Fix and Flip Calculator

Run a fix-and-flip deal: 70% rule max offer, all-in project cost with financing and holding costs, expected profit, and return on cash invested.

Published: 2026-10-03

Updated: 2026-10-03

Quick Answer

Fix and Flip Calculator estimates max allowable offer (70% rule) of $230,000 and loan amount of $224,000 for this scenario.

Key Takeaways

Fix and Flip Calculator estimates max allowable offer (70% rule) of $230,000 and loan amount of $224,000 for this scenario.
At $230,000, the purchase sits $0 inside the 70% rule's max allowable offer of $230,000 (70% of ARV minus rehab), which is the traditional quick screen for whether a flip has enough margin to bother analyzing further.
The 70% rule says a flipper should pay no more than 70% of the after-repair value minus the rehab cost: max offer = (ARV × 70%) − rehab. On a $400,000 ARV with $50,000 of rehab, that ceiling is $230,000. It is a screening shortcut, not a guarantee — it bakes in a rough allowance for holding, financing, selling costs, and profit.

Calculation Output

Max Allowable Offer (70% Rule)

$230,000

Loan Amount

$224,000

Financing Costs (interest + points)

$15,680

Total Project Cost (all-in)

$322,080

Expected Profit

$77,920

Cash You Must Bring

$98,080

Return on Cash Invested

79.4%

Result Chart

Max Allowable Offer (70% Rule)

$230,000

Loan Amount

$224,000

Financing Costs (interest + points)

$15,680

Total Project Cost (all-in)

$322,080

Expected Profit

$77,920

Key Facts

Max Allowable Offer (70% Rule)	$230,000
Loan Amount	$224,000
Financing Costs (interest + points)	$15,680
Total Project Cost (all-in)	$322,080
Expected Profit	$77,920
Cash You Must Bring	$98,080

How This Estimate Works

At $230,000, the purchase sits $0 inside the 70% rule's max allowable offer of $230,000 (70% of ARV minus rehab), which is the traditional quick screen for whether a flip has enough margin to bother analyzing further.
All-in, this project costs about $322,080: the purchase and rehab, $2,400 of holding costs over 6 months, $15,680 of financing (interest-only payments plus points on the $224,000 loan), and $24,000 to sell at the $400,000 ARV.
That leaves an expected profit of about $77,920 on $98,080 of your own cash in the deal — a 79.4% return over the 6-month hold before taxes. Rehab overruns and extra holding months come straight out of that number, which is why flippers pad the rehab budget.
Financing here is modeled as a typical hard-money or bridge loan: a percentage of purchase plus rehab, interest-only during the hold, with origination points up front. If you are buying with cash, set the loan fields to zero and the return becomes profit over total cost.

FAQ

What is the 70% rule in house flipping?

The 70% rule says a flipper should pay no more than 70% of the after-repair value minus the rehab cost: max offer = (ARV × 70%) − rehab. On a $400,000 ARV with $50,000 of rehab, that ceiling is $230,000. It is a screening shortcut, not a guarantee — it bakes in a rough allowance for holding, financing, selling costs, and profit.

What profit margin should a fix and flip target?

Many flippers look for profit of at least 10–15% of the ARV after every cost is counted, because rehab overruns and slow sales are common. This scenario produces $77,920 on a $400,000 resale — about 19.5% of ARV — before income taxes.

What costs do flippers most often forget?

Holding costs (taxes, insurance, utilities, lawn and snow) for every month the project runs long, financing points and interest, selling costs of roughly 6% or more with an agent, permits, and the contingency that nearly every rehab needs. This calculator includes each of them in the all-in project cost.

How does hard money change the math?

Hard-money and bridge loans trade a higher rate and points for speed and leverage. Here the $224,000 loan costs about $15,680 across the hold — that buys back most of your cash, which is why return on cash (79.4% here) can look strong while the margin on the whole project stays thin.