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Fix and Flip Calculator

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Fix and flip calculator to calculate the profits of flipping a house. Use this house flipping calculator to estimate how much you can make from any real estate property by fixing and flipping.

House Flipping Calculator

House Price $
Down Payment %
Repair Cost (included in the loan) $
Other Cost and Fees $
State, Recording and Transfer Tax %
Value After Repair $
Home Insurance $
Property Tax $
Hard Loan Points (included in the loan) %
Interest Rate %
Estimate Repair Time(months)
Estimate Time to Sell(months)
Cash Invest
Loan Amount
Monthly Interest
Total Interest

What is a fix and flip loan?

A fix and flip loan is a short-term loan to finance the purchase and renovation of a property. The main goal for a fix and flip is to sell the property for a profit after the repairs and modeling are done.

How does a fix & flip loan work?

There are different types of fix & flip loans and each works differently. A fix-and-flip loan can be structured as a short-term loan or a line of credit depending on the lender and the loan type. Fix and flip loans are secured loans that use the property being purchased as collateral. When the borrower fails to make payment, the lender has the right to seize the property. To lenders, fix and flip loans are riskier loans than traditional home mortgages. Therefore, the interest rate for fix and flip loans is generally higher than conventional mortgages.

Types of fix and flip loans?

Following are a few of the most common types of fix and flip loans, each has its own characteristics.

Hard Money Loans

A hard money loan is a short-term loan for investment properties that are offered by people or private companies that are willing to accept the property as collateral. Most traditional lenders do not offer hard money loans. A hard money loan is a secured loan that uses the property as collateral. The application process for a hard money loan is much faster than getting a traditional mortgage from a bank as it is less strict. It's possible to close on a loan in as little as a few days, whereas a traditional lender would take at least one month to process and underwrite the mortgage. Hard money loans are perfect for borrowers who are looking to close on their property quickly. However, the downside of a hard money loan is that it has a much higher interest rate compared to a traditional mortgage as lenders are taking significantly higher risks.


A home equity line of credit or HELOC is another popular fix and flip loan often used by real estate investors to fund their next investment. For homeowners who have built up a significant amount of equity in their primary residency, they can leverage their home equity to buy a property for fix and flip. HELOC uses your home equity as collateral to borrow money at a lower interest rate than most other fix-and-flip loans. HELOC works very much the same way as a credit card where you are given a credit limit, and you can use the money up to that limit. You can use a HELOC up to a certain limit. Once you pay off the balance, you can borrow more. The interest payment is based on how much you use, not the credit line limit. You can learn more and calculate the monthly payment with the HELOC calculator.

Home Equity Loans

Home equity loans are similar to HELOC which allows homeowners to borrow money against their home equity and have low-interest rates. Home equity loans are fixed-interest installment loans. Once approved, the borrower is required to make monthly payments to repay the loan, and the monthly payment stays the same throughout the course of the loan. Home equity loans allow homeowners to borrow up to 85% of their home value minus the balance on their mortgage. The more equity you have, the more money you can borrow for fix and flip. The disadvantage of a HELOC or home equity loan is the risk of losing your home if you default on your payments.

Cash Out Refinance

Another type of fix-and-flip loan that real estate investors often use is a cash-out refinance. A cash-out refinance is when homeowners refinance their existing mortgage on their primary residence into a larger mortgage than the outstanding balance. It allows the homeowner to pocket the difference and use it to fund his fix and flip investment. Most lenders allow homeowners to cash out up to 80% of their loan to value.

Traditional Mortgage

For qualified borrowers, a traditional mortgage is another way to finance the purchase of a fix and flip property. It is not the ideal type of loan for fix and flip, but it can be done. Getting a traditional mortgage is more complicated than getting a hard money loan as there will be stringent rules and a much longer underwriting and approval process. It will often take as long as 3 months to close on the property. Banks prefer houses that are move-in ready so that they can estimate the home value and use it as collateral. Since most houses for fix and flip are not in good condition, you might have a hard time getting a mortgage with a traditional lender. Not only will you need a good credit score, and a stable income, but you will also need assets, cash, or significant equity in another house to use as collateral. If you have experience in fixing and flipping in the past, it will increase your odds of getting approved.

Business Line of Credit

A business line of credit is another great funding source for experienced house flippers. A business line of credit is like HELOC where you are given a limited amount and you draw from a specific amount of money whenever you need. Once you pay off the balance, you can borrow more. The interest is calculated based on the amount of money you use. The more money you use, the higher the interest payment you will need to repay. Unlike a HELOC, you do not need to use your home as collateral, but you will pay a much higher interest than a HELOC. A business line of credit is available from traditional lenders and banks. You will need to have a good credit score to get competitive rates and strong financial background to get approved.

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