Ridge Street Capital built this fix-and-flip calculator to give investors a complete picture of any deal before committing to a purchase price. Enter the acquisition cost, rehab budget, loan terms, and sale costs, and the calculator returns profit, ROI, total cash required, and break-even after-repair-value (ARV). The results update in real time as inputs change, making it useful for running multiple scenarios.

How to Use the Fix and Flip Calculator

Run numbers on any deal in under two minutes. The calculator requires four core deal inputs to produce results. Every other field has a preset default that can be adjusted to match specific loan terms or market conditions.

Step 1: Enter Deal Economics

These four numbers define the deal itself.

• Purchase Price: The contract price paid for the property. This determines the loan base, down payment, and land transfer tax.
• Rehab Budget: Total estimated cost of renovations, including materials and labor. Use the contractor bid, not a rough estimate. Rehab budget drives how much of the project a lender will finance and how long interest accrues.
• After Repair Value (ARV): The market value of the property after all renovations are complete — the projected sale price. ARV is the most consequential number in any fix and flip project.
• Project Timeline: Total months from purchase closing to sale closing. Include construction time plus realistic time on market. Each additional month increases interest carry and holding costs. 

Step 2: Set Loan Economics

These fields reflect the lender's terms. Adjust them to match the actual loan.

• Purchase Financed: The percentage of the purchase price the lender covers — equivalent to the acquisition loan-to-value (LTV). At 80%, a $300,000 purchase requires a $60,000 down payment.
• Rehab Financed: The percentage of rehab costs covered by the lender. At 100%, no rehab funds come out of pocket at closing. Funds are released in draws as renovations are completed.
• Interest Rate: The annual rate on the loan. Interest on the acquisition loan accrues on the full balance from day one. At Ridge Street Capital, interest on the rehab portion accrues only on funds drawn, not the full amount (non-Dutch interest).
• Origination Fee: A one-time lender fee at closing, applied to the combined acquisition and rehab loan.

Step 3: Enter Title Fees

Title costs vary by state and county. The defaults reflect a typical transaction and should be updated to match the specific market.

Step 4: Enter Sale and Marketing Costs

These costs reduce net proceeds at the sale closing: agent commissions (buyer and seller), staging, and monthly holding costs, including property taxes, property insurance, and utilities.

Reading the Outputs

The results panel updates in real time. Key figures to evaluate:

• Cash at Closing: Total funds needed on day one: down payment, origination, title fees, and transfer taxes.
• Total Cash Invested: Cumulative out-of-pocket across the entire project: cash at closing plus all interest and holding costs paid during the hold period. ROI is calculated against this figure.
• Total Profit: Net proceeds from the sale after all costs minus total cash invested.
• Total ROI and Annualized ROI: Total ROI measures return on deployed capital for the project. Annualized ROI scales that return to a 12-month equivalent. Use it to compare deals with different timelines.
• Break-Even ARV and ARV Cushion: Break-even ARV is the minimum sale price to recover every dollar invested. ARV Cushion shows how far the projected ARV sits above that floor. Below 10% indicates a thin margin with limited tolerance for cost overruns or valuation errors.
• +2 Month Impact: The profit reduction if the project runs two months beyond plan. Use this figure to set a contingency expectation before going under contract.

Max Offer Price Tab

Enter the ARV, rehab budget, timeline, and target ROI, then set loan terms and costs. The calculator solves backward for the maximum purchase price at which the deal achieves the target return.

Running numbers on a deal before applying is exactly the due diligence Ridge Street Capital looks for in a borrower. If the calculator output raises questions about deal structure, loan sizing, or whether a project qualifies, the lending team is available to work through the numbers directly. Reach out before submitting a formal application. 

The 70% Rule: Setting a Maximum Offer Price

The 70% rule is the standard starting point investors use to screen deals before running a full analysis. It calculates the Maximum Allowable Offer (MAO), the highest purchase price at which a deal still carries an acceptable margin.

MAO = (ARV × 70%) − Rehab Costs

The remaining 30% of ARV is not profit. It covers buying, holding, financing, and selling costs, with the investor's margin as what's left. Our full breakdown of the 70% rule covers a worked example, where each cost sits, and the conditions that move the percentage in either direction. Investors new to the strategy can see how it fits the broader evaluation process in the fix and flip loans for beginners guide.

After Repair Value (ARV)

ARV is the projected market value of the property after all renovations are complete, and lenders use it to determine how much they will lend. Most hard money lenders cap the loan at 70% to 75% of ARV regardless of the purchase price.

ARV comes from closed sales of properties renovated to the standard the rehab will reach, in the same submarket, sold within the last three to six months. Condition is the filter that matters most: comps in the property's current condition measure something else entirely. Active listings do not reflect actual market value and appraisers do not use them.

A conservative ARV is the single most important discipline in fix-and-flip underwriting. An ARV that lands 10% below the estimate on a $400,000 property cuts the sale price by $40,000, which is more than the entire projected profit on a deal bought at the 70% threshold. See our guide to how to calculate ARV for the comp selection and adjustment method appraisers use.

Holding Costs

Holding costs are the recurring expenses that accumulate every month the property is owned: property taxes, vacant property insurance, utilities, and any HOA dues. These costs accrue whether or not renovation is actively underway. On a $350,000 project with $600 per month in holding costs, a two-month delay adds $1,200 to the cost basis, in addition to the additional interest carry on the outstanding loan balance.

Return on Investment vs. Cash-on-Cash Return

Total ROI measures profit as a percentage of total cash invested in the project — down payment, origination, interest, holding costs, and all fees paid over the hold period. Cash-on-Cash return measures the same profit relative to the initial cash deployed at closing, excluding interest and carrying costs paid during the project. On a fix-and-flip, the total ROI is the more complete figure because the hold period interest payments are a real cash cost that reduces the investor's actual return.

Annualized ROI scales Total ROI to a 12-month equivalent, which allows fair comparison between deals with different timelines. A six-month flip and a twelve-month flip at the same total ROI produce very different annualized returns. The shorter project deploys capital more efficiently. Annualized ROI is the more useful metric when evaluating multiple deals simultaneously or deciding how to allocate capital across projects. 

Fix and Flip Calculation Case Study

This case study summarizes the fix and flip investment analysis using the Fix and Flip Calculator of a project financed by Ridge Street Capital.

Property: 3-bedroom, 2-bathroom single-family home

The deal generated $35,165 in profit on $65,310 in total cash invested — a 53.8% ROI over 12 months, annualizing to 90.8%. Cash at closing was $47,516. Financing closed within 14 days. 

Results

The deal demonstrates how the calculator functions as a pre-application screening tool.

Fix and Flip Calculation Mistakes to Avoid

• Using an optimistic ARV. ARV should be based on closed comparable sales within a defined submarket radius, not asking prices or properties in superior condition. An ARV 10% above market value erases the profit margin before renovation begins.
• Underestimating rehab costs. Contractor bids often exclude scope items that emerge during construction. A 10% to 15% contingency on top of the hard bid reflects realistic project costs more accurately than the initial estimate.
• Omitting holding costs. Property taxes, property insurance, and utilities are fixed costs that accrue regardless of construction pace. Excluding them overstates the projected profit on the deal.
• Using a single scenario. The calculator produces a single outcome based on the inputs entered. Running a base case, an optimistic case, and a pessimistic case.  For the stress case, extend the timeline by two months and reduce the ARV by 5%. This helps investors understand the range of outcomes the deal may produce.
• Ignoring the annualized ROI. A deal with a strong total ROI over 14 months may still underperform a smaller deal completed in 6 months when measured on an annualized basis. Annualized ROI allows investors to compare projects with different timelines more accurately. 

What To Do When Fix-and-Flip Calculator Numbers Don’t Work

A negative profit output from the calculator does not automatically mean the deal is dead. It means the deal does not work at the current inputs.

Three variables are directly negotiable before walking away. The purchase price is the most straightforward. A lower offer price improves the margin on every line item simultaneously. If the seller will not move, reducing the rehab scope is the next option: deferring non-essential upgrades reduces the budget, lowers interest carry, and shortens the timeline.

In some cases, a faster exit strategy improves the annualized return even if total profit stays the same. A deal that breaks even in six months is better than a loss that takes twelve.

If none of those adjustments produce a viable output, the deal does not pencil at current market conditions. Walking away from a deal that does not work is a better outcome than financing one that does not.

Ridge Street Capital reviews deals at the pre-application stage. If the numbers are close, a loan officer can confirm whether the loan structure can be adjusted to improve the economics before the investor commits to a purchase price.

Fix and Flip Financing with Ridge Street Capital

Ridge Street Capital is a private lender providing hard money loans and hard money refinancing for fix and flip projects across 35 states. In 2026, Real Estate Business Review recognized Ridge Street Capital as Hard Money Lender of the Year for its specialization in investor financing. Loans close in as few as 7 to 14 days. Term sheets are issued within 2 business hours of application.

Fix and Flip Calculator FAQs

What is a good ROI on a fix and flip?

Most experienced fix and flip investors target a minimum of 15% to 20% total ROI on deployed capital per project. An annualized ROI of 30% or higher, reflecting a project completed in six to eight months, is considered a strong return by most benchmarks. Markets like Ohio, Pennsylvania, Georgia, Indiana, and North Carolina, with higher ARVs and lower rehab-to-ARV ratios, tend to produce better margins. The more useful metric for comparing deals is annualized ROI, which accounts for how long capital is deployed.

What costs should be included in a fix-and-flip calculation?

A complete fix and flip analysis includes: purchase price, rehab budget, loan origination fee, loan interest carry, title and closing costs on the purchase, agent commissions on the sale, staging costs, and monthly holding costs (property taxes, insurance, utilities). Investors who omit holding costs or origination fees consistently overestimate profit on the front end.

How is the after-repair value calculated?

Investors develop an initial ARV estimate from a comparative market analysis before submitting a deal, using the comp criteria described above. For loan underwriting, the lender verifies ARV independently through an appraisal, desktop review, or internal CMA, and the lender's figure is the one that sizes the loan. The two numbers frequently differ. Our guide to how to calculate ARV covers the adjustment method appraisers use to reach theirs.