Fix and Flip Calculator
Model every cost in a flip and see the profit that is actually left at closing.
Fix and flip profit calculator
Why the spread is not the profit
The most common error in flipping is treating the gap between purchase price and resale price as profit. Buy at $180,000, sell at $330,000, and it looks like $150,000. It is not. Renovation, financing, holding and selling costs consume most of that gap.
On a typical six month project, selling costs alone run around seven percent of the sale price. Add origination points, interest for the full holding period, property taxes, insurance and utilities, and the real number is usually less than a third of the headline spread.
The five cost buckets
| Cost bucket | What it includes | Commonly missed |
|---|---|---|
| Acquisition | Purchase price, closing costs, title | Transfer taxes and inspection fees |
| Renovation | Materials, labour, permits | Contingency for what you find behind the walls |
| Financing | Origination points, interest, draw fees | Interest accrues for the whole hold, not the renovation |
| Holding | Taxes, insurance, utilities, maintenance | Every month the property sits unsold |
| Disposition | Agent commission, concessions, transfer tax | Buyer requested repairs after inspection |
Holding costs are a function of time
Holding and financing costs scale with the months you own the property, and that is the variable investors control least well. A project that runs three months long does not just cost three extra months of interest. It also costs three months of taxes, insurance and utilities, and it may trigger an extension fee on the loan.
Model your realistic timeline, then model it again with two extra months. If the deal only works on the optimistic schedule, it is not a deal, it is a bet on the schedule.
What margin is enough
A net profit around fifteen percent or more of the after repair value gives you room to absorb an overrun or a soft market. Between eight and fifteen percent is workable for experienced operators with reliable contractor pricing. Below eight percent, a single surprise turns a profitable project into a loss.
Establish a defensible after repair value first with the ARV calculator, then see terms on the fix and flip loan page.
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