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FinToolSuite
Updated April 20, 2026 · Real Estate · Educational use only ·

Fix and Flip Calculator

Property flip profit.

Calculate fix-and-flip profit and ROI for a property investment from purchase price, rehab cost, after-repair value, and selling costs.

What this tool does

This calculator models the profit and return on investment for a property flip project. It works by subtracting all project costs—purchase price, rehabilitation expenses, and holding costs—from the expected sale price, then deducting selling costs as a percentage of that sale price. The result shows your net profit and ROI based on total cash invested. The purchase price and rehabilitation cost typically have the largest impact on the final outcome. A common scenario involves an investor buying an undervalued property, budgeting renovation work, holding the property while work completes, then selling at market rate. The calculator does not account for financing costs, tax implications, or market timing risk. Results are for educational illustration of how different cost inputs affect project profitability.


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Formula Used
Sale price
Selling costs %
Purchase
Rehab
Holding

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

Fix and flip calculator measures profit from buy-renovate-sell strategy. Profit = Sale Price - (Purchase + Rehab + Holding Costs + Selling Costs). 150k purchase + 40k rehab + 6k holding + 15k selling costs (7%) = 211k total cost. 250k sale = 39k profit (18% ROI). Industry rule: target 20%+ ROI for time/risk involved.

Example: distressed property 150k purchase, 6-month rehab 40k, holding costs 6k (insurance, taxes, financing during rehab), sells for 250k, selling costs 7% (17.5k agent + closing). Net proceeds 232.5k. Total cost 196k. Profit 36.5k. ROI 18.6%. Annualised (6 months): 37%. Decent flip but with significant execution risk.

Fix and flip risks: (1) ARV doesn't materialise (overpriced for area), (2) Rehab over budget (always 20-30% overrun), (3) Sale takes longer (more holding costs), (4) Market shifts during rehab. Most flips fail not from bad math but from optimistic assumptions. Use 70% rule: max purchase = (ARV × 0.70) - rehab. Building margin into purchase price reduces downside if anything goes wrong.

Run it with sensible defaults

Using purchase price of 150,000, rehab cost of 40,000, holding costs of 6,000, expected sale price of 250,000, the calculation works out to 36,500.00. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Purchase Price, Rehab Cost, Holding Costs, Expected Sale Price (ARV), and Selling Costs % — do not pull with equal force. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

How the math works

Profit = sale price minus selling costs minus all input costs (purchase + rehab + holding).

Why investors run this

Most people's intuition for compounding is wrong — not because the math is hard, but because linear thinking doesn't account for curves. Running numbers through a calculator like this one is the cheapest way to recalibrate that intuition before making an irreversible decision about contribution rate, asset mix, or retirement age.

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. The number represents one scenario rather than a forecast.

Example Scenario

££150,000£40,000£6,000 cost vs ££250,000 sale = 36,500.00 profit.

Inputs

Purchase Price:£150,000
Rehab Cost:£40,000
Holding Costs:£6,000
Expected Sale Price (ARV):£250,000
Selling Costs %:7
Expected Result36,500.00

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

The calculator computes flip profit by subtracting all costs from net sale proceeds. It applies the selling costs percentage to the expected sale price to derive selling costs in currency terms, then deducts this figure along with the purchase price, rehab cost, and holding costs from the sale price. The model assumes selling costs are a fixed percentage of sale price, all costs are incurred as stated with no additional fees or financing charges, and holding periods and market conditions remain stable. It does not account for income tax, capital gains tax, transaction timing effects, or variability in actual selling costs.

Frequently Asked Questions

Target profit margin?
Industry target: 15-20% net profit on total investment. Below 10%: not worth time/risk. Above 25%: exceptional or you're missing costs. Calculate worst case (sale 10% below ARV, rehab 20% over) - if still profitable, deal has margin of safety. Most failed flips: optimistic ARV + rehab budget.
70% rule?
Max purchase price = (ARV × 0.70) - rehab cost. ARV 250k - 40k rehab = 135k max purchase. Wholesalers and serious flippers use this rigidly. If you can't get property at this price, walk away - too thin on margin for risk involved. The discipline of 70% rule prevents most flip disasters.
Common cost overruns?
(1) Hidden structural issues (foundation, roof, electrical, plumbing). (2) Surprise mould/asbestos remediation. (3) Permit delays adding holding costs. (4) Contractor disputes and re-work. (5) Material price increases mid-project. Budget 20-30% rehab buffer minimum. 40k estimated rehab → assume 52k actual.
Flip vs hold strategy?
Flips: 6-12 month projects, 15-25% ROI, capital recycled fast, taxable as ordinary income. Holds: long-term, capital tied up, taxed favourably (capital gains, depreciation). Flipping pays the bills; holding builds long-term wealth. Most successful real estate investors do both - flip for cash, hold for wealth.

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