Fix and Flip Loan Calculator
Estimate financing costs, cash needed, projected profit, and ROI for a fix and flip project before requesting a personalized financing review. This estimate is informational only and is not an approval, rate quote, or commitment to lend.
- 1Property
- 2Financing
- 3Project Costs
- 4Your Results
Step 1 of 4: Property
Tell us about the property
Start with the property you are considering and your projected renovation scope.
The estimated cost of renovations and repairs.
The estimated value of the property once renovations are complete.
This calculator provides an illustrative estimate for educational and planning purposes only. It is not a loan estimate, loan approval, commitment to lend, rate quote, appraisal, investment recommendation, or guarantee of profit. Actual rates, payments, fees, eligibility, and project results vary by borrower, property, lender, construction costs, timelines, and market conditions. Borrowers should review personalized options with a qualified lending professional.
What Is a Fix and Flip Loan?
A fix and flip loan is a short-term financing option designed for real estate investors who purchase a property, renovate it, and resell it for a potential profit. These loans are commonly used when speed and flexibility matter more than the terms of a traditional mortgage.
Fix and flip financing is typically interest-only during the project and is repaid when the property sells. The structure of each loan depends on the lender, the borrower, and the property, and program requirements and availability vary by lender, borrower, and property.
How Fix and Flip Financing Works
Acquire and renovate
A fix and flip loan generally covers a portion of the purchase price and may also fund part of the renovation budget. The investor contributes cash toward the remaining costs.
Interest-only during the project
During the loan term, the borrower typically makes interest-only payments. The full loan balance remains due until the property is sold or refinanced.
Repay on sale
When the renovated property sells, the proceeds are used to repay the loan balance, interest, and any remaining costs. The structure of each loan depends on the lender and transaction.
Understanding ARV
After-Repair Value (ARV) is an estimate of what a property could be worth after renovations are complete. Lenders often use ARV to help determine how much they are willing to finance on a fix and flip project.
ARV is an estimate, not a guarantee, and depends on comparable sales, market conditions, the scope of work, and the quality of the renovation. A professional appraisal is typically required before a loan is finalized.
Loan-to-Cost and Loan-to-ARV
Loan-to-Cost (LTC)
Compares the requested loan amount to the total acquisition and rehab cost. It helps show how much of the project's cost is being financed versus how much cash the investor is contributing.
Loan-to-ARV
Compares the requested loan amount to the projected after-repair value. It helps lenders understand how the loan relates to the property's estimated finished value. Actual maximum ratios vary by lender and transaction.
Common Fix and Flip Costs
Acquisition and renovation
The property purchase price and the rehab budget for the renovation work. These are the core costs the project is built around.
Financing and holding
Interest-only payments during the term, origination points, and other closing and holding costs incurred while the property is being renovated.
Selling and transaction costs
Selling costs when the property is listed, such as agent commissions and other transaction expenses, often estimated as a percentage of ARV.
Frequently Asked Questions
What is a fix and flip loan used for?
Fix and flip loans are used to purchase and renovate a property that an investor intends to resell. They are typically short-term and structured around the project timeline.
Is this calculator result a loan quote or approval?
No. The calculator provides an informational estimate only. It is not a loan offer, approval, commitment to lend, or guarantee of profit. Actual terms depend on lender underwriting and property review.
Does the calculator include every project cost?
No. The calculator includes the costs you enter. It does not capture appraisal, legal, inspection, title, escrow, extension, draw, servicing, or prepayment fees unless you include them in the fields provided.
What is After-Repair Value (ARV)?
ARV is an estimate of what a property could be worth after renovations are complete. Lenders often use ARV to help determine how much they are willing to finance. ARV is an estimate, not a guarantee, and depends on comparable sales, market conditions, and the scope and quality of the renovation.
What is the difference between loan-to-cost and loan-to-ARV?
Loan-to-Cost compares the requested loan amount to the total acquisition and rehab cost. Loan-to-ARV compares the requested loan amount to the projected after-repair value. Both help lenders and investors understand how much of the project is being financed versus how much cash the investor is contributing.
Can Anchor Capital Lending help with fix and flip financing?
Anchor Capital Lending helps borrowers explore available lending options. Submitting an inquiry does not guarantee approval or constitute a commitment to lend.
Ready to Discuss Your Fix and Flip Project?
Schedule a consultation to review your scenario and available lending options. We'll help identify the appropriate next steps for your project.
Submitting an inquiry does not guarantee approval or constitute a commitment to lend. Financing availability and terms are determined following review by the appropriate licensed lending professional.
This calculator provides an illustrative estimate for educational and planning purposes only. It is not a loan estimate, loan approval, commitment to lend, rate quote, appraisal, investment recommendation, or guarantee of profit. Actual rates, payments, fees, eligibility, and project results vary by borrower, property, lender, construction costs, timelines, and market conditions. Borrowers should review personalized options with a qualified lending professional.