What is a fix and flip in real estate?

Fix and flip is an investment strategy where you buy a distressed property below market value, renovate it, and sell it quickly for a profit. Success depends on buying right, controlling rehab costs, and accurately estimating the After Repair Value (ARV).

How do you calculate fix and flip profit?

Net profit = ARV (sale price) minus purchase price, rehab costs, financing costs (interest + loan points), holding costs (taxes, insurance, utilities during rehab), and selling costs (agent commission, closing costs, staging). A good flip typically targets 10-20% ROI.

What is the 70% rule in house flipping?

The 70% rule states that an investor should pay no more than 70% of the After Repair Value (ARV) minus repair costs. For example, if the ARV is $300,000 and repairs cost $50,000, the maximum purchase price would be $300,000 × 0.70 - $50,000 = $160,000.

Free Calculator

Fix & Flip Calculator

Analyze rehab projects and calculate net profit, ROI, and annualized returns.

Purchase & Rehab

Purchase Price

After Repair Value (ARV)

Rehab Budget

Rehab Duration (Months)

Financing

Down Payment %

Interest Rate %

Loan Points %

Net Profit

$14,667

ROI

14.5%

Annualized

43.4%

Profit/Mo

$3,667

Project Breakdown

Purchase Price$200,000

Rehab Budget$50,000

Financing Costs$8,533

Holding Costs$8,133

Selling Costs$24,000

Total Project Cost$285,333

ARV (Sale Price)$300,000

Save this deal and track it to closing

Create a free account to save up to 3 deals — no credit card required.

All calculators included
Up to 3 deals, 3 scenarios
Meet Dale — AI advisor

No credit card required

Investment Disclaimer

This calculator is for informational and educational purposes only. Results are estimates based on your inputs and do not constitute investment advice. Real estate investing involves risk, including potential loss of principal. Read full disclaimer

Why Fix & Flip Analysis Matters

House flipping can be one of the most profitable real estate strategies — but only if you run the numbers before you buy. Too many new investors fall in love with a property's potential without calculating the true cost of acquisition, rehab, holding, and selling. That gap between optimism and reality is where most flippers lose money.

A thorough fix-and-flip analysis forces you to account for every dollar: financing costs, contractor bids, insurance premiums, and the agent commissions you'll pay at closing. By stress-testing your deal upfront, you can set a maximum purchase price, negotiate with confidence, and walk away from deals that don't pencil out.

What's Included in This Calculator

After Repair Value (ARV) — Set your target sale price based on comparable sales
Rehab Budget — Estimate renovation costs with a single line item or detailed breakdown
Holding Costs — Property taxes, insurance, utilities, and HOA during the rehab period
Selling Costs — Agent commissions, closing costs, and staging fees
Financing Costs — Loan amount, interest rate, points, and loan term
ROI & Annualized Return — See net profit, cash-on-cash ROI, and annualized return based on hold time

Common Mistakes Flippers Make

1. Underestimating Rehab Costs

Always add a 10-20% contingency buffer. Unexpected issues like foundation problems, outdated electrical, or permit delays can blow up your budget fast.

2. Ignoring Holding Costs

Every month you hold a property costs money — mortgage payments, taxes, insurance, and utilities. A flip that takes 8 months instead of 4 can eat half your profit.

3. Overestimating the ARV

Use conservative comp data. Cherry-picking the highest sale in the neighborhood will lead to a price that doesn't attract buyers — or worse, an appraisal gap.

4. Skipping Financing Costs

Hard money loans often charge 2-4 points upfront plus 10-14% interest. These costs can represent $10,000+ on a typical flip and must be factored into your purchase price.