Fix & Flip Calculator (70% Rule)

Analyze house flipping deals using the 70% rule. Calculate profit, ROI, holding costs, and verify your purchase price follows investor guidelines.

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Inputs

Property Details
Financing
Monthly Holding Costs
70% Rule Check

Results

Net profit
-$188,125
ROI (annualized)
-1368.18%
Cash needed
$27,500
Cost breakdown
  • Purchase price: $200,000
  • Rehab costs: $45,000
  • Purchase closing: $3,000
  • Holding costs (6 mo): $14,025
  • Sale closing (8%): $25,600
  • Total costs: $287,625
  • Loan payoff: $220,500
Profit analysis
  • ARV (sale price): $320,000
  • Total all-in costs: $287,625
  • Gross profit: $32,375
  • Loan payoff: $220,500
  • Net profit: -$188,125
  • ROI: -684.09% (6 months)
  • Annualized ROI: -1368.18%
70% Rule Check
  • Max purchase (70% rule): $179,000
  • Your purchase price: $200,000
  • ✗ Above 70% rule (-$21,000 over)
Formula: Max Price = (ARV × 70%) − Rehab

Tip: The 70% rule ensures adequate profit margin. Hard money lenders typically offer 90% LTC at 10-12% interest.

How to Use This Fix & Flip Calculator (Mini Guide)

Analyze house flipping deals using the 70% rule, calculate profit after holding costs and sale expenses, and ensure you're not overpaying for the property.

Mini Guide
On this page

What this calculator measures

Estimates net profit on a fix-and-flip deal after all costs (purchase, rehab, holding, financing, sale).

Checks your purchase price against the 70% rule to ensure margin.

Calculates ROI and annualized ROI based on hold period.

The 70% rule explained

Max purchase price = (ARV × 70%) − Rehab Costs.

This leaves ~30% margin for profit, holding costs, and sale costs.

Conservative flippers use 65%, aggressive markets may go to 75%, but rarely higher.

Critical inputs

ARV: use conservative comps — optimistic ARV is the #1 reason flips fail.

Rehab costs: add 10-20% buffer for unknowns.

Holding period: longer holds = higher costs (interest, taxes, utilities).

Sale closing costs: typically 8-10% (6% realtor, 2-4% closing/transfer).

What makes a good flip

Net profit ≥ $30K-$50K minimum (worth your time and risk).

Follows 70% rule with conservative ARV and rehab.

Hold period ≤ 6 months (less carry cost risk).

Annualized ROI ≥ 20-30%+.

Common mistakes

Underestimating rehab — always add a buffer.

Overestimating ARV — use sold comps, not active listings.

Ignoring holding costs — they add up fast on longer projects.

Paying above 70% rule without solid justification.

Try it with local assumptions

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FAQ

What is MAO in wholesaling?
MAO (Max Allowable Offer) is the highest price you can contract a property for while leaving enough room for repairs, your assignment fee, and the end buyer's margin.
What MAO % should I use?
Common heuristics range from 65% to 75% depending on market heat, financing, and rehab risk.
Does this include closing costs?
You can include them in the 'Other costs' field. Different buyers will treat these differently.