Gross margin is a fantasy number. This computes what actually hits your account — after loan carry, points, and selling costs — and the cash you need to get there.
PURCHASE PRICE ($)
REHAB BUDGET ($)
AFTER-REPAIR VALUE ($)
LOAN-TO-COST (%)
BRIDGE RATE (%)
POINTS (%)
MONTHS TO SALE
SELLING COSTS (%)
Margin holds up? Get the bridge priced.
These numbers are indicative — a licensed loan officer reviews your exact scenario and firms them against a live lender panel. No documents to start.
Every flip pencil starts with the same fantasy: ARV minus purchase minus rehab. This calculator adds the three costs that actually decide whether you make money: loan carry (interest-only on the bridge for every month you hold), points at origination, and selling costs (agent commissions, transfer taxes, concessions — typically 6–8% of the sale).
The loan sizes the way bridge lenders size it: your loan-to-cost percentage against purchase + rehab, capped at 70% of ARV, whichever is lower. The gap between all-in cost and the loan is your cash to close.
Reading your result
Experienced operators want 15–20%+ margin on basis — not because they're greedy, but because flips find surprises: a slow month costs a full carry payment, a soft comp costs five figures. The ROI figure annualizes badly on long holds; two extra months on the market is often the difference between a good flip and a break-even one.
LTC tiers by experience, draw mechanics, and exit strategy live in the bridge loan guide; how to comp the ARV honestly is in ARV explained.
Frequently asked questions
What profit margin should a flip have?
Most experienced operators underwrite to at least 15–20% of all-in basis. Below 10%, normal surprises — appraisal softness, timeline slips, change orders — routinely turn the deal break-even or negative.
What does loan-to-cost mean?
LTC is the loan as a percentage of purchase price plus rehab budget. Caps step with experience: roughly 75% for first-timers to 85% for operators with 4+ exits, always subject to the 70%-of-ARV ceiling.
Do I pay interest on the rehab budget before drawing it?
Depends on the lender: "Dutch" lenders charge interest on the full commitment from day one, "non-Dutch" only on funds as drawn. Non-Dutch saves real carry on heavy rehabs — ask explicitly.
What if I can't sell before the loan matures?
Extensions (fee per month), a bridge-to-DSCR refinance into a rental hold, or a price cut. Plan the fallback before closing — good lenders underwrite your exit and so should you.