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.
Inputs
Results
- 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
- Financed by loan: $220,500 (repaid at sale)
- ARV (sale price): $320,000
- Total all-in costs: $287,625
- Net profit (ARV − all costs): $32,375
- ROI: 117.73% (6 months)
- Annualized ROI: 235.45%
- Max purchase (70% rule): $179,000
- Your purchase price: $200,000
- ✗ Above 70% rule (-$21,000 over)
Tip: The 70% rule ensures adequate profit margin. Hard money lenders typically offer 90% LTC at 10-12% interest.
When to Use This Calculator
Use this calculator when analyzing a potential house flip. It helps you verify that a deal follows the 70% rule, estimate total profit after all costs (purchase, rehab, holding, selling), and calculate your return on investment based on the expected hold period.
How It Works
This calculator models the complete flip cycle from purchase through sale. It starts with the 70% rule check (max purchase = ARV x 70% - rehab costs), then calculates total project cost including holding costs over your estimated timeline, and finally projects net profit after all selling expenses. ROI is annualized based on hold period.
Key Terms
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.
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 with Local Assumptions
Select a city to pre-fill the calculator with local market defaults.