Know your profit, ROI, and break-even price before you make an offer on a flip. A flip only works if the resale price covers every cost between closing and sale: the purchase, the rehab, loan interest and points, months of holding costs, and the cost of selling. The DealWorthIQ fix and flip calculator puts all of those in one place and shows how much room you have if the rehab runs long or the house sells for less than planned.
Formulas behind the Fix & Flip Calculator
Loan amount: Purchase price − down payment. The calculator finances the purchase only. The rehab is paid in cash, which is how most hard-money and private loans are structured before draws.
Financing costs: Points (loan × points %) + lender fees + interest for the hold period. With an interest-only loan, monthly interest is loan × annual rate ÷ 12. For an amortizing loan, the calculator uses the standard mortgage payment.
Holding costs: (Taxes + insurance + utilities + HOA + maintenance + other) × months held. Every month the property sits unsold adds to the cost, so the hold period matters as much as the rehab budget.
Total project cost: Purchase + buying closing costs + financing costs + rehab + holding costs + selling costs + seller concessions. Selling costs are a percentage of the ARV (agent commissions, title, transfer taxes). This total is also your break-even sale price.
Net profit: ARV − total project cost. ARV (after repair value) is the price you expect the renovated home to sell for.
ROI: Net profit ÷ total cash invested. Cash invested is your down payment, closing costs, loan fees, rehab, interest, and holding costs: the money that actually leaves your pocket.
Margin of safety: (ARV − break-even price) ÷ ARV. How far the sale price can fall before you lose money. Many flippers look for at least 10%.
Frequently asked questions
How do you calculate profit on a fix and flip?
Start with the ARV, then subtract everything the project costs: purchase price, buying closing costs, loan points and fees, interest for the months you hold the property, holding costs, the rehab, selling costs, and any seller concessions. What is left is your net profit.
What is a good ROI on a flip?
Many investors aim for 15% to 20% or more on the cash they invest, with a margin of safety of at least 10% of the ARV. A thin margin can turn into a loss if the rehab runs over budget or the market softens.
What is the 70% rule for flipping?
The 70% rule says to pay no more than 70% of the ARV minus the repair cost. It is a quick screening rule. The fix and flip calculator replaces it with your actual financing, holding, and selling costs, so you see the real profit instead of a rule of thumb.
Does the calculator include selling costs?
Yes. Selling costs are entered as a percentage of the ARV to cover agent commissions, title, and transfer taxes, and seller concessions are entered separately.
Can I save or share a flip analysis?
Yes. Full Access members can save analyses, reopen them later, share a read-only link, and export a PDF report.