Asset Lift Lending

    Fix & Flip Calculator

    Estimate your profit, ROI, and total costs before you make an offer. Adjust the numbers to model different scenarios.

    Deal Numbers

    Assumptions

    Projected Results

    Enter your purchase price and ARV to see projected results.

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    How to Underwrite a Flip More Realistically

    A fix and flip calculator is most useful when it helps you pressure-test the deal instead of confirming the number you want to see. The cleanest projects usually have enough spread to survive one or two things going wrong without wiping out the margin.

    Start with the purchase, rehab budget, and after-repair value. Then be harder on the assumptions that investors most often understate: carry time, financing cost, and selling friction. If the deal only works under optimistic timelines, it probably does not have enough room.

    Watch the ARV

    Use closed comparable sales from the exact neighborhood and avoid stretching into the highest comp unless the finish level truly supports it.

    Model the hold honestly

    Permits, contractor delays, inspection lag, and resale timing all extend carrying cost. A six-month hold can become eight quickly.

    Protect cash reserves

    Gross profit can look strong while the actual cash required is still too high. Compare projected margin against the cash you need to control the project.

    Fix and Flip Calculator FAQ

    What profit margin should a house flip target?

    There is no universal threshold, but strong flips usually have enough projected spread to absorb rehab changes, financing drag, and a softer resale than expected. If the margin disappears with minor pressure, the deal is likely too thin.

    Should I judge a flip by gross profit or ROI?

    You should use both. Gross profit tells you whether the project is worth the effort in absolute dollars, while ROI shows whether your own capital is being used efficiently compared with other opportunities.

    What numbers do investors most often miss?

    The most common misses are interest carry, utilities, insurance, price reductions, and extra time between rehab completion and the final sale. Those items usually matter more than shaving a few points off the rehab line.

    What This Fix and Flip Calculator Does

    This calculator models the full cost structure of a house flip so you can see whether the projected spread justifies the risk before you submit an offer. Enter the purchase price, renovation budget, and after-repair value (ARV), then adjust your hold period, interest rate, closing costs, and selling costs. The tool outputs your total project cost, estimated profit, and cash-on-cash return -- the three numbers that determine whether a deal is worth pursuing.

    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.

    Key Terms Defined

    ARV (After-Repair Value)

    The estimated market value of the property after renovations are complete. Lenders and investors base this on sold comparable properties in the area with similar square footage, condition, and finish level. Your ARV assumption is the single biggest driver of projected profit -- and the easiest number to get wrong.

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

    LTV compares the loan amount to the property value, while LTC compares it to total project cost (purchase price plus rehab). Fix-and-flip lenders typically cap at 85-90% of purchase price and 100% of rehab, with a combined limit of 70-75% of ARV. Understanding both ratios tells you how much cash you need to bring.

    Holding Costs

    The monthly expenses incurred while you own the property -- loan interest, taxes, insurance, utilities, and any HOA dues. On a $300,000 loan at 10% interest-only, holding costs run roughly $2,500 per month in interest alone before taxes and insurance. Every month of delay erodes profit directly.

    Rehab Draw Schedule

    Most fix-and-flip lenders release renovation funds in stages (draws) as work is completed and inspected. You typically fund work upfront and get reimbursed after a draw inspection. Budget for the cash flow gap between spending and reimbursement.

    Selling Costs

    Agent commissions, transfer taxes, title fees, seller concessions, and closing costs on the sale side. A realistic estimate is 7-9% of the sale price in most markets. New investors often underwrite this at 5-6% and get surprised at the closing table.

    Worked Example: Evaluating a Fix and Flip

    Suppose you find a three-bedroom ranch listed at $210,000 in a neighborhood where renovated comps sell for $320,000. The property needs a full kitchen and bath remodel, new flooring, paint, and landscaping. Here is how the numbers break down:

    • Purchase Price: $210,000
    • Rehab Budget: $55,000
    • Closing Costs (purchase): $6,300 (3%)
    • Loan Amount: $178,500 (85% of purchase) + $55,000 rehab = $233,500 total
    • Interest (10%, 6 months): ~$11,675
    • Taxes + Insurance (6 months): ~$2,400
    • Utilities (6 months): ~$1,200
    • Total Project Cost: ~$286,575
    • ARV (sale price): $320,000
    • Selling Costs (8%): -$25,600
    • Gross Profit: $320,000 - $286,575 - $25,600 = $7,825
    • Cash Out of Pocket: ~$48,175 (down payment + closing + draw float)
    • Cash-on-Cash ROI: ~16%

    At first glance, $7,825 in profit on a six-month project looks thin -- and it is. If rehab runs $10,000 over budget or the hold extends to nine months, this deal loses money. A stronger version of this project would need either a lower acquisition basis (offer $185,000), a tighter rehab scope, or stronger ARV support. That is exactly why you run the calculator before making the offer, not after.

    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 rule, but experienced investors typically want to see at least $25,000-$30,000 in projected profit on a standard residential flip, with enough buffer to absorb a 10-15% rehab overrun and a one- to two-month timeline extension without going negative. If the projected margin is under $15,000, the risk-to-reward ratio rarely makes sense unless you are doing the work yourself and have deep local comp knowledge.

    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?

    The most common blind spots are: holding costs during the listing period (the clock does not stop when rehab ends), draw delays that create cash flow gaps, builder's risk insurance premiums, utility costs during renovation, permit and inspection fees, seller concessions to buyers, and the cost of price reductions if the property sits on the market longer than expected. Build a 10-15% contingency into both your rehab budget and your timeline.

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

    Plan for 10-15% of the purchase price as a down payment, plus closing costs (2-4% of the loan amount), plus enough liquidity to cover draw float and holding costs during renovation. On a $250,000 purchase with a $60,000 rehab, budget roughly $45,000-$65,000 in total cash needed. Some programs offer higher leverage for experienced investors with a track record of completed projects.

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