Fix and flip calculator: what's left when it sells?

Put in the purchase price, the rehab budget and what the house should sell for. The calculator sizes the loan, adds up interest, points, holding and selling costs, and shows your profit and your return on the cash you put in. It opens on an illustrative flip with the full rehab financed, since United Lending publishes up to 100% of the rehab.

What it answersHow much cash does this flip need, and how much does it make?

Estimated profit25%+ return on your cash

$25,271

Return on your cash

50.4%

Annualized

86.4%

Your cash in the deal

$50,154

Loan amount

$200,400

Rule-of-thumb check: 70% of ARV minus the rehab puts a ceiling offer at $124,500.

Cost breakdown

Purchase price	$148,000
Rehab	$82,000
Buying costs	$3,700
Points	$4,008
Interest	$9,066
Holding costs	$3,780
Selling costs	$19,175
Total cost	$269,729

Get real terms on this flip

What to enter

The loan fields are test values, not a United Lending rate or limit. Your written terms set the real rate, points and limits.

Purchase price: The contract price.
Rehab budget: The full scope of work, priced line by line. Add a contingency; renovations rarely come in under budget.
After-repair value (ARV): What the finished house should sell for, based on recent comparable sales nearby.
Months until sold: Purchase to closing on the sale: the renovation plus time on the market.
% of price and % of rehab financed: How much of each the loan covers. United Lending publishes up to 95% of the price and up to 100% of the rehab.
Max loan, % of ARV: Many short-term lenders also cap the total at a share of the finished value. If that cap is lower than the price and rehab percentages, it decides the loan. Use it to compare offers.
Interest rate and points: Interest is charged monthly; points are paid at closing as a percentage of the loan.
Buying, selling and holding costs: Closing costs to buy (as a share of price), commissions and closing costs to sell (as a share of ARV), and monthly taxes, insurance and utilities.

The math

How each number is worked out.

Every result, one line at a time, so you can check it by hand.

Profit = ARV − (price + rehab + buying costs + points + interest + holding costs + selling costs)

Loan amount: The smaller of (price × % of price financed + rehab × % of rehab financed) and ARV × max loan %.
Interest: Charged on the purchase portion for every month, and on about half the rehab portion on average, because rehab money is released in draws as work is done.
Points: Loan amount × points %.
Your cash in the deal: Price + rehab + buying costs + points + interest + holding costs − loan amount. Selling costs come out of the sale.
Return on your cash: Profit ÷ your cash in the deal. Annualized multiplies it by 12 ÷ months.
70% check: 70% of ARV minus the rehab: a common rule of thumb for a ceiling offer. It's shown for reference only.

Worked example

A $148,000 flip with an $82,000 rehab.

Illustrative numbers; the calculator opens on them. The 80% of price, rate, points and ARV cap are test values, not United Lending's terms or a quote.

Worked example

Seven months, sold for $295,000

Loan: 80% of price + 100% of rehab: $200,400
Interest at 9.75% for 7 months: $9,066
Points (2%): $4,008
Buying costs (2.5%): $3,700
Holding costs ($540 a month): $3,780
Selling costs (6.5% of ARV): $19,175
Total cost: $269,729

Profit at $295,000$25,271

Your cash in this deal is about $50,150, so the return on cash is about 50%. Illustrative only.

The loan here is $200,400: 80% of the $148,000 price plus the full $82,000 rehab. That's under the example 75%-of-ARV cap of $221,250, so the cap doesn't bind.

Most of the cost after the house and the work is the sale itself. Selling costs of 6.5% are $19,175, more than twice the interest bill. Every extra month adds about $1,835: roughly $1,295 of interest and $540 of holding costs.

Tips

Ways to protect the margin

Shorten the timeline. Line up contractors and permits before closing; every month of interest and holding costs comes straight out of profit.
Back up the ARV. Pull recent comparable sales for houses finished to the same level, not the best sale on the street.
Price the rehab properly. A line-item budget with a contingency makes draws smoother and the numbers more reliable.
Run a slower-sale scenario. Add two months and drop the ARV 5% to see whether the deal still works.

Mistakes to avoid

Common mistakes

Forgetting selling costs, which are often the biggest cost after the purchase and the rehab.
Assuming the full rehab is available on day one. Rehab money is usually released in draws after work is inspected.
Using an ARV the comparable sales don't support.

Questions

Calculator questions

How much of a flip will United Lending finance?

Published limits are up to 95% of the purchase price and up to 100% of the rehab cost, on 12–18 months interest-only terms. The exact amount for your project depends on the property, the numbers and your experience, and comes in your written terms.

Is there a prepayment penalty if I sell early?

No. Fix and flip loans have no prepayment penalty, so selling early cuts your interest cost.

Is there a minimum credit score for flip loans?

We don't publish one for fix and flip loans. Your credit is part of the terms your loan officer quotes for the deal.

How fast can a flip loan close?

It depends mostly on the appraisal, the title work and how quickly your documents come in. Tell us your contract date on the first call.

For planning only. A calculator result is not a loan offer, a rate quote or an approval. United Lending sizes a loan from its own appraisal, the property's rent or budget, your credit and experience, and underwriting.