What is Fix and Flip Profit Calculator?
The Fix and Flip Profit Calculator helps investors analyze the profitability of house flipping projects.
When to Use This Calculator
- Evaluating a potential flip's profit margin before making an offer on the property
- Comparing multiple flip candidates to prioritize which one to pursue first
- Deciding your maximum purchase price using the 70% rule as a starting sanity check
- Tracking whether an in-progress renovation is still on budget to hit your target profit
- Presenting a deal's numbers to a hard-money lender or private investing partner
- Deciding whether a marginal deal's ROI justifies the time and risk versus a safer investment
Steps:
- Enter purchase price and rehab costs.
- Input ARV and additional costs.
- View profit and ROI.
Formula
Total Investment = Purchase Price + Rehab Costs + Closing & Holding Costs
Profit = ARV − Total Investment
ROI = (Profit / Total Investment) × 100
Profit Margin = (Profit / ARV) × 100
70% Rule: Purchase Price + Rehab ≤ ARV × 0.70
Where: ARV = After Repair Value
Example: $280K ARV − ($150K Purchase + $40K Rehab + $15K Costs) = $75K Profit
Use Cases
- Flip analysis
- Deal evaluation
- Investment planning
Key Benefits
- Instantly calculates ARV-based profit and ROI for any flip deal
- Applies the 70% rule automatically to avoid overpaying
- Compares purchase price, rehab budget, and holding costs side by side
- Models total investment before you commit earnest money
Pro Tips
- Get at least three contractor bids before finalizing your rehab budget
- Add a 10-15% contingency buffer to rehab costs for surprises
- Track holding costs monthly — every extra month erodes profit
Common Mistakes to Avoid
- Underestimating rehab costs by skipping a contractor walkthrough
- Overestimating ARV based on hopeful comps instead of recent sales
- Ignoring holding costs like loan interest, insurance, and property taxes
Key Terms Explained
- ARV: After Repair Value, the expected resale price once renovations are complete
- 70% Rule: Purchase price plus rehab should not exceed 70% of ARV
- Holding Costs: Loan interest, taxes, insurance, and utilities paid while owning the property
- Profit Margin: Profit divided by ARV, expressed as a percentage
Related Concepts
- Real Estate Wholesaling: If a deal's numbers don't work as a flip (too little margin after rehab), it may still work as a wholesale assignment to another investor. Compare the two exit strategies with our wholesaling profit calculator.
- BRRRR Strategy: Instead of selling after renovation, some investors refinance and hold the property as a rental — the BRRRR strategy. Model that alternative exit with our BRRRR calculator before deciding whether to flip or hold.
- Profit Margin: Profit margin (profit as a percentage of ARV) shows how much cushion you have if the resale price comes in below projection — check it alongside ROI with our profit margin calculator.
- ROI: Return on total costs is the standard way to compare a flip's return against other investment opportunities on equal footing — our general ROI calculator is useful for that broader comparison.
- Rental Property Cash Flow: If a flip doesn't sell quickly or the market softens, some investors pivot to renting the property instead — see what that would look like financially with our rental property calculator.
Example
A $150K purchase with $40K rehab, $280K ARV, and $15K costs yields significant profit.
Interpreting Your Results
Fix-and-flip profit is the after-repair value (ARV) minus every dollar spent to get there — purchase price, rehab costs, holding costs (loan interest, taxes, insurance, and utilities during the renovation), and selling costs (agent commissions, closing costs). ROI (profit ÷ total cost) tells you the return on capital deployed, while profit margin (profit ÷ ARV) tells you how much cushion you have if the sale price comes in lower than projected — the two numbers answer different questions and both matter. Many experienced flippers use the "70% rule" as a first-pass filter: don't pay more than 70% of ARV minus rehab costs for the property, which builds in room for holding costs, selling costs, and a reasonable profit margin. A flip with a healthy ROI but a thin profit margin is more fragile — a small overrun in rehab costs or a soft resale market can erase the profit entirely, so always stress-test the numbers with a lower ARV and higher rehab cost before committing.