Almost every flip calculator online does the same arithmetic: take the after-repair value, multiply by 0.70, subtract the rehab, and call what is left your maximum offer. It is a useful first screen and a terrible last one, because it treats financing as free and time as weightless. Neither is true. On a typical six-month project, the money and the calendar together can take more than the rehab does.
This one prices all of it. Put in a real deal and you get the net, the return on the cash you actually bring, the resale price at which you break even, and the highest offer that still clears the return you said you would accept. Then it does the thing no other calculator does: it shows you the three ordinary ways the deal stops working.
What this counts that the 70% rule does not
Origination points. One to three points, paid at closing, before a contractor sets foot on site. On a $228,000 loan, two points is $4,560 gone on day one.
Interest across your real timeline. Not a rate, a dollar figure, run on the balance you have actually drawn, for the number of months you will actually own it.
Carry. Taxes, insurance and utilities keep running every day the property sits, whether or not anyone is working in it.
Both closings. Buying costs money and selling costs more. The sale is usually the single largest line after the purchase and the rehab.
A contingency you can see. Priced as a real cost, not a footnote. A rehab that comes in on budget hands the money back.
The delay. Three extra months is the most common thing that happens to a flip, and on a thin deal it is the difference between a profit and a loss.
How to use it
Start with the three numbers you are most confident about: what the property will sell for once it is finished, what you would pay for it, and what the work costs. Add your timeline honestly, then add 30 to 45 days, because that is what happens. Everything else is pre-filled with ordinary 2026 terms you can change to match your own lender.
Then read the bottom two figures rather than the top one. Break-even resale tells you how far the market can move against you before the deal is underwater. The highest offer that clears your bar tells you what to actually write on the contract.
The terms, in plain English
ARV (after-repair value). What the property should sell for once the work is finished. Hard money lenders size your loan off this number, usually capping at 70% to 75% of it, which is why an optimistic ARV quietly shrinks your loan and grows the cash you have to bring.
The ARV cap. The ceiling your lender will lend against, expressed as a percentage of resale value. This, not your down payment, is usually the binding constraint on a flip. Run it before anything else.
Origination points. An upfront fee charged as a percentage of the loan. One point equals 1% of the loan amount, paid at closing, whether the flip works or not.
Draw schedule. The process by which rehab money is released. You typically pay for the work first, request an inspection, then get reimbursed. It means you need cash on hand even on a fully funded rehab.
Holding costs, or carry. Taxes, insurance, utilities and interest while you own the property. They are charged by the month, so every week of delay has a price.
Gross profit vs. net profit. Gross profit is resale price minus purchase price and nothing else. Net profit subtracts rehab, financing, holding and selling costs. Industry headlines almost always report gross, which is why the reported margin and your bank account disagree.
Extension fee. What a lender charges to push your maturity date when the project runs long. Often one additional point, charged exactly when the deal can least afford it.
A worked example
A cosmetic flip. Purchase $260,000, resale $326,000, rehab $20,000, six months. That is a $66,000 gross profit and a 25.4% gross margin, which is almost exactly the national figure for early 2026.
Item | Cost |
|---|---|
Purchase and rehab | $280,000 |
Points, interest and carry | $19,620 |
Both closings | $23,060 |
Contingency at 10% of rehab | $2,000 |
All-in | $324,680 |
Resale of $326,000 leaves $1,321. That is a 1.7% return on the $76,920 of cash the investor brought, on a deal the headline called 25.4%. Three months of delay turns it into a loss of $6,207.
Questions people ask
Is the 70% rule still accurate?
It is a screen, not an answer. The rule sets a ceiling on what to pay, but it says nothing about how long you will hold the property or what the money costs. Two deals with the same 70% number can differ by tens of thousands of dollars once financing and time are priced.
How much does hard money actually cost?
In 2026, roughly 9% to 12% for residential fix-and-flip borrowers with a track record, higher for first-timers, usually interest-only and charged on what you have drawn. Add one to three origination points at closing, and often another point if you need an extension.
What counts as holding costs on a flip?
Property taxes, insurance, utilities and loan interest for every month you own it. On a typical single-family project the non-interest portion alone runs several hundred dollars a month, and interest is usually larger than all of it combined.
What is a good return on a flip?
There is no universal number, which is why the tool asks for yours. What matters more is whether the return survives an ordinary delay. A 25% return that turns negative when the project runs three months long is not a 25% return, it is a bet on the timeline.
Why does my profit vanish when the project runs long?
Because interest and carry keep accruing while the resale price stays fixed. Every month of delay costs you real money and earns you none, and an extension fee often lands on top. Delay is the most common way a workable flip becomes a loss.
Should I include a contingency?
Yes, and it should be a line item rather than a hope. If the rehab comes in on budget you get the money back. If it does not, you priced it. Set it to zero in the tool and you will see the version of your deal that every other calculator shows you.
Is my data saved anywhere?
No. Deals you name and save are stored in your own browser and never sent to us. Clearing your browser data removes them, and they do not follow you to another device.
Where the numbers come from
The defaults reflect ordinary 2026 residential fix-and-flip terms. Market figures cited on this page trace to named public sources, including ATTOM's quarterly home flipping report and Freddie Mac's weekly mortgage rate survey. We do not take payment for coverage and we do not publish price predictions.
Educational only. Not financial, legal, or tax advice. Loan terms, rehab costs, and market conditions vary by lender, property, and location. Verify every assumption with qualified professionals before investing.
