$46,581
The carry
Every extra month costs $2,871 in interest and holding. Six months of slippage would take $17,224 out of the profit.
- Total project cost
- $285,000
- Loan at 85% of cost
- $242,250
- Points
- $4,845
- Interest over 6 months
- $13,324
- Buying costs
- $4,400
- Holding costs
- $3,900
- Selling costs
- $26,950
- Cash you have to put in
- $69,219
- Net profit
- $46,581
- Cash-on-cash return
- 67.3%
What this is doing
- The after-repair value is a guess until a buyer signs. Run the number again with the value 10% lower and see whether the project still works — that is the only test that matters.
- This model assumes the rehab budget is drawn at the start. A staged draw reduces the interest and is worth modelling separately with your lender.
- Every figure here is illustrative. It is generated from the numbers you typed using published rules, and it is not a rate quote, a pre-qualification, or an offer of credit.
The rule this page applies
Profit is the after-repair value less selling costs, less purchase and rehab, less points, less interest for the months held, less buying costs and carrying costs. Return is that profit over the cash you actually had to put in.
Source: Standard project accounting
Questions people ask about this one
Why is my cash-in so high?
Because the down payment on cost, the points, the buying costs and every month of interest and holding all come out of your pocket before the sale. The loan-to-cost figure only covers part of it.
What margin should I want?
The old rule is to pay no more than 70% of the after-repair value less rehab. Work backwards from that and see what it implies for your purchase price.
Is this a lending decision?
No. It is arithmetic on your inputs, on a demonstration site. A real bridge lender will underwrite the scope of work, the contractor and the exit.
The rest of the bench
Monthly payment
Principal, interest, taxes, insurance, mortgage insurance and HOA — drawn as five separate threads, not folded into one number.
Amortisation
The full schedule, switchable month-wise and year-wise, with a running total and the crossover month called out.
Affordability
Income, debts and cash in, a defensible price out — and a plain statement of which of the three constraints is the one actually holding the number down.
Refinance
Costs divided by monthly saving is the answer most sites give, and it ignores the fact that a new 30-year term restarts the clock. Both numbers are shown here.
Extra payment
A recurring extra, a one-off lump sum, or both — against the interest they remove and the months they take off the end.
Rent vs buy
Both households start with the same cash. Whichever is cheaper in a given month invests the difference; whichever is dearer draws it down. That symmetry is the whole argument.
FHA MIP
The upfront premium, the annual premium, and the part almost every calculator gets wrong: whether it ever comes off.
VA purchase
The VA funding fee changes with the down payment and with whether it is your first use of the entitlement. Exempt borrowers pay none of it.
VA refinance
An IRRRL carries a 0.50% funding fee; a VA cash-out carries 2.15% or 3.30%. Both are shown against a true break-even.
Points
One point is one percent of the loan, paid today, for a lower rate for as long as you keep it. The only question that matters is how long that is.
HELOC
Interest-only while you draw, then a fully amortising payment that can be several times larger. Both are shown, because the second one is the surprise.
DSCR
Debt-service coverage divides the rent the property brings in by what the property costs to carry. Most lenders want 1.20 or better.