Asset Lift Lending
    Tools / Property renovation

    Free investor tool

    Free fix and flip calculator

    Pressure-test your purchase, rehab, hold, and sale assumptions. Adjust the example values to explore a scenario.

    Modeled project profit
    $47,500
    LIVE

    After modeled purchase, rehab, carry, and selling costs

    0% margin15%30%+ of ARV

    Modeled profit $47,500 ÷ ARV $430,000 = 11.0% of ARV

    Estimated cash needed

    $77,400

    Purchase equity + full rehab + modeled purchase costs.

    Loan amount · derived

    $266,000

    $280,000 price × 95% financed

    Set your scenario

    EDITABLE EXAMPLES
    $
    $50k$1.5m

    Contract price before purchase closing costs.

    $
    $0k$500k

    Current estimated construction budget; contingency is not added automatically.

    $
    $50k$2m

    Use nearby closed sales that support the finished value.

    %
    0%100%

    Editable illustrative share of purchase price financed; not an offer or assumed program approval.

    0 mo24 mo

    Interest is modeled as simple monthly interest on the derived purchase loan.

    %
    0%24%

    Illustrative rate only; actual financing cost and structure may differ.

    %
    0%10%

    Modeled as a share of purchase price; actual costs vary.

    %
    0%15%

    Modeled as a share of ARV; actual commissions, transfer taxes, concessions, and fees vary.

    Profit = ARV − purchase price − rehab − modeled purchase closing costs − simple interest carry − modeled selling costs. Estimated cash needed = purchase-price equity + full rehab + purchase closing-cost assumption. Cash needed excludes interest/carry reserves, lender and draw fees, taxes, insurance, utilities, contingency, and other costs. ROI is modeled profit divided by modeled cash needed. Defaults are illustrative, not a quote, approval, or full project budget.
    Review my flip scenario

    The next step carries these figures into the review form. Contact and property-address details are still needed.

    What This Fix and Flip Calculator Does

    Fix & Flip LoansCalculate ARVRehab draw processLoan requirementsDeal checklistBorrower package

    This calculator estimates a flip's project cost and profit from purchase price, rehab budget, after-repair value (ARV), financing rate, hold period, purchase closing costs, and sale costs. It uses fixed calculation assumptions described below. The output is a scenario estimate, not a lender quote, loan approval, tax calculation, or guarantee of the final return. Add costs the model does not include before deciding whether a deal works.

    The goal is not to produce a perfect prediction. Rehab timelines slip, material costs shift, and resale markets move. The goal is to stress-test your assumptions before capital is committed. If a deal only works when every variable breaks your way, it is not a deal -- it is a bet.

    What the model includes and leaves out

    The calculator models purchase price plus rehab as investment, purchase closing costs, interest on a fixed 95% purchase advance for the entered months, and the entered sale-cost percentage. It assumes rehab funding is available as part of the project but does not model draw timing or draw fees. It does not include taxes, insurance, utilities, permits, appraisal, title, lender points or other fees, reserves, contingency, or every source of cash. ROI uses the modeled 5% purchase down payment, rehab budget, and purchase closing costs as its cash denominator. Replace the illustrative inputs with deal-specific quotes and amounts; check that the model fits the actual written financing terms.

    Key Terms Defined

    ARV (After-Repair Value)

    The estimated resale value after the planned work. Support it with recent closed sales in the same neighborhood that match property type, size, unit count, condition, and finish level. A citywide median or listing price is not a substitute for subject-level comparable sales; appraised value and realized sale price can differ.

    LTV (Loan-to-Value) and LTC (Loan-to-Cost)

    LTV compares the loan amount to a property's value; LTC compares a loan with eligible project cost. Lender definitions, eligible costs, leverage limits, and ARV caps vary by program and file. This calculator does not determine a lender's maximum advance or cash-to-close amount; use the written term sheet and closing figures.

    Holding Costs

    Recurring project expenses during acquisition, rehab, and sale, which may include interest, property taxes, insurance, utilities, maintenance, HOA dues, and other costs. This calculator estimates interest from the entered purchase-financing assumption, rate, and months; it does not include every carrying expense. Add local amounts and test a longer hold before relying on the margin.

    Rehab Draw Schedule

    Most fix-and-flip lenders release renovation funds in stages (draws) as work is completed and inspected. Payment order, draw inspections, fees, timing, and borrower cash-flow requirements vary by program. Confirm the current written draw terms before relying on rehab advances.

    Selling Costs

    Sale-side costs may include brokerage compensation, transfer or recording taxes, title and settlement fees, concessions, and other transaction-specific charges. They vary by state, municipality, contract, and deal structure. Replace the default with quotes or estimates specific to the property; this input is not a universal range.

    Worked Example: Evaluating a Fix and Flip

    Hypothetical inputs: a $210,000 purchase, $55,000 rehab, $320,000 ARV, six-month hold, 10% rate, 3% purchase costs, and 8% sale costs. The figures below apply this page's simplified model only; they are not market comps, lender terms, or a deal recommendation.

    • Purchase Price: $210,000
    • Rehab Budget: $55,000
    • Closing Costs (purchase): $6,300 (3%)
    • Modeled purchase advance: $199,500 (95% of purchase; simplified tool assumption)
    • Interest (10%, 6 months): ~$9,975
    • Modeled project cost before sale costs: $210,000 + $55,000 + $6,300 + $9,975 = $281,275
    • ARV (sale price): $320,000
    • Selling Costs (8%): -$25,600
    • Modeled profit after sale costs: $320,000 - $281,275 - $25,600 = $13,125
    • Modeled cash investment for ROI: $10,500 down payment + $55,000 rehab + $6,300 closing costs = $71,800
    • Modeled ROI: $13,125 / $71,800 = ~18.3%

    This is an illustrative model, not a quote or prediction. Change the hold, rate, sale-cost, tax, insurance, utility, and contingency assumptions to fit a specific property. The displayed cash-on-cash figure also depends on the calculator's assumed purchase financing and does not include every source and use of cash. Confirm the inputs, include missing costs, and get actual lender/title/contractor estimates before submitting an offer.

    When to Use Fix and Flip Financing

    Fix-and-flip loans are short-term, interest-only financing designed for properties that will be renovated and resold within 6 to 18 months. They are the right tool in specific situations:

    • Distressed acquisitions -- properties purchased below market value that need renovation before they can be resold or refinanced. Conventional lenders will not finance these.
    • Speed-to-close deals -- foreclosures, estate sales, and off-market opportunities where the seller needs to close in 10-21 days. Fix-and-flip lenders are built for fast closings.
    • Scaling beyond personal capital -- leveraging a lender's capital for both the acquisition and the rehab lets you run multiple projects simultaneously instead of tying up all your cash in one property.
    • BRRRR strategy front-end -- buy distressed, renovate, rent, then refinance into a long-term DSCR loan. The flip loan covers the acquisition and rehab phase before you stabilize the asset.
    • Auction and wholesale purchases -- when you need proof of funds and fast execution, a pre-approved fix-and-flip line gives you the ability to move on tight timelines.

    Frequently Asked Questions

    What profit margin should a house flip target?

    There is no universal profit target. The required cushion depends on property price, project size, local sale liquidity, renovation scope, leverage, hold time, and your reserves. Stress-test a larger rehab budget, longer hold, lower sale price, and higher costs; the calculator cannot decide whether the risk fits your situation.

    Should I use gross profit or cash-on-cash return to evaluate a flip?

    Use both. Gross profit tells you the raw dollar spread -- what you actually take home. Cash-on-cash ROI tells you how efficiently your own capital is working. A $40,000 profit on $80,000 of your own cash (50% ROI) is a different decision than $40,000 profit on $200,000 of your own cash (20% ROI). If you can achieve similar gross profit with less cash out of pocket by using leverage, your capital goes further.

    What costs do new flippers usually miss?

    Items omitted or understated often include taxes, insurance, utilities, permits, inspection fees, lender and draw charges, contingency, price reductions, concessions, and carrying costs after rehab while the property is listed. Check local quotes and project details; there is no one percentage that fits every scope or market.

    How much of my own cash do I need for a flip?

    Cash required depends on the purchase advance, eligible rehab draws, closing and third- party costs, initial reserves, and whether you must pay for work before reimbursement. Use a written term sheet and settlement estimate for a real deal; this calculator's modeled ROI denominator is not a complete cash-to-close estimate.

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