Free & Easy To Use

HOUSE FLIPPING CALCULATOR

Analyze House Flip Deals & Estimate Rehab Costs to Maximize Your Profit

Are wondering how much it cost to flip a house and how much money you need to invest to be a successful house flipper? Are you trying to assess how much profit you can make with your next rehab?

Preparation is key in the house flipping business. Before pulling the trigger on a property, you need to identify all costs associated with your rehab, not just the purchase price and rehab costs. You also need to correctly assess the resale value (or After Repair Value – ARV) in order to accurately estimate your profit. Having a clear picture of all of your project costs will help you make the right decision.

Our online House Flipping Calculator is all about that: running numbers for you so you can easily identify great investments and avoid money pits.

And if you’re looking for additional features, check out our House Flipping Spreadsheet. It is an all-in-one solution for analyzing house flipping deals, estimating rehab costs, tracking expenses, managing deadlines and much more.

Download our Free House Flipping Spreadsheet

How to use the Calculator

To use our calculator, simply enter your assumptions in the blue cells and the house flipping calculator will run the numbers for you.

How to fill out the House Flipping Calculator

This online Fix and Flip calculator is composed of 4 sections:

1. Acquisition Assumptions

This is where you enter all the assumptions regarding the acquisition of your property. It includes 4 categories:

Purchase Assumptions

Indicate your property purchase price and the estimated after-repair value (or ARV). The After-Repair Value is the estimated value of a property after completed renovations (i.e. once your project is done). You can also enter the property’s size and the expected purchase date.

  • The Purchase Date will later be used to calculate IRR for you and your investors (if applicable).

Acquisition Costs

Enter your acquisition costs, excluding any refurbishment/repair costs (to be entered in the next section). Acquisition costs usually include costs such as broker fee, title search, insurance, appraisal fee, inspection, etc.

  • You can customize the list of costs by simply renaming them as needed.

Holding Costs

Holding costs refer to the cost of holding a property before selling it. The holding period should broadly match the total length of your rehab project so if you think it will take you 6 months to rehab your property, enter 6 months as the holding period.

During this holding period, you are still responsible to pay for the costs associated with the property (such as taxes, insurance, utilities, etc.). Enter the expected monthly cost of each item in this category.

Sale Assumptions

Similar to the Acquisition costs section, enter here all the costs associated with selling the property once it’s been fully renovated. Note that you can rename items as needed.

2. Repair Assumptions

In this section, you can select one of the 3 repair estimate methods (4 are available in our House Flipping Spreadsheet)

  • Quick Estimate: This method allows you to enter an estimate for each your rehab’s cost category without detailing all the associated expenses. Data used for this method must be entered in the “Cost by Category” area, in the blue cells available next to each of the 24 cost categories.
  • Percentage of ARV: This quick method estimates your project’s total repair cost using a % of your Property’s expected After-Repair Value. It is ideal for quick and dirty estimates when reviewing opportunities. This method is however less precise than the other method described previously and is best used when you already have a general sense of the expected total cost of your project. This method also includes an input for a headroom / contingency amount in addition to the repair estimate itself.
  • Lump Sum: As an alternative to the ARV method, you can use this option to assume a fixe $ amount rather than a % of ARV. As with the previous method, this option works best if you are already confident about your repair estimate.
3. Financing Assumptions

Enter here how you will finance your rehab project. Under the Financing Plan sub-section, you can select whether the purchase price, repair costs, acquisition costs and holding costs are financed with your own cash, a first loan, a second loan or with equity from other investors. For more flexibility, you can also enter a custom amount (“Other Amount”) if needed.

Based on the size of the first & second loans as well as the contributions from external investors, the spreadsheet will automatically calculate the remaining amount of cash required to complete the project (displayed in the “Cash Needed” column of this sub-section, as well as in the Uses & Sources table).

The next two sub-sections (Sub-Sections 2 & 3) include all the details of your loans. Enter the required information (% down payment, type of loan, maturity, interest rate, fees, etc.). Most of the time, the number of payments should reflect your holding period.

The Equity Investment Allocation table allows you to list all investors participating in your rehab project and define their respective contribution as well as the associated profit share. By default, the house flipping calculator will consider than any external equity is provided by Investor #1 unless you add additional investors in that table. Any profit not allocated to investors is automatically assigned to the rehabber.

4. Summary Results

This section includes a summary of your project as well as the result of your analysis:

  • Summary Figures: a recap of the project’s costs by category and your capital requirements
  • Project Profit: Project’s expected profit and key financial indicators such as expected ROI, annualized ROI and the result of the 70% rule.
  • Individual Return Analysis: if you project includes equity from external investors, this table will summarize the allocation of profit among you and the investors, based on the profit share assumptions entered in the Financing section.

What financial metrics are available?

This free house flipping calculator will calculate 5 financial metrics:

Project Profit

Calculated as the difference between your After-Repair Value and all the costs associated with your project (including purchase price, acquisition costs, repairs, holding costs, financing costs and selling costs)

Project ROI

Calculated as your Project Profit divided by the required investment (i.e. cash needed + partner equity). This represents the Return On Investment of the whole project. To see the ROI for each individual investor (including the rehabber), look at the “Individual Return Analysis” table.

Annualized ROI

This calculates your project’s return on investment on an annualized basis.

70% Rule

The rule states that an investor should not pay more than 70% of the after-repair value (ARV) of a property, minus the cost of repairs needed.

Following the 70% rule helps investors maintain a healthy profit margin and mitigate risks associated with unexpected expenses or market fluctuations. However, it’s essential to remember that this is a guideline and not a strict rule. In some markets or situations, investors may adjust this percentage based on factors such as location, property condition, or their own risk tolerance.

Internal Rate of Return (IRR)

The IRR estimates the value a property generates during the time frame you own it. Effectively, the IRR is the % of interest you earn on each dollar invested in a property over the entire holding period. This ratio is a much more comprehensive ratio than Cap Rate and Cash on Cash return as it takes into account all aspects of the transaction over time (cash flow generation, leverage, property appreciation, time value of money, etc.). More about Internal Rate of Return

Frequently Asked Questions

Absolutely, all of our calculators are completely free to use.

No, this calculator has been specifically built to analyze house flipping and rehab projects.

If you want to analyze and manage long term rental properties, please check out our free Rental Property Analysis Spreadsheet

This online calculator cannot be downloaded as a spreadsheet. If you wish to get it in a spreadsheet format, check out our free House Flipping Spreadsheet

Get our Free Excel House Flipping & Rehab Spreadsheet

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