Holding Costs
Includes mortgage, insurance, taxes, utilities, and loan interest.
Closing Costs
Sell costs typically include 5-6% agent commissions plus 2-3% in title, transfer taxes, and fees.
Flip Analysis
Enter property details and click calculate.
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What This Calculator Does
This fix and flip profit calculator helps house flippers, real estate investors, and wholesalers estimate the net profit, ROI, and profit margin on a property renovation project. It accounts for purchase price, after-repair value (ARV), total rehab costs, holding costs during the renovation period, and both buying and selling closing costs. The tool also calculates rehab cost per square foot so you can benchmark your renovation budget against 2026 industry averages of $20 to $50 per square foot for standard residential flips.
The Formula
The after-repair value (ARV) is the estimated market value of the property after renovations are complete. Buy closing costs are typically 1-3% of the purchase price. Sell closing costs include agent commissions (5-6%) plus title fees, transfer taxes, and other charges (2-3%), totaling approximately 7-9% of the ARV. Holding costs cover mortgage payments, insurance, property taxes, and utilities during the renovation period.
Step-by-Step Example
Determine ARV and purchase price
The property will be worth $320,000 after repairs (ARV). You negotiate a purchase price of $200,000, which is 62.5% of ARV.
Estimate rehab costs
The 1,500 sq ft property needs $50,000 in renovations ($33.33 per sq ft), covering kitchen, bathrooms, flooring, and paint.
Calculate holding costs
Monthly holding costs are $2,500 (hard money interest, insurance, taxes, utilities) over a 6-month project: $2,500 x 6 = $15,000.
Add closing costs
Buy closing at 2%: $4,000. Sell closing at 8%: $25,600. Total closing costs: $29,600.
Calculate net profit
$320,000 - $200,000 - $50,000 - $15,000 - $29,600 = $25,400 net profit, a 8.6% ROI on total investment.
Real-World Use Cases
Fix and Flip Analysis
Evaluate whether a potential flip deal meets your minimum profit threshold before making an offer. Most experienced flippers target at least 10-15% net profit margin.
Rehab Budget Planning
Compare your renovation budget per square foot against market benchmarks to ensure you are not over-improving or under-budgeting the project.
Hard Money Loan Evaluation
Factor in the true cost of hard money financing (10-14% interest plus 1-3 points in 2026) to see whether the deal still generates acceptable returns after financing costs.
Common Mistakes to Avoid
Underestimating rehab costs. Always add a 10-20% contingency buffer on top of contractor bids to account for unexpected issues like termite damage, plumbing problems, or permit delays.
Using retail sale comps for ARV without adjusting for condition, location, and current 2026 market trends. Conservative ARV estimates protect your downside.
Forgetting holding costs. A 6-month project at $2,500 per month adds $15,000 to your total investment, significantly reducing profit margins.
Not accounting for both buying and selling closing costs. Sell-side costs alone (commissions plus fees) can reach 8-10% of the sale price.
Ignoring the 70% rule as a quick screening tool. Many flippers will not pay more than 70% of ARV minus repairs for a property.
Frequently Asked Questions
Accuracy and Disclaimer
This calculator provides estimates for informational purposes only. Actual rehab costs, holding costs, and resale values vary by market, property condition, and economic factors. Consult licensed contractors for renovation estimates and a real estate professional for accurate property valuations before making investment decisions.
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