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Real Estate Investment Calculator

Evaluate fix and flip opportunities and estimate your profit margin before you buy.

Property Details

Enter the investment costs and projected value.

Potential Profit

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Total Investment

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ROI

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The 70% Rule

A common rule of thumb for house flipping: You should not pay more than 70% of the After Repair Value (ARV) minus the repair costs.

Max Offer (70% Rule):$---

Understanding the Real Estate Investment Calculator

Evaluate potential real estate deals with precision. Our Real Estate Investment Calculator helps house flippers and investors analyze profitability by comparing purchase price, repair costs, and closing fees against the After Repair Value (ARV). Built-in '70% Rule' analysis gives you an instant check on deal viability.

Guide

How to use the Real Estate Investment Calculator

  • 1Enter the 'Purchase Price' you expect to pay.
  • 2Estimate your 'Repair / Rehab Costs' (materials + labor).
  • 3Add 'Closing / Holding Costs' (fees, inspections, loan carrying costs).
  • 4Determine the 'After Repair Value (ARV)' based on comparable sales.
  • 5Check the 'Potential Profit' and 'ROI' to see if the deal meets your targets.
  • 6Review the 'Deal Breakdown' chart to visualize your cost basis vs. exit value.
  • 7Consult the '70% Rule' card to see if your offer is conservative enough.
Applications

Common Use Cases

House Flipping: quickly screen MLS listings to find undervalued properties.
BRRRR Strategy: Determine if you can leave enough equity in the deal to refinance out.
Wholesaling: Calculate the maximum allowable offer (MAO) you can make to a seller while leaving room for an investor's profit.
Renovation Budgeting: See how increasing your renovation budget impacts your bottom line if ARV remains static.

The Maths Behind the Calculation

Profit = ARV - (Purchase Price + Repairs + Closing Costs)

ROI (Return on Investment) is calculated as (Profit / Total Investment) * 100. The calculator sums up all your cash outlays to find your Total Investment basis and subtracts this from your exit price (ARV) to find the net profit.

Knowledge Base

Frequently Asked Questions

What is the 70% Rule?

It's a guideline stating you shouldn't pay more than 70% of the ARV minus repairs. Ideally, this leaves a 30% margin for profit and unknown risks.

What is ARV?

After Repair Value is the estimated market value of the property after all planned renovations are completed.

Does this include capital gains tax?

No, this calculator shows gross profit before taxes. Consult a CPA for tax liabilities.

How do I estimate closing costs?

Closing costs typically range from 2% to 5% of the purchase price, but holding costs (utilities, loan interest) should also be added for the duration of the project.

Regional Notice: United States

"Federal tax estimates are based on 2024 brackets. Consult a tax professional for official filing."