Real Estate Fix & Flip Profit Calculator
Accurately estimate your ARV, repair costs, and net profit to ensure every deal is a winner.
Project Inputs
Acquisition
Holding
Sale
Financing
Project Summary
Acquisition
- Purchase Price
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- Rehab / Renovation
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- Buyer Closing Costs
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- Points + Finance Fees + Misc
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- Acquisition Total
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Holding
- Taxes (prorated)
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- HOA (prorated)
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- Insurance + Utilities + Maintenance + Other
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- Interest Carry
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- Holding Total
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Sale
- Sale Price
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- Agent Commissions
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- Seller Closing Costs
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- Concessions / Staging
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- Sale Costs Total
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Financial Summary
- Total Project Costs
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- Cash Needed
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- Loan Amount
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- Break-even Sale Price
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- Gross Profit
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How We Calculate Your Fix & Flip Profit
The Pathwaize Fix & Flip Model uses a Full-Stack Cost Waterfall to project the net profitability of a residential renovation and resale project. Rather than estimating profit as a simple spread between purchase and sale price, this model accounts for every dollar deployed across three distinct cost phases:
Acquisition → Holding → Exit
The Core Formulas
1. Acquisition Total
The complete capital outlay required to take ownership of the property.
Acquisition Total = Purchase Price + Rehab + Buyer Closing Costs + Points + Finance Fees + Misc
Note: Buyer Closing Costs = Purchase Price × Buyer Closing %
Note: Points Fee = Loan Amount × Points %
2. Holding Total
All costs incurred while the property is owned but not yet sold. Annual figures (taxes, HOA) are prorated to monthly.
Holding Total = (Monthly Ops × Hold Months) + Interest Carry
Monthly Ops: (Annual Taxes / 12) + (Annual HOA / 12) + Insurance + Utilities + Maintenance + Other.
Interest Carry: Loan Amount × (Annual Rate / 12) × Hold Months.
Verification Note: This model uses simple interest, reflecting the interest-only structure standard in hard money and bridge financing.
All costs deducted from the gross sale proceeds at closing.
Sale Costs = (Sale Price × Agent %) + (Sale Price × Seller Closing %) + Concessions
4. Gross Profit
Gross Profit = Sale Price - Total Project Costs
(Total Project Costs = Acquisition Total + Holding Total + Sale Costs)
5. Cash Needed (Capital at Risk)
The total out-of-pocket capital required to execute the project—the denominator for all ROI calculations.
Cash Needed = Down Payment + Buyer Closing + Points + Finance Fees + Misc + Rehab + Interest Carry + (Monthly Ops × Hold Months)
6. ROI & Annualized Performance
ROI on Cash: (Gross Profit / Cash Needed) × 100
Annualized ROI: (ROI / Hold Months) × 12
Profit Margin: (Gross Profit / Sale Price) × 100
Variables & Definitions
Holding Period: The number of months between purchase and sale. This is the single variable with the largest compounding effect on profitability; each additional month adds a full cycle of taxes, insurance, and interest carry.
Cash Needed: Unlike "Total Project Cost," this represents the true equity and out-of-pocket expenses the investor must fund directly. This is the ultimate metric for measuring Return on Equity (ROE).
Break-even Sale Price: Equal to Total Project Costs. Any sale price above this figure produces a profit; any price below produces a loss.
Annualized ROI: Normalizes profit to a 12-month equivalent. A 6-month project with 15% ROI annualizes to 30%, allowing for direct comparison against long-term rentals or stock market performance.
Frequently Asked Questions
How does Pathwaize help flippers manage their project timelines?
Pathwaize helps protect your flip profit by using automated task management to keep your renovation on schedule. Since every extra day of "holding" costs you money, you can use Pathwaize to set reminders for contractor milestones and permit deadlines, ensuring your "speed to market" is as fast as possible to maximize your ROI.
Can Pathwaize help me estimate the After Repair Value (ARV)?
Pathwaize streamlines ARV estimation by pulling real-time comparable sales (comps) directly into your lead profile. Instead of jumping between multiple websites, you can view recent sales of similar homes in the area to determine a realistic exit price, which is the most critical number in any fix and flip calculation.
How do you calculate profit on a house flip?
To calculate net flip profit, subtract the purchase price, total rehab costs, holding costs, and selling costs from the After Repair Value (ARV). While many beginners only look at the "buy low, sell high" spread, professional flippers use a calculator to account for the "hidden" drains on profit, such as loan points, property taxes, and Realtor commissions.
What are "Holding Costs" in a fix and flip?
Holding costs, also known as "carrying costs," are the ongoing expenses you pay while you own the property. These include monthly mortgage interest, property insurance, property taxes, and utilities (water, electricity, gas). Because these costs accrue every day the house isn't sold, our calculator helps you estimate how your profit shrinks if the renovation or listing period takes longer than expected.
What is a "good" ROI for a house flipping project?
Most experienced flippers aim for a minimum of a 15% to 20% of the property's After Repair Value (ARV) or a specific profit floor, such as $40,000 per deal. Since flipping involves significant risk and active management, the ROI must be high enough to justify the time spent and the potential for market fluctuations during the renovation.
What is the "70% Rule" in house flipping?
The 70% rule is a quick-math strategy where you offer no more than 70% of the ARV minus the estimated repair costs. This 30% "buffer" is designed to cover your holding costs, selling costs, and your desired profit. Our calculator allows you to refine this rule by entering exact line-item expenses for a more surgical and competitive offer.
*Disclaimer: Use of this calculator signifies your agreement to our Terms of Use and the terms posted below.
The calculators and tools available on this website are intended solely for informational and educational use. Alone, they do not offer investment guidance. It is advised that you consult with a real estate expert prior to undertaking any investment activities. The outcomes shown may not accurately represent the return on your personal investments. Pathwaize bears no liability for any decisions or actions made based on the reliance on the information these tools provide. Moreover, Pathwaize does not accept responsibility for any errors or omissions, whether they be human or technical in nature. Pathwaize sources property details from a variety of external parties, and cannot guarantee the precision, completeness, or appropriateness of these property details. It is your responsibility to ensure the accuracy, completeness, and relevance of the property details for your needs is your responsibility.
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