With so many people getting involved with fix and flip transactions, we decided to put together a rehab profit calculator for hard money loans.

This calculator will help you quickly see the potential profit in a transaction, taking into account the rehab costs, selling costs, closing costs, loan costs and gap financing or equity participation costs.

By being able to calculate quickly on transactions as you evaluate them whether they are profitable or not, you can spend more time locking up the winners and not wasting time with the losers.

You can visit the rehab profit calculator page here.

There are a number of fields that are set with default values. These include the rate, the loan to after rehab value and more. These can all be changed, so feel free to put in numbers as they relate to your situation.

In addition, on the gap financing portion you have the ability to calculate three different types of gap financing that are common, flat return, annualized return and participation. You also may calculate using any two or all three values. The can also help you when negotiating with your gap lender as you can see very quickly what your profit potential will be.

When entering values, please be sure you use accurate numbers. Of the hard money loans we place, the rehabbers who are not making money are typically making one of two mistakes. Either their after rehab value is inaccurate or they have overruns on their rehab project.

Overruns are a part of the job, and there is no way to completely avoid them all the time (although working with a great contractor that you trust can certainly help). Inaccurate after rehab value, however, should not be a factor. Make sure you run comps yourself, even if your realtor is doing it for you. In addition, make sure you drive each and every comp so you are certain of your as complete value.

Other than that, everything on the calculator should be pretty straight forward. Give it a try and feel free to contact me directly with any feedback. Of course, should you need financing for your fix and flip, we can help. Learn more about our fix and flip programs on our hard money rehab loans page.