Fix and Flip Calculator | Profit, ROI & 70% Rule | Lofty
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Fix and Flip Calculator
Model a flip from purchase to resale: rehab, holding, and hard-money costs, net profit at the ARV, ROI on cash invested, the 70% rule check, and the sale price where you break even.
Your numbers
Property
- Purchase price
- Purchase closing costs
- Rehab budget
- After repair value (ARV)
- Expected resale price after renovation.
- Holding period months
Sale
- Selling costs %
Expenses
- Monthly holding costs
Financing
- Loan % of purchase
- Interest rate %
- Points %
What is a fix and flip calculator?
A fix and flip calculator estimates the net profit on a renovation resale by subtracting purchase, rehab, holding, financing, and selling costs from the after repair value (ARV). It also checks the deal against the 70% rule, pay no more than 70% of ARV minus rehab costs, and converts profit into ROI and an annualized return based on the holding period.
What your scenario is telling you
Healthy profit cushion
Projected net profit of $42,563 leaves room to absorb a rehab overrun or a slower sale.
Slightly above the 70% rule max offer
The 70% rule caps the offer at $162,000 and the price is $170,000. Within about 5% is workable in competitive markets, but the cushion is thinner than the classic buy box.
Strong return on cash
ROI of 42% on invested cash clears the 20%+ bar most flippers target per project.
How investors usually read these numbers
| Metric | Often strong | Watch out | Why it matters |
|---|---|---|---|
| Net profit | $30,000+ or 10%+ of ARV | Below $15,000 | Thin paper margins get eaten by surprises. |
| ROI on cash | 20% to 40%+ per project | Below 10% | Flip returns must compensate for various risks. |
| 70% rule | Purchase at or below 0.70 x ARV - rehab | More than 5% above the max offer | Overpaying at purchase is the number-one cause of losing flips. |
| Holding period | Under 6 months | Over 9 months | Every month adds holding and interest costs. |
| Financing cost | Under 8% of project cost | Above 12% | Points plus double-digit interest compound quickly. |
How to run a fix and flip analysis
Enter purchase price and closing costs
- Use your contract price and typical buyer closing costs for the market.
Budget the rehab and set the ARV
- Get contractor bids for the rehab and pull sold comps for the ARV.
Set the holding period and monthly costs
- Typical flips run 4 to 9 months from purchase to resale.
Add financing terms
- Hard money typically funds 80% to 90% of purchase at 10% to 12% interest-only plus 1 to 3 points.
Set selling costs
- Agent commissions plus seller closing costs usually total 6% to 8% of the resale price.
Read profit, ROI, and the 70% rule check
- Review net profit, ROI on cash, annualized return, and the break-even sale price.
The math behind the result
Core formulas
- Loan amount = purchase price x loan % of purchase.
- Financing cost = loan x points % + loan x interest rate x (holding months / 12).
- Total project cost = purchase + closing costs + rehab + holding costs + financing cost + selling costs (% of ARV).
- Net profit = ARV - total project cost.
- Cash invested = down payment + closing costs + rehab + holding costs + financing cost.
- ROI on cash = net profit / cash invested.
Expert takeaways
- Accuracy is key; pad rehab budgets and rely on solid comps.
- The 70% rule provides a safety margin; in highly competitive markets, some stretch to 75%-80%.
- Timely execution is crucial; every extra month adds costs.
- Understanding taxes on profits is fundamental; budget accordingly.
Key terms in plain English
- ARV: Expected resale price after repairs.
- 70% rule: Max offer calculation for flippers.
- Hard money loan: Short-term funding option primarily based on property value.
- Break-even sale price: The price at which all costs are covered.