What This Calculator Does

This calculator models a fix-and-flip from purchase to resale: the acquisition cost, the rehab, the financing cost, the holding cost, the selling cost, and the after-repair value. From those inputs it estimates the total project cost, the profit, the return on investment, and the sale price at which the project breaks even.

Who It's For

It is for flippers, hard money borrowers, agents underwriting flips for clients, and anyone comparing a renovation project against their return targets. It works with your own estimates; it does not know contractor pricing or market values.

What Each Input Means

  • Purchase price: what you expect to pay for the property.
  • Acquisition / closing costs: title, escrow, recording, and other costs to buy.
  • Rehab cost: your estimate of the renovation, ideally built line by line with the Rehab Estimator.
  • Loan amount, rate, points, holding months: how the deal is financed and for how long.
  • Monthly holding costs: taxes, insurance, utilities, HOA, and other carrying costs while you renovate and market.
  • ARV: your estimate of the value after the renovation is complete.
  • Commission and other selling costs: what it will cost to sell.

How the Calculation Works

  • Financing costs = points (loan times points %) plus interest (loan times annual rate divided by 12, times holding months).
  • Total project cost = purchase + acquisition + rehab + financing costs + holding costs.
  • Selling costs = commission (ARV times commission %) plus other selling costs.
  • Estimated profit = ARV minus total project cost minus selling costs.
  • Total cash invested = down payment (purchase minus loan) plus acquisition, rehab, holding, and financing costs you pay in cash.
  • ROI = profit divided by total cash invested.
  • Break-even sale price = total project cost plus selling costs.

What the Output Means

A positive profit means the projected sale covers every cost you entered. ROI tells you how efficiently your cash is working. The break-even price is your floor: if the market will not support selling above it, the deal loses money. Compare the profit and ROI against your own targets before you commit.

Common Questions

  • Should I use the ARV from an appraisal? Use the best estimate you have. Many investors compare several comparable sales and discount for uncertainty.
  • What if I pay cash? Set the loan amount to zero; financing costs drop out and the down payment becomes the full purchase price.
  • Does this include income taxes on the profit? No. Tax treatment varies by investor and entity, and this calculator does not model it.

Limitations

The profit and ROI are only as good as the inputs, and flips are full of surprises: cost overruns, longer holding periods, and softer resale values. The calculator does not model taxes, insurance claims, permit delays, or changes in financing terms. Use conservative numbers and compare against the Rehab Estimator and Holding Cost Calculator for a fuller picture.

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