Fix & Flip Profit Calculator
Purchase, rehab, ARV, and financing costs — your projected profit and ROI.
Estimate only — excludes utilities, staging, and overruns. The classic screen is the 70% rule: purchase + rehab ≤ 70% of ARV leaves margin for surprises.
How this calculator works
The calculator adds up what the deal costs and subtracts it from what you expect to sell for. Project cost is the purchase price plus the rehab budget. The financing input sets how much of that project cost is borrowed; the rest is your cash in.
Financing cost has two parts. Interest carry assumes an interest-only loan, which is common on flips: the loan amount times the rate, prorated for the months you hold. Origination points are a percentage of the loan amount, paid at closing.
Selling costs are a percentage of the ARV, covering agent commissions and closing costs on the sale. Net profit is the ARV minus project cost, interest carry, points and selling costs. Return on cash invested is that profit divided by the cash you put in.
How to read your result
| Estimated net profit | What's left after the costs the calculator knows about. It doesn't include utilities, insurance and taxes while you hold, staging or overruns, so treat it as a ceiling, not a promise. |
|---|---|
| Return on cash invested | Profit relative to the cash you put in. Leverage raises this number, but it also raises the stakes if the sale price or timeline slips. |
| Cash needed | Your share of purchase plus rehab. It doesn't include closing costs on the purchase or reserves, which lenders commonly want to see. |
| Financing cost (interest + points) | What the money costs for the hold. Add a month or two to your timeline and watch this line; slow sales cost more than most budgets allow for. |
What flip lenders look at
Fix-and-flip programs are built around the property and the plan as much as the borrower. These pieces usually decide leverage and terms; each lender weighs them its own way.
The ARV and its support
Lenders lean on an appraisal and comparable sales. An ARV the comps don't back up is the fastest way to a smaller loan.
Scope of work
A clear, line-item rehab budget makes it easier to size the loan and set up the draw schedule.
Experience
Completed flips usually earn more leverage. First-time flippers can still qualify on many programs, often with more cash in.
Purchase price vs. value
Buying well is the cushion that protects everyone if the market softens during the hold.
Credit and liquidity
Credit in reasonable shape, and enough cash to close and cover carrying costs.
Exit plan
Sell, or refinance into a rental. A clear exit, with a backup, makes the deal easier to support.
A worked example
Example deal: buy at $180,000, budget $45,000 for rehab, and expect an ARV of $300,000. Project cost is $225,000.
The 70% rule says purchase plus rehab should be at or under $210,000 (70% of $300,000). This deal is $15,000 over, so it fails the quick screen. That doesn't kill it, but it leaves less room for surprises.
Finance 85% of the project cost and the loan is $191,250; your cash in is $33,750. Two origination points cost $3,825. Selling costs at 8% of ARV come to $24,000.
Before interest carry, that leaves about $47,175 ($300,000 − $225,000 − $3,825 − $24,000). Enter the rate and hold time from a real quote to see what interest takes out, then subtract your own utilities, insurance and a contingency.
Common questions
What is the 70% rule?
A quick screen: your purchase price plus rehab budget should be at or under 70% of the after-repair value (ARV). It leaves margin for financing costs, selling costs, and surprises.
How much of a flip can be financed?
Fix-and-flip loans commonly cover 80–90% of the purchase and up to 100% of the rehab budget (drawn as work completes), subject to an overall percentage of ARV. Experience and credit affect leverage.
What costs do new flippers forget?
Carrying costs (interest, utilities, insurance, taxes while you hold), selling costs (agent commissions and closing fees, often 7–9% of ARV), and rehab overruns. This calculator includes financing and selling costs — pad your rehab number.
How is ARV determined?
After-repair value is what the property should sell for once the work is done, based on recent sales of comparable renovated homes nearby. Lenders usually confirm it with an appraisal. Be honest with this number, because everything else depends on it.
What if the flip takes longer than planned?
Every extra month adds interest, utilities, insurance and taxes. Run the calculator with a longer hold to see how much cushion you really have, and ask about extension terms before you close.
Your next step
If the margin holds up, line up financing before you make the offer. Planning to keep it as a rental instead? Run the DSCR calculator on the finished property.
Fix & flip loan
Purchase and rehab financing, with rehab funds drawn as work completes.
Learn more →Real estate bridge
Short-term capital to buy or reposition a property quickly.
Learn more →DSCR loan
Refinance a finished property into a long-term rental loan.
Learn more →Checking your options takes about 2 minutes, doesn't affect your credit, and carries no obligation. Capco Capital is a commercial lending advisory firm operated by Capco Capital LLC. We arrange financing through third-party lenders as a loan broker and are compensated by the lender when a loan funds. We are not a lender and are not affiliated with the U.S. Small Business Administration.
Like the numbers? Let's make them real.
Check your options in two minutes with no credit pull and no obligation, or call (337) 270-2036.
