Fix and Flip Calculator: Profit, ROI & the 70% Rule
A flip looks simple (buy low, renovate, sell high), but holding costs, financing and selling fees quietly eat the margin. Here's how to calculate the real profit before you commit.
The flip profit formula
Profit = Sale Price − Selling Costs − Purchase − Closing − Rehab − Holding Costs. The two most underestimated pieces are holding costs (loan interest, taxes, insurance and utilities for every month you own it) and selling costs (6-8% of the sale price).
The 70% rule
A classic screen: don't pay more than 70% of ARV minus rehab. On a $290k ARV with $44k rehab, that's a max offer of about $159k. It builds in room for costs and profit. Treat it as a guardrail, not a guarantee.
Annualized ROI matters
A 35% return in six months is far better than 35% over two years. Always look at the annualized return so you can compare flips of different lengths fairly.
Fix & Flip / BRRRR Analyzer
Stop computing this by hand. The Fix & Flip / BRRRR Analyzer does it for you instantly, with a clear verdict at the end. One-time $34, works in Excel & Google Sheets.
View the Fix & Flip / BRRRR Analyzer