Fix-and-flip profit calculator

See what a flip actually leaves you after repairs, holding costs, closing costs and the cost of selling. Every line is shown, so you can see which number makes or breaks the deal.

Projected flip profit
Sale proceeds (ARV)	$200,000.00
Less purchase price	-$120,000.00
Less repairs	-$35,000.00
Less holding cost$1,200.00/mo × 5 mo	-$6,000.00
Less purchase closing	-$3,000.00
Less selling costs	-$16,000.00
Projected flip profit	$20,000.00

Return on cash: 11.1%
Margin on ARV: 10.0%

Estimates only: not an appraisal, brokerage price opinion, or offer of credit. ARV, repair, and cost figures are user-supplied assumptions; verify independently before making an offer.

What goes into flip profit

A flip makes money only after every cost between buying and selling is paid. The calculator subtracts each one from the sale price (the ARV):

Purchase price. What you pay the seller. Leave it blank and the calculator assumes you buy at the 70% rule offer.
Repairs. The full rehab budget, including a contingency.
Holding costs. Monthly interest and financing costs (not principal repayments), taxes, insurance and utilities, times the months you hold the property. Projects run long more often than short.
Purchase closing costs. Title, escrow, lender and recording fees when you buy.
Selling costs. Agent commissions and seller closing costs, entered as a percentage of ARV (8% by default), plus any flat amount such as concessions.

Return on cash and margin

Return on cash divides profit by the total cash in the deal. This version assumes an all-cash purchase, so every cost counts as cash invested. If you use a loan, your actual cash return will differ.

Margin divides profit by the sale price. It tells you how much room you have if the ARV comes in lower than planned. A thin margin means a small drop in sale price can erase the profit.

If you track deals in Deal Harbor, the same analyzer is built into every deal page and keeps the last run with the deal.

Worked example

You buy a house for $120,000 that should sell for $200,000 after a $35,000 rehab. You expect to hold it five months at $1,200 a month, pay $3,000 to close the purchase, and pay 8% of the sale price to sell.

Sale proceeds: $200,000
Purchase: $120,000
Repairs: $35,000
Holding: $1,200 × 5 months = $6,000
Purchase closing: $3,000
Selling costs: 8% of $200,000 = $16,000
Total cost: $180,000

Projected profit is $20,000. Return on cash is 11.1% ($20,000 ÷ $180,000) and margin is 10.0% ($20,000 ÷ $200,000). Notice that the purchase price is $15,000 above the $105,000 the 70% rule would allow. That is why the profit is thinner than the classic rule promises. Try the wholesale MAO calculator to see the rule's number.

Run this on a real deal

Deal Harbor keeps the analysis on the deal record next to the contacts, documents and e-signatures. Every new workspace starts with a 30-day free trial of the Starter plan, no card required.

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Common questions

How do you calculate profit on a fix and flip?

Start with the expected sale price (ARV) and subtract the purchase price, repairs, holding costs for the months you own it, closing costs when you buy, and selling costs such as commissions. What is left is your projected profit before taxes.

What is a good profit margin on a flip?

There is no single right number. It depends on your market, your risk and the size of the project. Many investors use the 70% rule as a screen because it builds in room for costs and profit. Treat any target as your own judgment, not a promise.

Does this calculator include loan interest?

Add the interest and financing costs, not principal repayments, to the monthly holding cost. The calculator already counts the full purchase price, so including principal would count it twice. The return on cash figure assumes an all-cash purchase, so if you borrow, your cash invested is lower and your actual return will be different.

Does it include taxes on the profit?

No. The result is profit before income taxes. Talk to a tax professional about how flip profit is taxed in your situation.