Fix and Flip Profit Calculator
Before you commit to a flip, know your numbers. This calculator estimates your net profit, margin, and minimum ARV needed to break even — including holding costs, financing, and contingency.
How to Estimate Fix and Flip Profit
A flip is profitable only if the after repair value clears every dollar the project consumes, so this calculator builds the cost side first and then works back to profit, margin, and the ARV you cannot afford to miss.
If the margin here looks thin, it's worth testing whether the same property pencils out better as a long-term hold — the rental property ROI calculator runs that comparison using the same purchase price.
Before running the full numbers on a new listing, many flippers first screen it with the 70% rule calculator to get a quick maximum offer from just the ARV and repair estimate.
Total Project Cost: Rehab, Holding, and Contingency
Your total cost includes the purchase price, rehab, purchase closing costs, holding costs during the renovation period, contingency reserve, and financing costs on the rehab loan.
Planning to keep the property afterward instead of selling? Swap this short-term rehab financing for a traditional loan in the mortgage amortization calculator to see the long-term payment instead.
Net Profit
Net profit is the ARV minus your total project cost and sale closing costs (agent commissions, transfer taxes, etc.).
Profit Margin
Profit margin expresses net profit as a percentage of your total cash basis in the deal, so you can compare flips of different sizes on equal footing.
Break-Even ARV (After Repair Value)
The lowest after-repair value at which you don't lose money, accounting for sale closing costs.
Sensitivity Analysis: If the ARV Comes In Low
If the ARV comes in 5% lower than expected, this shows the impact on your profit. Always plan for conservative outcomes.
Selling the Flip vs. Refinancing Into a Rental
Everything above assumes you sell at the ARV once the rehab is done. An investor who instead wants to keep the unit as a rental refinances against that same ARV rather than selling into it, often pulling most or all of the original cash back out in the process — the exact mechanics the BRRRR calculator walks through, including the refinance loan amount, the cash left in the deal, and the cash flow that remains afterward.
Worked Example
A $250,000 purchase with a $60,000 rehab budget, targeting a $420,000 after-repair value (ARV) after a 6-month hold at $1,200/month in holding costs, 2% purchase closing costs, 6% sale closing costs, a 10% contingency reserve on the rehab budget, and rehab financing at 10%/year.
Inputs Used
- Purchase Price: $250,000
- Rehab Costs: $60,000
- ARV (After Repair Value): $420,000
- Holding Period: 6 months
- Holding Costs: $1,200/mo
- Purchase Closing Costs: 2%
- Sale Closing Costs: 6%
- Contingency: 10% of rehab
- Financing Rate: 10%/yr
Computed Result
- Net Profit: $63,600
- Profit Margin: 20.00%
- Total Project Cost: $331,200
- Min ARV to Break Even: $352,340
- Profit if ARV is 5% Lower: $43,860
How to Read This Result
Experienced flippers often target net margins in the 10-20% range as a common industry benchmark — not a guarantee, and it varies with market and risk tolerance. This example's 20.00% margin sits at the strong end of that range. The sensitivity check shows that even if the ARV comes in 5% lower than expected, the project still nets $43,860 — a useful gut-check before committing to a deal, since actual sale prices rarely land exactly on the original ARV estimate.
Fix and Flip Profit Calculator FAQs
What is a good profit margin for a flip?
Most experienced flippers target 10-20% net margins. Margins below 10% may not justify the risk and effort involved.
What should I include in holding costs?
Holding costs cover loan interest, property taxes, insurance, utilities, and HOA fees during the renovation period. Budget conservatively.
How do I estimate ARV?
Look at comparable sales (comps) of renovated similar properties within 1 mile, sold within the last 3-6 months. Adjust for differences in size, condition, and location.
Why include a contingency?
Unexpected issues always arise during renovation. A 10-20% contingency on rehab costs is standard practice to avoid budget overruns.