Fix and Flip Calculator
Calculate the maximum price you should pay for a flip, your expected net profit, and ROI after rehab, holding costs, selling fees, and financing. Applies the 70% rule so you know your walk-away number before you make an offer.
What Is the 70% Rule in Flipping?
The 70% rule says a flipper should pay no more than 70% of the after-repair value (ARV) minus the estimated rehab cost. For an ARV of $300,000 with $40,000 of repairs, the maximum purchase price is $300,000 × 0.70 − $40,000 = $170,000. The 30% spread covers holding costs, closing costs on both ends, financing, selling commissions, and net profit. In slower or more expensive markets, experienced flippers tighten to 65%.
Holding Costs Are the Silent Profit Killer
Every month the property sits, you pay debt service, property tax, insurance, utilities, and loan interest. On a hard-money loan at 11% on a $170,000 balance, holding cost alone is about $1,560/month before any other expense. A 6-month flip carries roughly $12,000-$18,000 in holding costs. Underestimating holding time is the single most common reason flips miss their pro-forma profit.
Selling Costs Eat the Exit
When you resell, expect agent commissions (5-6%), seller concessions often requested by buyers (1-3%), title and escrow fees (1-1.5%), transfer taxes (variable by state), and sometimes staging or final repair credits. Total selling costs usually run 8-10% of the sale price. This calculator subtracts all of them from gross sale price to compute true net profit.
What ROI Should I Target?
Experienced flippers typically aim for 20%+ ROI on cash invested per deal or a minimum net profit of $25,000-$35,000 per flip. Thinner spreads can make sense for experienced teams with repeatable systems, but beginners should build a buffer: the rehab will cost 10-20% more than budgeted and the holding period will be 1-2 months longer than planned.