About this Real Estate Flip
Flipping houses can be lucrative, but margins are tighter than they appear on TV. This calculator helps investors tally up all the hidden costs—purchase, rehab, holding, and closing—to determine the true Net Profit and ROI.
Who this calculator is for
- Real-estate investors sizing up a fix-and-flip deal before making an offer.
- Operators reviewing whether rehab budgets and selling assumptions leave enough margin.
- Anyone comparing multiple flip scenarios with different purchase, repair, and exit costs.
When to use it
- Estimate project profit and ROI before buying a property.
- Stress-test how changes in repairs, holding time, or selling costs affect the deal.
- Check whether a target sale price leaves enough room for risk and contingency.
How to use this calculator
- Enter the Purchase Price.
- Estimate Repair Costs (Materials + Labor).
- Enter the ARV (After Repair Value - Expected Sale Price).
- Add Holding Costs (Loan interest, utilities, taxes during renovation).
- Add Closing Costs (Agent fees to sell, usually 6-10%).
Key assumptions
- This calculator assumes one buy, one rehab, and one sale with all major costs summarized in the entered buckets.
- ARV is treated as the final sale price, not a range of possible outcomes.
- Negative purchase, repair, holding, closing, or sale values are treated as invalid.
Accuracy and testing
Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.
How this calculator works
Inputs explained
ARV
After Repair Value. What the house will sell for once renovations are complete.
Repair Costs
The total budget for renovation. Always add a contingency fund (10-20%) for surprises.
Holding Costs
Costs incurred while you own the property but before you sell it. Includes loan interest (hard money), insurance, utilities, and property taxes.
Closing Costs
The cost to sell the home. Typically includes 5-6% for agent commissions plus transfer taxes and title fees.
Understanding your results
Example scenarios
70% Rule
Many investors follow the 70% rule: Pay no more than 70% of the ARV minus repairs. ARV $300k. Repairs $50k. Max Offer = ($300k * 0.70) - $50k = $160k.
Standard Flip
Buy $200k. Repair $50k. Hold/Close $25k. Total Cost $275k. Sell $350k. Profit $75k. ROI 27%.
Key Features
- Detailed Cost Breakdown
- ROI Calculation
- Holding Cost Factor
Things to Keep in Mind
Does not calculate capital gains tax implications.
Tips & Best Practices
- Speed is key. Every month you hold the property costs money (interest, taxes, utilities), eating into your profit.
- Be realistic about ARV. Don't assume the market will appreciate during your renovation.
- Don't forget the 'Self-Employment Tax' if you do this as a business.
Glossary of Terms
- ARV
- After Repair Value.
- Hard Money Loan
- A short-term loan used by flippers, typically with high interest rates (10-15%) and points.
- MAO
- Maximum Allowable Offer. The highest price you can pay and still meet your profit goals.