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Fix & Flip ROI Calculator

Project net profit, ROI on cash, and annualized return on a fix and flip deal. Includes a Maximum Allowable Offer solver using the 70% Rule and an ARV sensitivity strip so you can see downside.

Your deal

Acquisition

$
%

Of the purchase price

%

Of the purchase price

%

Hard-money rates run 8–12% in most markets

mo
%

Of the loan amount, paid up front

Rehab

$
%

Buffer on top of the budget

mo

Monthly holding costs

$
$
$
$
$

Security, lawn, misc.

Sale

$
mo

Total months from close to sale

%
%
%

Headline

Net profit$42,093
ROI on cash invested40.51%
Annualized ROI81.02%
Profit margin vs ARV11.69%
Cash invested$103,908

All-in cost

Acquisition (purchase + closing)$224,400
Rehab (incl. contingency)$49,500
Financing (points + interest)$13,557
Holding costs$3,450
Selling costs$27,000
Total all-in$317,908

Maximum Allowable Offer (70% Rule)

A starting-point offer price that bakes in rough cushion for financing, holding, selling, and profit.
MAO = ARV × rule% − rehab

%

Lower in tougher markets, higher in hot markets

Max offer at 70% rule$207,000
Your current offer$220,000
Offer vs MAO+$13,000

ARV sensitivity

ScenarioSale priceNet profitROI
ARV −10%$324,000$8,7938.46%
ARV −5%$342,000$25,44324.49%
Target ARV$360,000$42,09340.51%
ARV +5%$378,000$58,74356.53%
Results are estimates based on user inputs and do not represent loan terms, APR, or a financing offer. Pre-filled values are illustrative examples, not available or quoted rates. Actual terms depend on credit, property, program, and underwriting.

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Discuss Your Scenario

Frequently asked questions

What is hard money and why do flippers use it?
Hard money is short-term, asset-based real-estate financing, often interest-only for 6 to 24 months. Rates and points are higher than a traditional mortgage, but the underwriting is faster and leans on the deal rather than your W-2 income. Most flippers use it because close speed and access to rehab funds matter more than rate.
What is the 70% Rule?
A widely used back-of-the-envelope guideline: do not pay more than 70% of ARV minus the rehab budget. It bakes in rough cushion for financing, holding, selling costs, and profit. It is a starting point, not a formula, and the rule percentage is adjustable depending on the market.
What are the most common pitfalls on a flip?
Underestimating the rehab budget, underestimating the hold time, missing the sale window and eating extra months of holding and interest, and being too optimistic on ARV. Good deals survive a 5 to 10% haircut on ARV. If yours does not, the margin is too thin.
Does this calculator include taxes on the profit?
No. Profit here is before income taxes. Short-term flips are generally taxed as ordinary income, not long-term capital gains, which can take a meaningful bite. Talk to a CPA about how a given deal will be taxed in your situation.

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Related reading

Want the story behind the numbers?

  • HubInvestment property hubWhere flips fit into a broader investor strategy.Read
  • HubNon-QM loansHard-money and bridge financing options for flips.Read
  • ArticleWhat actually moves mortgage rates (and what does not)Why short-term financing pricing moves with the market.Read

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