Fix & Flip Profit Calculator
Net profit, ROI and the 70% rule maximum offer.
Inputs
Results
Estimated net profit
$58,150
79.5% return on $73,100 cash in, over 6 months
Your purchase price is above the 70% rule maximum of $200,000. The margin for overruns or a soft market is thin.
$58,150 profit · 79.5% ROI
How this is calculated
A flip's profit is the sale price less every dollar spent acquiring, renovating, holding and selling the property:
profit = ARV − purchase − rehab − buying costs − financing − holding − selling costs
Financing on a flip is usually short-term hard money priced with both points and interest. Points are charged up front on the loan amount; interest accrues only for the months you hold:
points = loan × points% ÷ 100
interest = loan × rate ÷ 100 × months ÷ 12
The 70% rule is the industry's standard offer guardrail. It says never pay more than 70% of the after-repair value minus the rehab budget, leaving roughly 30% to absorb costs and profit:
max offer = ARV × 0.70 − rehab
Return on investment is measured against cash actually out of pocket, not the total project cost, since leverage means you fund only part of it. Annualizing that return lets you compare a fast four-month flip against a slower one:
annualized ROI = ROI × 12 ÷ hold months
The two assumptions that sink most flips are an optimistic ARV and an underestimated rehab. Base ARV on closed comparable sales from the last six months within a tight radius, not on active listings.