Base scenario
Use your current numbers to establish a realistic fix flip baseline.
This gives you a reference point for every change you test next.
Interactive calculator
Fix & Flip Calculator 2026 Free - House Flipping Profit & ROI
Calculate your house flipping profits with precision. Analyze purchase price, rehab costs, holding costs, and sale price to maximize your returns.
Fast estimateClear assumptionsNext step ready
Quick answer
Quick answer: flip profit depends on ARV, rehab, and holding costs
A simple spread is not enough. Include selling costs, financing, utilities, taxes, insurance, and extra months before deciding the offer price.
Use the calculatorPlanning tip: The 70% rule is your safety net: never pay more than 70% of ARV minus rehab costs. Factor in 6-month holding costs even for 3-month flips.
Quick answer: flip profit depends on ARV, rehab, and holding costs
A simple spread is not enough. Include selling costs, financing, utilities, taxes, insurance, and extra months before deciding the offer price.
Max offer
Often ARV x 70% - repairs
Profit
Sale price - all-in cost
Watch
Timeline and rehab overruns
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How to use this calculator: Enter your financial information in the fields above. Results update automatically as you type. All calculations are performed locally in your browser - we never store or share your personal financial data.
How the Math Works
- The calculator converts your inputs into monthly and annual totals, then applies category-specific formulas for Fix Flip.
- Intermediate values are rounded for display, but calculations preserve precision until final totals are shown.
- Scenario outputs compare baseline values against changed inputs so you can estimate tradeoffs quickly.
Assumptions
- Inputs are treated as stable over the time period you select.
- Rates and costs are assumed to remain constant unless you model a change manually.
- Results are planning estimates, not a lender quote, tax filing output, or legal advice.
Worked Examples
Conservative scenario
Increase key costs by 10% and reduce expected upside by 10%.
If the result still works, your plan likely has a practical safety margin.
Optimized scenario
Adjust one or two controllable levers (rate, payment, timeline, or contribution).
Compare whether the gain is meaningful enough to justify the extra effort.
When This Estimate Breaks
- Your actual numbers can differ when taxes, fees, policy rules, or market pricing change.
- Large life changes (income shifts, relocation, new debt, job changes) can invalidate assumptions quickly.
- Use this estimate with real quotes/statements before making a final financial decision.
Methodology and Editorial Review
- The model computes a baseline from your entered inputs, then recalculates results for each scenario change.
- Displayed values are rounded for readability while internal calculations keep precision until output formatting.
- Editorial review validates formula consistency, assumptions, and user-facing interpretation text.
Author: Affordably Editorial Team
Financial review: Affordably Financial Review Team
Sources and Last Updated
- Consumer Financial Protection Bureau
- Federal Reserve Economic Data (FRED)
- IRS (Tax Topics and Instructions)
Last updated: February 20, 2026
Related Resources
Explore this topical cluster: Personal Finance Planning
Related Calculators
How Fix and Flip Calculator Works
Calculate the potential profit from buying a property, renovating it, and selling for a profit. This calculator helps you determine maximum purchase price, estimate costs, and project returns before committing to a flip.
1
Estimate After-Repair Value (ARV)
Research comparable recently sold homes in the area that are similar to what your property will be after renovation. This is your expected sale price.
2
Calculate Renovation Costs
Get detailed estimates for all repairs: kitchen, bathrooms, flooring, paint, roof, HVAC, etc. Add 20% contingency for surprises.
3
Add Holding Costs
Include mortgage payments, property taxes, insurance, utilities, and HOA during the renovation and sale period (typically 4-8 months).
4
Include Transaction Costs
Add buying costs (closing costs, inspection) and selling costs (agent commissions 5-6%, seller closing costs, staging).
5
Calculate Maximum Allowable Offer (MAO)
Work backwards: ARV - desired profit - rehab - holding costs - selling costs = maximum purchase price to hit profit target.
6
Project Profit and ROI
See projected gross profit, net profit after all costs, and ROI. Calculate if the risk and work is worth the potential return.
Key Factors Considered:
- ✓After-repair value (ARV) accuracy
- ✓Renovation cost estimates
- ✓Holding period length
- ✓Financing costs (hard money rates)
- ✓Transaction costs (buying and selling)
- ✓Market conditions and time on market
- ✓Contingency budget for surprises
- ✓Your profit requirements
Why Calculate Fix and Flip Numbers
- Determine maximum purchase price to hit profit goals
- Identify deals worth pursuing vs passing on
- Estimate realistic profit before committing capital
- Account for all hidden costs that erode profits
- Compare multiple flip opportunities
- Set renovation budget with profit in mind
- Calculate ROI on your time and capital
- Avoid money-losing flip disasters
Key Terms to Know
- After-Repair Value (ARV)
- What the property will sell for after renovations. Based on comparable sales. The most important number - if wrong, all projections fail.
- 70% Rule
- Guideline: pay no more than 70% of ARV minus repair costs. Example: $200k ARV, $30k repairs = max $110k purchase. Builds in profit margin.
- Maximum Allowable Offer (MAO)
- Highest price you can pay and still hit profit target. MAO = ARV - repair costs - holding costs - selling costs - desired profit.
- Hard Money Loan
- Short-term, high-interest loan for flips (10-15% + points). Based on property value, not borrower income. Fast closing but expensive.
- Holding Costs
- Ongoing expenses while you own the property: mortgage, taxes, insurance, utilities. Can be $2,000-5,000+/month. Speed is profit.
- Scope Creep
- When renovation costs exceed original estimates due to discovered issues or added work. Budget 20-30% contingency to cover.
Pro Tips
- →70% rule: MAO = (ARV × 70%) - repair costs. Build profit into purchase price.
- →Get multiple contractor bids with detailed scope of work
- →Budget 20-30% contingency - surprises WILL happen
- →Time kills deals: holding costs add $50-150/day
- →Hard money interest (10-15%) adds up fast - finish quickly
- →Agent commissions (5-6%) are your biggest selling cost
- →Your ARV estimate is everything - be conservative
- →Don't over-improve for the neighborhood
- →First flip: partner with experienced flipper to learn
- →Best deals come from off-market properties (wholesalers, direct mail, probate)
📊 Quick Answer: Fix & Flip
🎯 70% Rule
Max Price = ARV × 70% - Rehab Costs
💰 Ideal Margin
15-20% of ARV minimum for profit
⏱️ Typical Timeline
3-6 months from purchase to sale
📊 Typical Fix & Flip Cost Breakdown
| Cost Category | % of Project | Example $200K ARV |
|---|---|---|
| Purchase Price | 50-60% | $100K-120K |
| Renovations | 15-25% | $30K-50K |
| Closing Costs | 3-5% | $6K-10K |
| Holding Costs | 2-4% | $4K-8K |
| Target Profit | 15-20% | $30K-40K |
* Typical ranges. Actual costs vary significantly by project and market.
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Last updated: May 31, 2026
Frequently Asked Questions - Fix-flip
- What is fix & flip in real estate?
Fix & flip is buying a discounted property, renovating it to increase value, and quickly reselling it for profit. Typically completed within 3-6 months.
- What are the main costs in fix & flip?
Costs include: purchase price, renovations, closing costs (buying and selling), financing, insurance, taxes, utilities, and holding costs during the project.
- What profit margin should I target?
Recommended minimum margin: 15-20% of ARV. Experienced flippers target 20-30%. Consider that unexpected issues can reduce margins, so plan conservatively.
- How do I calculate ARV correctly?
ARV (After Repair Value) is calculated using recent comparables of similar renovated properties in the area. Use at least 3-5 comparables sold within the last 3-6 months.
- How long does a typical project take?
Typical projects: 3-6 months total. Renovation: 1-3 months. Sale: 1-3 months. Longer projects increase holding costs and reduce annualized ROI.
- What types of properties are best for flipping?
Best properties: need cosmetic renovations, in stable neighborhoods, with significant value-add potential, and where you can buy at 20-30% discount to ARV.
🏘️ Real Estate Calculators
💡 Pro Tips
1% Rule
Rent ≥ 1% of price
Cap Rate
NOI ÷ Property value
Reserves
5-10% for repairs
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How These Results Are Calculated
Each calculator uses standard financial formulas and explicit assumptions to generate educational estimates. Results are based on your inputs and may vary based on rates, taxes, fees, and local market conditions.
- Public data sources include the IRS, BLS, Census, Federal Reserve, and state agencies.
- Calculators are reviewed periodically to reflect market and tax-rule changes.
- These results do not replace personalized professional advice.
GA
Reviewed by the Founder of GetAffordably
This content was created with AI assistance and reviewed by the founder of GetAffordably. Financial data is sourced from the U.S. Census Bureau, Federal Reserve, IRS, and other public records, and is verified periodically.
Last updated: May 2026