Fix and Flip Calculator
On a flip the purchase price is a conclusion, not an assumption. Begin at the resale figure.
What This Calculator Does
Begins with after-repair value and deducts the rehab budget, the financing and holding costs, and the cost of selling, arriving at projected profit, margin, and the highest purchase price those numbers will support.
Who Is This For
Investors underwriting a renovation, contractors moving from building for clients to buying for themselves, and anyone assessing a distressed listing who wants a disciplined figure rather than an optimistic one.
How It Works
Enter a realistic after-repair value drawn from comparable sales, the rehab budget, the expected hold, and your financing, carrying, and selling costs. Out come projected profit, margin, and the ceiling price that still hits your target.
Frequently Asked Questions
How useful is the 70% rule?
As a screen, very. Pay no more than 70% of after-repair value less the rehab budget, and you have a quick way to decide which listings deserve a second look. It is not underwriting. Once a deal is live, swap it for your actual costs — the rule quietly assumes a margin and a cost load that may not be yours.
Which costs get overlooked?
Holding costs across the whole project — loan interest, taxes, insurance, utilities, association dues — and then the cost of selling: commission, documentary stamps, title. Between them they routinely consume the profit that a purchase-plus-rehab estimate appeared to show.
Do flips work in Miami?
In places. Miami behaves more like a condo and appreciation market than a value-add renovation market, and association rules and approval processes constrain what can be done inside a unit. Flips here cluster in particular single-family pockets where the housing stock is dated and the land carries the value.
How is after-repair value set?
From closed sales of comparable, similarly renovated homes in the same neighbourhood — not from active listings, and not from where you hope the market goes. If the after-repair value requires the market to rise before the deal works, you are betting on timing rather than renovating.
How are flips financed?
Generally with short-term investor debt priced well above a conventional mortgage, often carrying points at origination and interest-only payments through the hold. With benchmark 30-year rates near 6.6-6.7% in mid-2026, flip financing sits meaningfully higher, and every extra week on site has a price.
What margin is enough?
Enough to absorb a rehab overrun and a slower sale, because both are ordinary. Model a longer hold and a lower resale alongside your base case. A deal that only works in the optimistic column is not a deal.