Fix and Flip Calculator
Underwrite a house flip in 60 seconds. Plug in ARV, rehab budget, holding period, and financing to see net profit, ROI, annualized return, and your max allowable offer update live.
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Applies to this tab. Down payment, rate, and term drive the mortgage.
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- Deal score (0–100)
- Net profit & ROI
- Annualized ROI
- Margin & ARV ratio
- Max Allowable Offer
- Auto risk flags
No custom expenses yet. Add anything specific to this deal, lawn care, permits, pest, etc.
See your full flip analysis
Sign up free to unlock live results as you change the numbers. No credit card. Takes 30 seconds.
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How fix-and-flip math actually works
A flip looks simple (buy low, fix it up, sell high), but the math quietly buries most new flippers. Real profit only shows up after you subtract every line of cost: acquisition, rehab, financing, holding, and selling. This calculator forces each one into the open so you know what you're actually committing to before you sign.
The profit formula
Profit = ARV − Purchase − Closing − Rehab − Holding − Financing − Selling
ROI is that profit divided by the cash you actually invested (down payment, closing, rehab funded out of pocket, holding costs). For most flips, an annualized ROI of 25%+ is the bar that justifies the execution risk.
The 70% rule, and where it breaks
The classic 70% rule sets your max allowable offer at 0.70 × ARV − Rehab. It's a useful first filter but assumes a 6-month hold, modest holding costs, and conventional financing. In a tight market or with hard money, the calculator's target-profit MAO is more honest. It solves for the offer price that hits your exact dollar profit target after every line cost.
Where flippers blow up
- Optimistic ARV. Pulling comps from a hotter submarket or older time window inflates ARV. Cross-check three sources before locking it in.
- Skinny contingency. 10% contingency on rehab is a minimum. Older homes (pre-1980) routinely need 15–20%.
- Hold time creep. Every extra month is taxes, insurance, utilities, and loan interest. Permit delays and contractor schedule slips are the most common cause of margin erosion.
- Underweighted selling costs. Agent commission, transfer tax, title fees, and seller concessions easily total 7–9% of ARV.
Glossary
- ARV: After Repair Value. The realistic resale price once the rehab is complete.
- MAO: Maximum Allowable Offer. The highest price you can pay and still hit your target profit.
- LTC: Loan-to-Cost. The percentage of total project cost a hard-money lender will fund.
- Points: Origination fee on a hard-money loan, expressed as a percent of loan amount.
- Annualized ROI: ROI scaled to a 12-month basis so 4-month and 9-month flips can be compared apples-to-apples.
Frequently asked questions
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Estimates only, based on the inputs you provide and third-party data. Not investment, tax, accounting, or legal advice. See our full disclaimer.