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Real estate & rental

Real Estate Fix and Flip Calculator

Profit on a flip after every cost, including the holding costs most projections leave out.

Your numbers

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Loan interest, taxes, insurance, utilities.
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Result

Net profit $25,750
Total invested $332,300
Return on cost 7.75%
Holding costs $11,100
Maximum offer at the 70% rule $198,200
Net profit is $25,750, a 7.75% return on $332,300 invested. Holding costs alone took $11,100.

Holding costs and budget overruns are what turn projected flips into losses, and both scale with time. A project running three months late pays three extra months of interest, taxes and insurance while the rehab budget has usually already been exceeded. The 70% rule is a screening heuristic, not a valuation method.

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Questions

About this calculator

What is the 70% rule?

Offer no more than 70% of after repair value minus the rehab cost. It is a quick filter that builds in profit and a margin for error, not a precise calculation.

How much overrun should I allow?

Ten to twenty percent on a familiar property type, considerably more on an older building where opening walls reveals surprises. Experienced flippers budget for it rather than hoping.

Why does time matter so much?

Because holding costs accrue whether or not work is happening. A six month project stretching to nine adds three months of interest, taxes, insurance and utilities to a profit that was already thin.

The formula

profit = ARV - purchase - rehab with overrun - buying costs - holding costs - selling costs

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Estimating is the easy part

The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.