Fix and flip calculator

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Price, ARV, rehab, the loan and the months in; net profit, return on your cash and the most you can pay by the 70% rule out.

1. The deal

Purchase price ($)

Closing costs when you buy ($)

After repair value, ARV ($)

Use recent closed sales of fixed up homes like this one nearby. Ask an agent or appraiser for the comps.

Rehab budget, with contingency ($)

The whole rehab, contingency included. 0 if there's no work.

Months of rehab

Months to sell

2. Financing

Cash or hard money

Lends this % of the purchase price

Lends this % of the rehab, in draws (%)

But never more than this % of the ARV

Most lenders cap the loan at a share of the ARV. Over the cap, the loan shrinks and you bring more cash at closing.

Interest rate per year, interest only (%)

Points (% of the loan, at closing)

Lender fees ($)

3. Holding costs

Property taxes per year ($)

Insurance per year, vacant or builder's risk ($)

Many homeowner policies don't cover a vacant house under rehab. Get a quote for a vacant or builder's risk policy.

Utilities per month: power, water, gas ($)

HOA per month ($)

Lawn and pest control per month ($)

Other per month ($)

4. Selling

Agent commission (% of the sale price)

Seller closing costs (%)

Concessions to the buyer (%)

Other selling costs ($)

Your minimums

Minimum net profit ($)

Minimum return on your cash (%)

Minimum ROI per year (%)

Minimum profit as % of ARV

Rule: % of ARV for price + rehab

The share of the ARV you'll pay for price plus rehab. 70% is the common rule; some investors use 65% to 75%.

Verdict

GREEN

Meets every minimum.

Net profit

$36,080

Return on your cash (ROI): 109.3%
ROI per year (annualized): 187.3%
Profit as % of ARV: 15%
Max offer by the rule (ARV × rule % − rehab): $118,000 · OK
Profit if you pay the rule price: $27,432
Total cost: $203,920
Cash you put in: $33,020
Hard money loan: $149,000
Months you own it: 7
Each extra month costs you: $2,220
Sale price where you break even: $200,568

GREEN: meets every minimum. YELLOW: misses one and still makes money. RED: loses money, or misses two or more.

Estimates only. Check every number with your lender, title company, agent and contractor before you sign.

Your numbers, calculated in your browser. Nothing is saved or sent.

The full workbook adds private money, Dutch interest loans, the most you can pay for your target profit, sensitivity, compare three deals and a one page deal summary. See the Fix & Flip Analyzer →

Download this calculator as Excel (free) ↓

How the math works

This is the same model as the free Excel file. Loans are interest only. Rehab money comes out in draws as the work gets done, so on average half of it is out during the rehab and all of it while the house is for sale.

Max offer by the 70% rule = ARV × 70% − rehab
Months = months of rehab + months to sell
Hard money loan = the smaller of (price × % of price + rehab × % of rehab) and ARV × the lender's cap
Interest = purchase part × rate ÷ 12 × months + rehab part × rate ÷ 12 × (rehab months ÷ 2 + months to sell)
Holding = ((taxes + insurance) ÷ 12 + utilities + HOA + lawn + other) × months
Selling = ARV × (commission + seller closing + concessions) + other selling costs
Net profit = ARV − price − closing − rehab − points and fees − holding − interest − selling
Return on your cash = net profit ÷ cash you put in; per year = that × 12 ÷ months

The example above

A $110,000 house with a $240,000 ARV and a $50,000 rehab, 4 months of work and 3 to sell, on a hard money loan of $149,000. The total cost is $203,920, so the net profit is $36,080. You put in $33,020 of your own cash, a 109.3% return, or 187.3% a year over 7 months.

The 70% rule caps the offer at $240,000 × 70% − $50,000 = $118,000. Paying exactly that would leave $27,432. Every extra month costs $2,220, so a slow sale comes straight out of the profit.