🏭 Real Estate Investing
Fix & Flip Loan Calculator
Estimate your loan costs, rehab budget, profit, ROI, and the 70% rule for any house flip — instantly.
🏠 Property & Deal
$
$
Estimated sale price after all renovations
$
% of ARV
Typical: 6–10% (agent fees + closing costs)
💰 Loan Details
% of purchase
= $40,000
% p.a.
Typical hard money: 9%–14%
points
1 point = 1% of loan amount. Typical: 1–3 points
Additional Holding Costs
$
$
$
📈 Deal Analysis
Net Profit
—
After all costs
ROI
—
Return on cash invested
Annualized ROI
—
Adjusted for hold time
Loan Amount
—
Hard money borrowed
Total Cash In
—
Down + points + costs
LTV Ratio
—
Loan-to-value
💰 Cost Breakdown
🏠 Purchase price—
🔨 Rehab budget—
💰 Loan interest cost—
📌 Origination points—
📍 Property tax (hold)—
🛡 Insurance (hold)—
⚡ Utilities & misc—
📋 Selling costs—
Total All-In Cost—
🎉 Profit Summary
📈 Sale price (ARV)—
🔴 Total all-in cost—
Net Profit—
70% Rule Check
ARV × 70%—
Minus rehab costs—
Max offer (70% rule)—
Your purchase price—
70% Rule status—
Enter deal details and click Calculate
What is a Fix and Flip Loan?
A fix and flip loan is a short-term hard money or bridge loan used by real estate investors to purchase a distressed property, renovate it, and sell it quickly for a profit. These loans are typically 6–18 months, carry higher interest rates (9%–14%), and focus on the property's After Repair Value (ARV) rather than the borrower's credit score.
Key Fix & Flip Metrics
Net Profit = ARV − Purchase Price − Rehab − Loan Costs − Holding Costs − Selling Costs
ROI = Net Profit ÷ Total Cash Invested × 100
Annualized = ROI × (12 ÷ Hold Months)
70% Rule = (ARV × 0.70) − Rehab Costs = Maximum Purchase Price
ROI = Net Profit ÷ Total Cash Invested × 100
Annualized = ROI × (12 ÷ Hold Months)
70% Rule = (ARV × 0.70) − Rehab Costs = Maximum Purchase Price
The 70% Rule Explained
The 70% rule is the most widely used quick filter in house flipping. It states that you should pay no more than 70% of the ARV minus repair costs. This leaves roughly 30% of ARV to cover financing costs, holding costs, selling costs, and profit margin.
Example: ARV = $300,000, Rehab = $40,000 → Max offer = ($300,000 × 70%) − $40,000 = $170,000
Fix and Flip Loan Types
Hard Money Loans
- Asset-based lending — loan is based on ARV, not borrower income
- Fast funding — typically 5–14 days to close
- Higher rates: 9%–14% interest + 1–3 origination points
- Term: 6–18 months
- LTV: typically up to 70%–80% of purchase price or 65%–75% of ARV
Bridge Loans
- Similar to hard money but often from conventional lenders
- Slightly lower rates but more documentation required
- Good for investors with strong credit and track record
Typical Fix and Flip Costs
| Cost Category | Typical Range | Notes |
|---|---|---|
| Hard Money Interest | 9% – 14% p.a. | Monthly, on loan balance |
| Origination Points | 1 – 3 points | 1 point = 1% of loan |
| Rehab Costs | $15–$60/sq ft | Varies widely by scope |
| Selling Agent Fee | 5% – 6% of sale price | Both sides of transaction |
| Closing Costs (sale) | 1% – 3% of sale price | Title, transfer tax, etc. |
| Property Tax & Insurance | Varies by market | Per month held |
Frequently Asked Questions
A fix and flip loan is a short-term hard money or bridge loan used by real estate investors to purchase a distressed property, renovate it, and sell it for a profit. These loans typically run 6–18 months and are based on the property's After Repair Value rather than the borrower's income.
ARV (After Repair Value) is the estimated market value of the property after all renovations are complete. It is the most important number in a flip deal — lenders use it to determine how much they'll lend (typically 65–75% of ARV), and it determines your potential sale price and profit.
The 70% rule states that you should pay no more than 70% of the ARV minus repair costs. Formula: Maximum Offer = (ARV × 70%) − Repair Costs. This ensures enough margin for financing, holding costs, selling costs, and profit.
Hard money lenders focus primarily on the property's ARV and your exit strategy rather than your credit score. Many lenders fund deals with credit scores as low as 600–620. However, a higher score and proven track record can get you better rates.
Most hard money lenders require 20%–30% down payment on the purchase price. Some lenders offer 100% financing for the rehab costs on top of the purchase loan, making the total capital needed just the down payment plus closing costs.
A good ROI for a house flip is generally 15%–20%+ on cash invested. Annualized, most successful flippers target 40%–100%+ given the short 3–12 month hold periods. Always factor in all costs including loan interest, points, rehab, and selling costs.