Fix & Flip Profit Calculator: Estimate Your Returns Before You Buy
- By Jim Blackburn
- on
- Tags: Calculators, New Construction, Spec Homes
| Item | Amount |
|---|---|
| Purchase Price | $400,000 |
| Renovation Costs | $60,000 |
| Sales Price / ARV | $630,000 |
| Months Held | 6 |
| Interest Rate | 7.99% |
Loan & Leverage Breakdown
| Item | Amount |
|---|---|
| Max Loan Allowed (75% ARV) | $472,500 |
| Loan Amount Desired | $360,000 |
| Down Payment (10%) | $40,000 |
| Total Cash Needed w/o Credit | $64,000 |
| Cash Needed w/ Seller Credit | $40,000 |
Note: You must have at least 5% of the total cost in post-close reserves. These reserves can come from you or key partners in your LLC.
Cost Breakdown
| Item | Amount |
|---|---|
| Property Costs | $466,000 |
| (Purchase + Reno + 10% buffer) | |
| Holding Costs | $17,982 |
| (Taxes, Insurance, Interest) | |
| Exit Costs (5% of Sale Price) | $31,500 |
| Total Project Costs | $515,482 |
Profit & ROI Summary
| Item | Amount |
|---|---|
| Sale Price (ARV) | $630,000 |
| Total Costs | $515,482 |
| Profit Before Tax | $114,518 |
| Cash-on-Cash ROI | 286.3% |
Cash-on-cash ROI measures the return on the actual cash you put into the deal—not the property’s value. It’s a powerful tool to compare one project’s profitability against another.
Planning for the Next Flip?
If your plan is to build long-term wealth, fix-and-flip can be a powerful launchpad into rental investing. Fannie Mae and Freddie Mac guidelines allow you to use projected rental income from a departing residence to help you qualify for your next purchase—creating a smart bridge into your next deal.
Final Tip: Exit Strategy Matters
If you plan to 1031 Exchange the profit, you may defer capital gains. If not, prepare for short-term capital gains tax (ordinary income). Consult a CPA for tax optimization strategies.
Ready to Flip?
Knowing your numbers is step one. Let’s build the perfect financing plan to support your flip, manage cash flow, and scale your real estate investing journey.
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Schedule a CallImportant Disclaimer
This calculator is for illustrative purposes only and does not constitute financial, legal, or investment advice. Results are based on general assumptions and may not reflect actual performance or eligibility. This is not a loan estimate or approval. Please consult with a licensed mortgage advisor before making financial decisions.
