Flip Calculator
Model the complete fix-and-flip financial picture — including every holding and transaction cost.
Free to start. No spreadsheets.
Visual Walkthrough
A flip has four distinct cost phases — investors who model only 2 of them consistently get surprised by the other 2:
BUY
- Purchase price
- Inspection fee
- Closing costs (2–3%)
REHAB
- Materials
- Labor contracts
- Permits (5–10%)
HOLD
- Hard money interest
- Insurance
- Property taxes
- Utilities
SELL
- Agent comm. (5–6%)
- Title & escrow (1–2%)
- Staging ($2–5k)
- Concessions (1–2%)
Flip ROI Targets
Minimum
12%
Below = re-negotiate
Target
15–20%
Standard goal
Strong
25%+
Excellent deal
The Complete Flip Formula — Every Cost Category
Fix-and-flip profitability requires modeling every cost category. The simplified formula (ARV − purchase − rehab) misses 4-5 additional cost buckets that regularly consume $25,000-$45,000 on a typical deal.
Worked Example: Denver, CO — 4/2 SFR
Cost Stack
Purchase price: $195,000
Buying costs (2.5%): $4,875
Rehab budget: $44,000
Hard money (6 mo @ 12%): $11,700
Insurance + taxes (6 mo): $3,600
Staging: $2,800
Selling costs (7.5% of $295k): $22,125
Total: $284,100
Results
ARV: $295,000
Total outlay: $284,100
Net profit: $10,900
ROI: 3.8%
⚠ Verdict: Pass. Negotiate purchase price to $175,000 to reach $30,900 profit (10.8% ROI).
Pro Tip: Run the flip calculator at three purchase prices — asking price, your initial offer, and your MAO. This shows you exactly how much profit each $5,000 in negotiation adds to your bottom line, which dramatically improves your negotiating conviction.
Fix-and-Flip Financial Modeling
What the Flip Calculator Does
Calculates the complete financial lifecycle of a residential fix-and-flip, from initial acquisition through final sale. Models purchase price, rehab cost, monthly holding costs (hard money interest, insurance, taxes, utilities), buying transaction costs, selling commissions and title fees — producing an accurate net profit and ROI figure that matches real-world outcomes.
Why Full Cost Modeling Changes Everything
Investors who calculate only (ARV - purchase - rehab) routinely believe they're making $50,000-$70,000 on deals that actually net $20,000-$35,000 after holding and transaction costs. The 'hidden' $20,000-$30,000 in carrying and transaction costs is real money that disappears without full cost modeling. Run the complete calculator on every deal, not just the easy math.
Flip Underwriting Sequence
Lock In Your Cost Stack
Enter purchase price, buying costs (2-3%), full rehab estimate (with contingency), and your projected hold time. Be conservative — use 7 months if you'd hope for 5.
Model Holding Costs by Month
Input your hard money rate and loan amount to calculate monthly interest. Add insurance, taxes, and utilities. These compound monthly — every extra month is real money out of profit.
Calculate Net Profit and ROI
Selling costs (7-9% of ARV) are deducted last. Net Profit = ARV minus total cost stack. ROI = net profit divided by total capital deployed. Both numbers must be satisfactory before you sign.
Most investors lose money here — avoid these mistakes:
- Budgeting 3-4 months holding time when first flips routinely take 6-9 months — each extra month costs $1,500-$3,000 in holding costs.
- Ignoring hard money origination points (1-3%) and extension fees — these are paid upfront and add substantially to the actual loan cost.
- Underbudgeting selling costs at 5-6% when the real total (commissions + title + concessions) typically runs 7-9% of sale price.
Example Scenario
Fix & Flip Profit Planner
Real-World Application
How experienced flippers protect their margin:
- ✓Budget 7-8 months minimum — not 4. Every unexpected month adds $1,500-$3,000 in unplanned holding costs on a typical deal.
- ✓Get contractor bids AND sign contracts before closing on the property. Never assume a verbal agreement survives the purchase.
- ✓Line up a Realtor before closing — know your listing agent, pricing strategy, and expected days-on-market before you buy.
- ✓Model selling costs at 8% of ARV minimum: 6% commissions + 1% title/escrow + 1% concessions/buyer credits.
- ✓Calculate your annualized ROI alongside deal ROI. A 6-month flip at 18% ROI beats a 14-month flip at 22% ROI when annualized.
Fix and Flip — What Investors Need to Know
Q.What's the difference between gross profit and net profit on a flip?
Gross profit = ARV minus purchase price. It ignores all other costs and is a completely useless number for investment decision-making. Net profit = ARV minus purchase price minus rehab minus all holding costs minus all transaction costs (buying + selling fees). Net profit is the only number that matters. Many 'profitable-looking' flips have strong gross profit but thin or negative net profit once all costs are honestly modeled.
Q.What's the typical timeline from purchase to sale on a flip?
Budget 7-9 months for a mid-level rehab flip as a conservative baseline. The typical breakdown: 2-4 weeks for permits and contractor mobilization, 6-10 weeks of active construction, 2-4 weeks of punch-list and final inspections, 2-4 weeks of professional staging and photography, and 4-8 weeks on the market before closing. Experienced flippers on their 5th+ project can compress to 5-6 months. First-time flippers regularly hit 10-12 months.
Q.How do I calculate the cost of hard money on a flip?
Hard money costs include: (1) Origination points (1-3% of loan amount, paid upfront at closing), (2) Monthly interest (loan balance × annual rate ÷ 12), (3) Extension fees if the project runs long. Example: $140,000 loan at 12% annual rate + 2 origination points. Upfront cost: $2,800. Monthly interest: $1,400. Six-month hold: $2,800 + ($1,400 × 6) = $2,800 + $8,400 = $11,200 total hard money cost.
Q.Should I include staging costs in my flip budget?
Yes — staging is not optional for maximizing ARV. Professional staging on a mid-range flip costs $1,500-$4,000 for the first month and $500-$800/month thereafter. Studies show staged homes sell for 1-5% more and spend 30-40% less time on market. The math: a $8,000 staging investment that boosts your sale price from $270,000 to $280,000 returns $10,000 — a 125% ROI on the staging cost. Budget it from day one.
Q.How do I handle a flip that's taking longer than projected?
Every month over budget adds 1-1.5% of your loan balance in holding costs. On a $150,000 hard money loan at 12%, that's $1,500/month. If you're 3 months over budget, that's $4,500 in unplanned costs. Actions to take immediately: (1) assess whether completing the flip is still profitable vs. selling as-is, (2) contact your hard money lender early about extensions — they're easier to negotiate before maturity, (3) add any 'almost done' rooms to the listing while final work continues to reduce days on market.
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You can calculate this manually, or use our deal analyzer.