Fix and Flip Loan Calculator: Estimate Your Costs

Planning a fix and flip? Accurate cost estimates are the foundation of a profitable project. A Fix and Flip Loan Calculator helps you determine how much financing you need, what your carrying costs might look like, and whether the potential profit justifies the risk. This guide explains the key inputs, the math behind the calculator, how to interpret results, and practical tips to improve outcomes.

Why use a Fix and Flip Loan Calculator?

A calculator helps you test scenarios quickly so you can:

• Estimate the total loan amount required (purchase + rehab).
• Project monthly carrying costs while the property is being renovated.
• Calculate break-even points and potential profit after sale.
• Compare financing structures (different loan-to-cost or loan-to-value rules).
• Decide whether a deal meets your minimum return thresholds before you invest time and money.

Key terms to know

Before using the calculator, make sure you understand these common terms:

• Purchase Price: The price you pay to buy the property.
• After Repair Value (ARV): The estimated market value after renovations.
• Rehab Budget: Total cost to complete renovations and make the property market-ready.
• Loan-to-Cost (LTC): The percentage of purchase+rehab the lender will finance.
• Loan-to-Value (LTV): The percentage of ARV the lender is willing to finance.
• Points & Fees: Upfront fees charged by the lender, often expressed as a percentage of the loan.
• Holding Period: How long you expect to own the property before selling (in months).
• Selling Costs: Expenses when selling (closing costs, agent commissions, staging, transfer taxes, etc.).
• Net Profit: Sale proceeds minus outstanding loan balance, selling costs, carrying costs, and acquisition/rehab costs.

What inputs does a Fix and Flip Loan Calculator need?

Most calculators request the following inputs. Accurate inputs produce useful results, so gather realistic estimates before you start.

1. Purchase price — the agreed price to buy the property.
2. Rehab budget — detailed cost estimate for repairs and improvements.
3. Estimated ARV — a conservative after-repair valuation based on comps.
4. Desired loan coverage — either LTC or LTV. Many lenders use one or the other, or apply both caps.
5. Points and closing fees — upfront fees expressed as a dollar amount or percentage.
6. Holding period (months) — how long before you sell.
7. Carrying costs — monthly expenses such as insurance, property taxes, utilities, HOA fees, and any loan interest or fees that are paid monthly.
8. Selling costs — realtor commissions, closing fees, and any marketing/staging expenses.
9. Reserves or contingencies — extra budget for unexpected rehab items (commonly 5–15% of rehab, depending on project risk).

How the calculator estimates financing and cash needed

A simple step-by-step logic the calculator uses:

1. Determine the maximum eligible loan amount using LTC and/or LTV. Most lenders will use the lower of the two caps (for example, they may finance up to X% of purchase + rehab or Y% of ARV). Enter the LTC or LTV your lender provides to compute this limit.
2. Calculate upfront fees (points, origination, closing) and subtract them from loan proceeds if they are financed or add them to your cash requirement if they are paid out-of-pocket.
3. Estimate monthly carrying costs for the holding period and add them to total project costs.
4. Calculate total project cost = purchase price + rehab budget + carrying costs + selling costs + fees + reserves.
5. Compute cash required at purchase = purchase price minus loan proceeds applied to purchase, plus any down payment, and any fees due at closing that are not financed.
6. Estimate projected sale proceeds = ARV minus selling costs and repayment of any outstanding loan balances and unpaid fees.
7. Compute net profit and relevant returns (cash-on-cash, gross margin, ROI).

Basic formulas (useful when you build or audit a calculator)

These formulas show the relationships calculator software uses — replace placeholders with your numbers from lender quotes and project estimates.

• Maximum Loan (by LTC) = LTC × (Purchase Price + Rehab Budget)
• Maximum Loan (by LTV) = LTV × ARV
• Allowed Loan = min(Maximum Loan by LTC, Maximum Loan by LTV)
• Carrying Cost Total = Monthly Carrying Cost × Holding Period (months)
• Total Project Cost = Purchase Price + Rehab Budget + Carrying Cost Total + Selling Costs + Points/Fees + Reserves
• Net Sale Proceeds = ARV – Selling Costs – Loan Repayment – Any Unpaid Fees
• Net Profit = Net Sale Proceeds – (Cash Invested + Any Additional Outlays)
• Cash-On-Cash Return = Net Profit ÷ Cash Invested

Step-by-step example using placeholders (no rate shown)

Below is the sequence for running a scenario. Do not substitute a rate here — your lender will provide specific interest terms and you should insert that value into your calculator where required.

1. Enter purchase price and rehab budget.
2. Enter ARV based on comparable sales.
3. Enter LTC and/or LTV provided by the lender; the calculator will use the lower cap to determine the allowed loan amount.
4. Add estimated points/fees and selling costs.
5. Enter monthly carrying costs and expected holding period.
6. Review loan proceeds, calculate cash required at closing, and estimate net profit at sale.
7. If the result does not meet your minimum return or cash-on-cash threshold, adjust the rehab plan, purchase price, or contingency to re-run the scenario.

What the calculator won’t tell you (and why human judgment matters)

Automated calculators are powerful but they have limits. Use them as a planning tool, not a guarantee. They cannot:

• Precisely predict ARV — accurate comps and local market knowledge are essential.
• Guarantee contractor performance, permit timelines, or unexpected defects discovered during demo.
• Know final lender underwriting decisions — eligibility and exact loan structure depend on lender reviews.
• Replace a detailed scope of work and itemized contractor bids.

Practical tips to get more accurate estimates

• Use conservative ARV estimates (slightly below optimistic comps) to protect margins.
• Create a detailed line-item rehab budget and get at least one contractor bid for major trades.
• Include a contingency line (commonly 5–15% of rehab) for unseen conditions.
• Estimate holding time realistically — delays lengthen carrying costs and reduce profit.
• Understand how your lender disburses draws and whether interest accrues on the full loan amount or only on disbursed funds.
• Confirm whether points and fees are financed or paid out-of-pocket; financed fees reduce net loan proceeds.

Typical eligibility requirements (what lenders often ask for)

Requirements vary by lender and by product, but many fix and flip financing options share common criteria. Expect to provide or meet:

• A minimum credit score (many products begin around mid-600s, though exact cutoffs vary).
• Property must generally be non-owner-occupied (investment property).
• A solid investment plan with renovation budget details and a timeline for completion.
• Real estate experience is often preferred but not always required; documented experience can improve terms.
• Minimum loan amounts for some products (some start around six digits), but options exist at different loan sizes.
• Proof of financial stability and capacity to cover down payment, fees, and carry costs.
• No recent bankruptcy filings in many programs (timeframes vary by lender).

Approval times vary, but most clients receive loan approval within 7–10 business days, so you can start your project as soon as possible.

Common fee categories to include in your calculations

• Origination fees and points (upfront)
• Underwriting and processing fees
• Title and escrow fees at purchase and sale
• Inspection and appraisal fees
• Draw fees (if the lender charges fees per disbursement)
• Prepayment penalties or extension fees if the project takes longer than planned

How to interpret outputs from the calculator

When your calculator returns figures, focus on these key outputs:

• Cash Required at Close: How much money you must bring to the table immediately. If you are short here, the deal will not close.
• Break-Even ARV: The ARV at which you would recover all costs (purchase, rehab, fees, selling costs). Build in a margin above break-even to account for errors.
• Net Profit: The amount left after paying all costs and repaying the loan. Consider whether this compensates you for time, risk, and capital.
• Cash-on-Cash Return: Net profit divided by cash invested. Use this to compare opportunities or your minimum required return.

Ways to improve the project outcome

• Negotiate a lower purchase price to increase margin.
• Increase project efficiency—manage the schedule tightly to reduce holding costs.
• Shop contractors and materials for competitive pricing without sacrificing quality.
• Focus renovations that materially increase value rather than cosmetic upgrades with low ROI.
• Work with lenders offering flexible draw schedules to match disbursements to actual rehab progress.
• Keep contingency funds reserved to avoid construction delays from funding shortfalls.

How to get a personalized loan quote

Every project is unique. Lenders will want to see your purchase contract, scope of work, and basic financials. For a tailored quote and to understand the loan structure that best matches your deal, request a personalized quote from an experienced fix and flip financing partner.

Get a personalized fix & flip loan quote. Rates are competitive and vary based on your credit score, experience, and project specifics. Reach out for a personalized quote today.

Checklist: Documents and info to have ready

• Purchase agreement for the property
• Detailed scope of work and contractor bids
• Estimated ARV or comparable sales data
• Proof of funds for required down payment and reserves
• Basic financial statements or bank statements
• Personal and business identification
• Evidence of experience (if available), such as a portfolio of past flips

Common pitfalls to avoid

• Underestimating carrying time — many projects hit delays due to permits, inspections, or contractor scheduling.
• Skipping proper comps for ARV — an inflated ARV will erode profit when the market sets a different price.
• Not accounting for financed fees — if fees are financed, they reduce net proceeds and affect cash needs.
• Using an unrealistic rehab budget without contractor input.
• Not securing a contingency fund for unexpected repairs discovered during renovation.

Conclusion

A Fix and Flip Loan Calculator is an essential planning tool that helps you evaluate deal viability quickly and in detail. Combine conservative inputs, reliable contractor estimates, and a clear understanding of lender rules to get the most realistic picture of profit and risk. Run multiple scenarios and always include contingency and conservative ARV assumptions to protect your returns.

Ready to run the numbers with a lender? Request a personalized quote here. Rates are competitive and vary based on your credit score, experience, and project specifics. Reach out for a personalized quote today.

FAQs — Fix and Flip Loan Calculator

What is a fix and flip loan calculator?

It’s a tool that uses your inputs (purchase price, rehab costs, ARV, loan coverage limits, and fees) to estimate how much financing you can get, what cash you’ll need, and what profit you might realize after selling the property.

Which inputs are most important for accuracy?

The most important are a realistic ARV, a detailed rehab budget, and an accurate expected holding period. These drive the largest swings in projected profit and cash requirements.

How do lenders determine how much they will fund?

Lenders commonly use loan-to-cost (LTC) and loan-to-value (LTV) rules. They typically finance a percentage of the purchase plus rehab or a percentage of the ARV, and they will offer the lower of those limits. Exact formulas and caps vary by lender and product.

How fast can I get approved for a Fix & Flip loan?

Approval times vary, but most clients receive loan approval within 7–10 business days, depending on documentation and deal complexity.

Can I finance both the purchase and the renovation costs?

Yes — many fix and flip loans cover both purchase and renovation costs. The exact amount depends on the lender’s LTC and LTV policy and the quality of your project documentation.

How long is the typical loan term?

Typical fix and flip loan terms range from short durations appropriate for flips to longer terms for extensive rehabs. Terms commonly range from a few months up to around 12–18 months depending on the product and project timeline.

What if my project takes longer than expected?

If you need more time, many lenders offer extension options. Contact your lender in advance to discuss extension terms and avoid penalties or default.

Where can I get a precise quote for my deal?

For an exact quote based on your project details, complete the lender’s application and share the purchase contract, scope of work, and financial information. You can start by requesting a personalized quote here: Get a personalized fix & flip loan quote. Rates are competitive and vary based on your credit score, experience, and project specifics. Reach out for a personalized quote today.

Is a calculator a substitute for underwriting?

No. A calculator provides estimates and scenario planning. Final underwriting by a lender will verify property condition, title, borrower qualifications, contractor plans, and other elements that can influence loan approval and structure.

Can I use the calculator to compare multiple deals?

Yes. Run the same set of output metrics for each deal (cash required, net profit, cash-on-cash return, holding time) to compare opportunities on a consistent basis.