \text{Rehab Cost}
ARV
After Repair Value — estimated market value after all repairs
Rehab Cost
Total estimated renovation and repair costs
0.70
70% of ARV — leaves room for all costs and profit

Worked example

$250,000 ARV, $40,000 rehab

Given
ARV = $250,000
Rehab = $40,000
Calculation
250,000×0.70−40,000250{,}000 \times 0.70 - 40{,}000
Result
$135,000 maximum purchase price

Projected Profit

Profit=ARV−Purchase−Rehab−Closing Costs−Financing−Holding Costs\text{Profit} = \text{ARV} - \text{Purchase} - \text{Rehab} - \text{Closing Costs} - \text{Financing} - \text{Holding Costs}
ARV
Sale price after repairs
Closing Costs
Buy (2%) + Sell (6%) closing costs
Financing
Hard money interest during holding period
Holding Costs
Tax + insurance + utilities during renovation

Worked example

$250K ARV, $150K purchase, $40K rehab, 6-month hold

Given
ARV = $250,000
Total Costs = $220,000
Calculation
250,000−220,000250{,}000 - 220{,}000
Result
$30,000 projected profit

Annualized ROI

Annualized ROI=ROI×12Holding Period (months)\text{Annualized ROI} = \text{ROI} \times \frac{12}{\text{Holding Period (months)}}
ROI
Profit / Total Investment × 100%
Holding Period
Number of months from purchase to sale

Worked example

16% ROI on 6-month flip

Given
ROI = 16%
Hold = 6 months
Calculation
16×12616 \times \frac{12}{6}
Result
32% annualized ROI

Frequently asked questions

What is the 70% rule in house flipping?

The 70% rule states that your maximum purchase price should be 70% of the ARV (After Repair Value) minus your rehab costs. It leaves 30% of ARV to cover all costs (closing, financing, holding) and generate profit. It's a quick screening rule, not a replacement for detailed analysis.

What is a good profit margin for a flip?

Most experienced flippers target $20,000–$50,000+ profit per deal, or 10–20% ROI minimum. A 15–25% net profit margin (profit / ARV) is considered solid. Margins below 10% leave too little buffer for cost overruns, which are common in renovation projects.

What are typical financing costs for fix and flip?

Hard money loans typically carry 10–15% annual interest rates, plus 2–3 points (origination fees). For a 6-month flip on a $190,000 loan at 12% annual rate: $190,000 × 12% × 0.5 = $11,400 in interest. Always include financing in your cost analysis.

What holding costs should I budget for?

Monthly holding costs include: property taxes (varies by location), landlord insurance ($75–$200/month), utilities during renovation ($100–$300/month), and any HOA fees. These costs add up fast — a 3-month delay in a 6-month flip project can eliminate $1,500–$2,000 in profit.

How accurate does my ARV need to be?

Your ARV estimate is the most critical input — a 5% error on a $250,000 ARV is $12,500 in potential profit. Use comparable sales (comps) from the last 3–6 months within 0.5 miles of similar size and condition. A licensed appraiser or experienced real estate agent can provide a formal ARV opinion.

Key terms

ARV (After Repair Value)
The estimated market value of the property after all planned renovations are complete
70% Rule
A guideline that max purchase price = ARV × 70% − rehab costs, ensuring enough margin for costs and profit
Hard Money Loan
Short-term, asset-based financing commonly used by flippers with higher rates (10–15%) but fast approval
Holding Costs
Monthly expenses (tax, insurance, utilities) incurred while owning the property during renovation
Annualized ROI
ROI scaled to a 12-month basis, allowing comparison of deals with different holding periods

Methodology, sources & limitations

This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.

For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.