Fix & Flip ROI Calculator
70% rule, ARV math, holding costs, capital gains tax. Most first-time flippers underestimate renovation by 30% and timeline by 50%. We show what 'realistic' actually means.
How the math works
The 70% rule: max purchase price = ARV × 0.70 − repairs. ARV is the after-repair value (what comparable renovated properties sell for). The 30% gap covers acquisition costs, holding costs, selling costs, and your profit margin.
Five categories of cost the calculator tracks:
- Acquisition: purchase price + closing costs (~2-3%) + inspection + due diligence.
- Renovation: material + labor + permits + 20% contingency (rookies skip this; experienced flippers don't).
- Holding: mortgage interest + property tax + insurance + utilities × actual timeline (typically 4-9 months for first-timers, not the 3 months in the optimistic plan).
- Selling: agent commission (~6%) + closing costs + staging.
- Tax: short-term capital gains at ordinary income rates (held under 1 year).
The two errors that kill first-time flippers: renovation underestimated by 30%+ (surprise plumbing, electrical, foundation), and timeline doubled (permits delay, contractor delay, market shifts). The calculator runs both optimistic and realistic scenarios.
Math runs locally. Inputs never leave your browser.
Real-world scenarios
- First flip: the gap between projected and actual profit — renovation overruns + holding cost + tax — three categories where the spreadsheet quietly overpromises.