Fix & Flip
Profit Calculator
Analyze any house flipping deal in seconds. Get a complete cost breakdown, ROI, and profit estimate — so you can invest with confidence.
Start CalculatingAnalyze Your Deal
Enter your numbers below and get an instant profit analysis. All calculations update in real-time.
$46,600
This deal looks profitable!
42.0%
$7,767
$110,900
$195,000
Cost Breakdown
Loan Summary
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How It Works
Our calculator uses the same formulas professional real estate investors rely on.
Enter Purchase Details
Input the property purchase price, down payment, interest rate, and closing costs.
Add Rehab Costs
Estimate renovation costs including materials, labor, and a contingency buffer for surprises.
Set Holding Period
Define how long you expect the project to take and enter monthly carrying costs.
Get Instant Analysis
See your estimated profit, ROI, and a complete cost breakdown to make informed decisions.
The 70% Rule Explained
The 70% Rule is the most widely used formula by experienced house flippers to determine the maximum price they should pay for a property. It provides a quick way to evaluate whether a deal is worth pursuing.
The Formula:
MAO = (ARV × 70%) − Rehab Costs
MAO stands for Maximum Allowable Offer — the highest price you should pay for the property. ARV is the After Repair Value, which is what the property will be worth once renovations are complete.
The remaining 30% covers your profit margin, holding costs, closing costs, and unexpected expenses. Some investors use 65% for tighter markets or 75% in less competitive areas.
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Complete Guide to Fix and Flip Investing
What is Fix and Flip?
Fix and flip is a real estate investment strategy where an investor purchases a distressed or undervalued property, renovates it to increase its market value, and then sells it for a profit. This strategy has become increasingly popular due to TV shows and the potential for significant returns in a relatively short timeframe.
Key Costs in a Fix and Flip Deal
Understanding all the costs involved is critical to a successful flip. Many new investors underestimate expenses, leading to thinner margins or even losses. Here are the main cost categories:
- Acquisition Costs: Purchase price, closing costs, loan origination fees, and inspection costs.
- Renovation Costs: Materials, labor, permits, and always include a 10-20% contingency for unexpected issues.
- Holding Costs: Monthly interest payments, property taxes, insurance, utilities, and maintenance during the project.
- Selling Costs: Realtor commissions (typically 5-6%), staging, photography, and seller closing costs.
How to Estimate After Repair Value (ARV)
The ARV is the most important number in any flip analysis. To estimate it accurately, look at comparable sales (comps) in the same neighborhood — properties that are similar in size, age, and condition to what your property will look like after renovation. Focus on sales within the last 3-6 months and within a half-mile radius.
Common Mistakes to Avoid
The most common mistakes new flippers make include: underestimating rehab costs, overestimating the ARV, not accounting for holding costs, taking too long to complete renovations, and over-improving the property beyond what the neighborhood supports. Our calculator helps you avoid these pitfalls by forcing you to account for every cost category.
Financing Your Flip
Most flippers use hard money loans — short-term loans specifically designed for real estate investors. These typically have higher interest rates (8-15%) but offer fast closings and are based on the property's value rather than your credit score. Other options include private money lenders, home equity lines of credit (HELOCs), or partnerships with other investors.