Fix-and-Flip ROI Calculator

Project the total profit and ROI on a house flip, accounting for purchase price, rehab, holding costs, financing, and selling expenses.

Loan interest + taxes + insurance + utilities
6% agent + 2% closing typical
Down payment + rehab + closing not financed
Net Profit
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Profit after ALL costs — purchase, rehab, holding, selling
70% Rule Check
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Total Project Cost
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Total Holding Cost
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Selling Cost
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ROI %
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Annualized ROI
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Ad Space

The 70% Rule Explained

The classic fix-and-flip screening rule: Max Purchase Price = (ARV × 0.70) − Rehab Cost. The 30% buffer covers selling costs (~8%), holding costs (~5-7%), buying closing costs (~2%), and reasonable profit (~13-15%). If you can't acquire at or below this price, the deal mathematically can't produce target returns even with perfect execution.

The 70% rule is a starting filter — not a final analyzer. Hot markets with rapid appreciation sometimes justify 75% or 80% rule. Cold or unfamiliar markets warrant 65%. Always pair the 70% rule with detailed line-item budgeting like this calculator. Source: BiggerPockets community standards, Real Estate Investar 2026 benchmarks. Last updated: May 2026.

Holding Cost Reality Check

The single biggest mistake new flippers make: underestimating holding cost. A typical flip carries: hard-money loan interest at $1,800-$2,500/month, property taxes ($150-$400/mo), insurance ($150-$250/mo), utilities ($100-$200/mo), HOA if applicable ($50-$300/mo). Total: $2,250-$3,650/month for a typical $200K-$400K flip.

If your flip plan says 4 months but it takes 7 months (rehab delays + market days on market), that's an extra $7,000-$11,000 in holding cost — easily wiping out half the projected profit. Always model 1.5× your expected timeline.

Where Flips Most Often Lose Money

(1) Rehab budget overruns — average flip exceeds initial budget by 22% (J Scott data). Pad your budget 20% before financing. (2) ARV optimism — comparable sales must be within 0.5 miles, sold in last 90 days, similar sq ft and finish level. (3) Market timing — rising-rate environments cool buyer demand 30-50% within 6 months. (4) Hard money cost — 10-13% interest plus 2-4 points adds up fast. (5) Capital gains tax — short-term gains (under 1 year) are taxed at ordinary income rates 22-37%. Source: BiggerPockets 2025-2026 flipper survey.

When BRRRR Beats Flip

The Buy-Rehab-Rent-Refinance-Repeat strategy delivers similar gross profit potential to flips but defers capital gains tax (you never sell) and produces ongoing cash flow. BRRRR makes sense when (1) the property cash flows positively at projected rent, (2) you can refinance at 75% LTV on ARV to recover most of your cash, and (3) you want passive income instead of active labor cycles. Run both analyses before locking strategy.