| Return on your cash | – |
|---|---|
| Return on your cash, per year (simple) | – |
| Profit as a share of the sale price | – |
For real estate investors
Fix and flip calculator
Test a flip with your own numbers: the purchase, the rehab budget, the after-repair value, the months you hold it, the costs to sell and the costs of your loan. See the projected profit and the return on your cash. It runs in your browser and nothing you type is sent to us.
Prefer to talk? Call 732-686-9999
- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
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Want the loan itself? See fix and flip loans
Fidelity Residential · NMLS #103098 · Equal Housing Lender
Calculator
Fix and flip profit, ARV and hard money loan costs
Enter the deal, the holding and selling costs, and the loan figures from your own term sheet. No after-repair value yet? Work one out from comparable sales at the bottom of the form. Every figure is worked out from what you enter.
Everything here runs in your browser. Nothing you type is sent to us, saved, or added to the page address. See our Privacy Policy.
The deal
Title, recording and other buyer costs, not counting the lender’s points and fees below.
Your line-by-line budget, with a cushion for surprises.
What the property should sell for once the work is done. You can work it out from comparable sales below.
Holding and selling
From purchase to sale, in whole months, counting the time to sell.
Taxes, insurance, utilities and upkeep while you own it, not counting loan interest.
Your own estimate of agent commissions, transfer taxes and seller closing costs.
Your loan figures (optional)
The whole loan on your term sheet, including any renovation money. Leave blank if you would pay cash.
Type the rate from your own term sheet. This page does not suggest one.
From your own term sheet. Leave blank if none.
Underwriting, processing, draw inspections: from your own term sheet.
ARV calculator: comparable sales (optional)
Recent sales of similar renovated homes nearby: the sale price and the living area of each.
| Average price per square foot | – |
|---|---|
| Estimated after-repair value | – |
Enter one to three recent sales of similar renovated homes nearby.
Your estimate
This is an estimate, not an offer or a loan decision. It is worked out from the numbers you enter.
| Sale at the after-repair value | – |
|---|---|
| Purchase price | – |
| Closing costs to buy | – |
| Rehab budget | – |
| Holding costs | – |
| Loan interest | – |
| Points | – |
| Other lender fees | – |
| Selling costs | – |
| Total cost | – |
| Monthly interest (interest-only) | – |
|---|---|
| Loan amount | – |
| Cash you put in | – |
This calculator gives estimates for information, worked out from the numbers you enter. It is not a loan application, a rate quote, a term sheet, an offer of credit, a loan decision or a commitment to lend. The loan amount, rate, points and fees are the ones you enter; we do not state or suggest them on this page. Income taxes and any change in the market before you sell are not counted. Fix and flip loans are business-purpose loans for investment property, never for a home you live in. For the program, see fix and flip loans.
Guide
How the fix and flip calculator works
After-repair value (ARV): the value the property is expected to have once the renovation is finished. From comparable sales, the calculator takes each sale’s price divided by its square feet, averages them, and multiplies by your property’s square feet.
Loan costs: interest-only interest each month (the loan amount times the yearly rate, divided by twelve) for every month you hold the property, plus points (a share of the loan) and the other lender fees.
Total cost: the purchase price, closing costs to buy, the rehab budget, the holding costs for the months you hold it, the loan costs, and the selling costs as a share of the sale price.
Projected profit: the after-repair value minus the total cost.
Return on your cash: the projected profit divided by the cash you put in, which is every cost before the sale minus the loan. The per-year figure spreads that return over twelve months in a simple way, so flips of different lengths can be compared.
A worked example, with example figures. Jordan Example, a fictional investor, looks at a dated house to renovate and sell. Every figure here is an example for you to replace with your own; none is our rate, points, fee or limit.
The after-repair value. Three renovated homes nearby sold for $315,000 (1,500 square feet), $330,000 (1,600) and $322,000 (1,550): about $208 a square foot on average. Jordan’s house is planned at 1,540 square feet after the work, so the estimate is about $320,000.
The costs. The price is $200,000, closing costs to buy $4,000 and the rehab budget $50,000. Jordan expects to hold the house six months, at $600 a month for taxes, insurance and utilities: $3,600. Selling costs are estimated at 7% of the sale price, $22,400.
The loan costs. From the figures on Jordan’s own term sheet, the calculator works out interest of $1,800 a month, $10,800 over six months, plus $4,000 in points and $500 in other fees: $15,300.
The result. The total cost is $295,300, so the projected profit on a $320,000 sale is $24,700, about 7.7% of the sale price. Jordan’s own cash in the deal before the sale is $72,900, so the return on that cash is about 33.9% over six months.
Next. Jordan tests a longer hold and a lower sale price before asking for a term sheet. Get a quote
Questions
Fix and flip calculator questions
How do you calculate profit on a fix and flip?
Start with the after-repair value, the price you expect to sell for, and take off every cost: the purchase price, closing costs to buy, the rehab budget, the holding costs for each month you own the property, the loan interest, points and fees, and the costs to sell. What is left is the projected profit.
What is after-repair value, and how do I estimate it?
The value the property is expected to have once the renovation is finished, often shortened to ARV. A common way to estimate it is from recent sales of similar renovated homes nearby: average their price per square foot and multiply by your property’s square feet, as the ARV calculator on this page does. The lender relies on an appraisal, so an after-repair value supported by sales of similar renovated homes nearby makes the deal easier to size.
How is the interest on a hard money loan worked out?
Short-term investor loans usually have interest-only monthly payments: the loan amount times the yearly rate, divided by twelve. Points are a one-time charge, a share of the loan, usually paid at closing. The hard money loan calculator section above adds the interest for each month you hold the property, the points and the other fees you enter.
Why does the calculator count interest on the whole loan?
It is the cautious case. Renovation money is released in draws as the work is done and inspected. On our fix and flip loans, interest on the renovation money is charged as each draw is paid out, not from closing, so the interest on your term sheet is usually lower than the figure here. Other lenders may charge interest on the whole loan from closing.
Is a fix and flip loan a hard money loan?
Short-term investor loans to buy and renovate are often called hard money or private money loans, and ours do the same job: they are sized on the deal rather than on your tax returns. The difference is who you deal with: a licensed lender you can look up on NMLS Consumer Access, terms in writing on a term sheet before you commit, and renovation money released against a third-party inspection of the finished work. See fix and flip loans.
Which costs do flippers most often leave out?
Closing costs on both the purchase and the sale, the months the property sits on the market after the work is done, holding costs such as taxes, insurance and utilities, and a cushion in the rehab budget for surprises. Try a longer hold and a lower sale price to see how much room the deal has.
Does the calculator work for a heavy rehab?
Yes, the arithmetic is the same: enter the full rehab budget and a longer hold. Heavy rehab projects (foundation work, structural demolition, additions) are priced and sized differently, so ask a loan officer about the loan for your project.
Is anything I type saved or sent?
No. The calculator runs in your browser. Nothing you type is sent to us, saved, or added to the page address, and closing the page clears it. To talk a deal through, call 732-686-9999 or start a quote.
Have a flip in mind?
Get a quote, apply online, or talk the deal through with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, experience, the property, the budget and underwriting review and are subject to change without notice. Business purpose investor loans are for investment property.
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