Fix and Flip Calculator

Q: What is the 70% rule in house flipping?

The 70% rule says an investor should pay no more than 70 percent of a property's after-repair value (ARV) minus rehab costs. It builds in a margin for holding costs, selling costs, and profit. The formula is: Maximum Allowable Offer = (ARV x 0.70) - rehab budget.

Q: What costs should I include in a flip analysis?

Beyond purchase and rehab, account for holding costs (loan interest, taxes, insurance, utilities) and selling costs (agent commissions and closing, usually 6 to 8 percent of the sale price). Leaving these out is the most common way flippers overpay.

Q: How much profit should a flip make?

Many active flippers target a minimum net profit of 10 to 15 percent of ARV, or a fixed dollar floor, to absorb surprises. This calculator shows your projected net profit and ROI so you can compare a deal against your own threshold.

Underwrite the flip before you make the offer.

Purchase price$Rehab budget$After-repair value (ARV)$Holding / carry costs$Selling costs%

70% rule max offer: $214,500

Your purchase price is at or below the 70% rule ceiling. Good margin of safety.

Projected net profit

$76,200

27% ROI · 20% of ARV

Purchase + rehab$265,000

Holding costs$13,000

Selling costs (8%)$30,800

All-in cost$308,800

Fund this flip

Inputs are pre-filled with example figures, edit them to match your deal. Estimates only, for planning purposes, and not a rate quote, an offer, or a commitment to lend. Your actual rate and terms depend on a full review of your deal.

Before you tie up a flip, the numbers have to work. This calculator estimates your net profit, return on investment, and the maximum allowable offer (MAO) under the classic 70% rule, so you know whether a deal pencils out before you sign anything.

Common questions

What is the 70% rule in house flipping?

What costs should I include in a flip analysis?

How much profit should a flip make?

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