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.
Frequently Asked Questions
What is the 70% rule for flipping houses?
The 70% rule states that your maximum offer should equal 70% of the after-repair value minus the rehab budget. The 30% spread covers holding costs, closing costs on both ends, financing, selling commissions, and profit. It is a quick sanity check — detailed deal analysis should still be run.
How do I estimate ARV?
ARV (after-repair value) is based on sold comparables within 0.5 miles, similar square footage, bedrooms, bathrooms, and condition, closed within the last 3-6 months. Three to five comps is the standard. A licensed agent or appraiser who knows the neighborhood is the best source; online estimators like Zestimate are directional only.
What are typical holding costs?
On a 6-month flip, holding costs often run 5-8% of the purchase-plus-rehab total. Major components are loan interest (largest on hard money at 10-12%), property tax, insurance, utilities, and HOA. Fast flips (3-4 months) dramatically reduce holding cost; slow markets can push it to 10%+.
Should I use hard money or conventional financing?
Hard money is faster to close (7-14 days) and funds based on ARV — often 90% of purchase and 100% of rehab — but rates are 9-12% with 2-4 points. Conventional investor loans are cheaper (6-8%) but require 20-25% down, 30-60 day closings, and cannot include rehab funds. Most flippers use hard money for acquisition then refinance or sell.
What profit should I target per flip?
Minimum $25,000-$35,000 net profit or 20%+ ROI per deal is a common target. Lower margins leave no room for surprises — and there are always surprises (extra rehab, longer holding time, market softening). New flippers especially need cushion to absorb overruns.
What are the biggest mistakes flippers make?
Underestimating rehab cost (add 15-20% contingency), overestimating ARV (pull fresh comps, not listings), choosing the wrong neighborhood (check months of inventory), over-improving for the market (match the comp level), and under-budgeting holding costs. Running the numbers through this calculator before writing an offer prevents most of them.