Foreclosure Profit Calculator (Fix & Flip + Rental)
Screen foreclosure opportunities faster. Estimate net profit, ROI, cash-on-cash return, and your max allowable offer using the 70% rule—then validate the deal with Foreclosure Data Hub’s daily updates and AI reports.
What you’ll get
Investor-grade outputs for fast go/no-go decisions.
Net Profit
After carry + financing
ROI
Profit / cash invested
Cash-on-Cash
Annual cash flow / cash
MAO
70% rule offer cap
Jump to
Calculate your deal
Enter assumptions on the left. Your results update instantly on the right, including your 70% rule max allowable offer.
Deal Assumptions
Enter your numbers and get instant net profit, ROI, cash-on-cash return, and a 70% rule max allowable offer.
For flips: total carry cost. For rentals: annual costs (taxes, insurance, vacancy, maintenance, management).
Results
Real-time metrics investors use to decide if a foreclosure deal pencils out.
Net Profit
$0
ARV minus purchase, rehab, holding costs, and estimated financing.
ROI
0%
Net profit divided by cash invested.
Cash-on-Cash
0%
Annual cash flow divided by cash invested.
Max Allowable Offer (70% Rule)
$0
A fast screening number: (ARV × 70%) − rehab. Tighten for risk, location, and exit costs.
Investor insight
Based on the 70% rule, your maximum purchase price should be: $0
Want daily foreclosure deals analyzed automatically?
Use this calculator to screen margins in seconds, then pull the underlying data you need to act confidently: refreshed filings, owner details, auction dates, valuations, and AI-powered investment insights.
How this calculator works
Educational, investor-focused guidance to help you price risk correctly and avoid overpaying.
At-a-glance model
A quick model to decide if a deal is worth diligence.
The workflow
- Confirm ARV from closed comps
- Scope rehab + contingency
- Cap your offer with MAO
Quick formulas
70% rule MAO: (ARV * 0.70) - Rehab.
Fix and flip calculator
Work backward from ARV, then subtract real costs.
Key takeaways
ARV
Closed comps > list prices.
Rehab
Scope + contingency.
Timeline
Time kills returns.
A profitable flip starts with a clean, repeatable model. Screen the deal by working backward from ARV using closed comps, then subtract every cost it takes to buy, renovate, and carry the property to resale. What matters is not just “profit,” but whether the deal has enough cushion for surprises.
Anchor ARV to comps that match beds/baths, square footage, lot size, and finish level. If the market is cooling, use a conservative ARV and plan for concessions.
How to calculate fix and flip profit
At a minimum, flip profit equals ARV minus purchase price minus rehab cost. Real-world results hinge on the costs investors often underestimate: carrying costs (taxes, insurance, utilities, permits), financing charges, and the time it takes to sell. This foreclosure profit calculator includes holding costs and financing so your net profit reflects a more realistic investor view.
For a true offer, add transaction costs (closing fees, resale commissions) and a rehab contingency. Many investors require the deal to work with 10%–15% contingency.
Foreclosure profit calculator
Underwrite with conservative assumptions.
Conservative checklist
- ✓Validate ARV with tight comps
- ✓Line-item rehab + contingency
- ✓Model time and resale velocity
Foreclosure deals can be high margin, but they are rarely clean. Access, title, condition, and timeline risk raise uncertainty. Use a foreclosure profit calculator to screen quickly: if the deal only works under perfect assumptions, pass.
For auctions, build extra margin for unknown interior condition and legal risk. For REO, plan for longer negotiation cycles. Either way, treat time as a cost.
How holding costs affect ROI
Holding costs compound silently. Each extra month reduces net profit and can crush ROI. With similar ARV spreads, the shorter timeline often wins.
Important: the holding cost input is applied to flip net profit and also used as the annual cost line in the rental cash flow estimate. If you’re analyzing a rental, enter annual operating costs (not monthly) for the cleanest cash-on-cash number.
70% rule calculator
A fast screening heuristic for offer discipline.
Use it correctly
Use the 70% rule as a first pass, then tighten your offer using your own minimum profit requirement.
The 70% rule is a screening heuristic to avoid overpaying. It’s a quick filter, not a guarantee. Adjust the percentage based on market liquidity, rehab risk, and your confidence in the scope.
Use it as a first pass, then tighten your offer using your own minimum profit requirement.
When the 70% rule fails
The 70% rule can be too strict in hot markets and too loose in slow markets. It also breaks when rehab is uncertain, interiors can’t be verified, or resale costs are high. Use it as a starting point, then underwrite with real comps and realistic timelines.
Max allowable offer calculator real estate
MAO is your purchase price ceiling.
Rule of thumb
MAO = (ARV * 0.70) - Rehab
Then subtract selling costs, closing fees, and your profit target.
The max allowable offer (MAO) is the most you can pay and still hit your return targets. The 70% rule version is (ARV × 0.70) − rehab. Refine from there by subtracting selling costs, fees, and contingency.
How to calculate max allowable offer
Start with ARV, subtract rehab, selling costs, and your required profit. The remainder is your max purchase price. If you’re financing, include points and interest.
How professional investors evaluate foreclosure deals
Serious buyers combine fast math with verified data: tight comps, scoped rehab, conservative timelines, and reserves for surprises. If the deal doesn’t clear your hurdle rate with conservative assumptions, walk.
Foreclosure profit calculator FAQs
Quick answers to common investor questions about the 70% rule, ROI, and max allowable offer.
How does this fix and flip calculator compute net profit?
Net profit is calculated as ARV minus purchase price, rehab costs, holding costs, and estimated financing cost. It’s a simplified investor model designed for fast screening—add closing costs, commissions, and contingencies for a full underwriting.
What is a foreclosure profit calculator used for?
A foreclosure profit calculator helps you estimate whether a distressed deal has enough margin after repairs and carrying costs. Investors use it to compare opportunities quickly and avoid overpaying on auction and REO properties.
How does the 70% rule calculator determine max allowable offer?
The 70% rule estimates MAO as (ARV × 0.70) − rehab cost. It’s a quick heuristic to leave room for transaction costs, holding risk, and profit. In competitive markets, investors may tighten or loosen the percentage based on deal risk and exit speed.
Is this a max allowable offer calculator real estate investors can rely on?
It’s reliable for first-pass screening, but it’s not a substitute for full underwriting. For accuracy, validate comps, renovation scope, days-on-market, resale costs, rent assumptions, and financing terms before submitting an offer.
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