Strategies

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.

Run the numbers automatically

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

FAQ

What's a good flip ROI?
Many flippers target 20%+ return on cash, with enough profit (often $25k+) to justify the risk and effort. Annualize it to compare deals.
Should I always follow the 70% rule?
It's a useful screen, but in competitive or high-value markets a deal can break the rule and still be profitable. Always confirm with a full cost build-up.

← Or start with the free Quick Calculator