Rehab cost calculator: a budget built from your bids
Enter each line of the scope of work, add a contingency and permits, and get the all-in rehab number for the loan application, the average draw and how much the flip loan funds.
Budget is completeEvery line has a number and there is a real contingency.
Rehab budget, all in
$72,360
What to put on the loan application as the rehab budget.
- Hard costs
- $63,000
- Contingency
- $7,560
- Average draw
- $18,090
- Funded at 100% of rehab (our program)
- $72,360
- Biggest line
- Kitchen: 30%
Rehab money is paid in draws after an inspector confirms the work, so you front each stage before it is reimbursed. Plan cash for at least the first draw.
The method
- Hard costs = the sum of every line you enter.
- Contingency = hard costs × your contingency percentage.
- All-in budget = hard costs + contingency + permits and plans.
- Average draw = all-in budget / number of draws. Funded = all-in budget × the program's rehab share (100%).
The example amounts are placeholders to show how the sheet works, not typical costs for your market. Replace each with a contractor's bid.
Next
Check the house will be worth it with the ARV calculator, then run the whole flip in the fix and flip calculator. To see how much of the rehab each lender funds, see flip loan limits by lender.
Questions people ask
How much contingency should a rehab budget carry?
Ten to twenty percent of hard costs is the usual range. Use the high end on older homes, on anything touching the roof, foundation, plumbing or electrical, and on your first few projects. The example carries 12% on $63,000 of hard costs: $7,560.
Why not use a cost per square foot?
Because two houses of the same size can need $20,000 or $120,000 of work. Lenders ask for a line-item scope of work, and the inspector releases draws against it. A per-square-foot figure is a sanity check after you have bids, not a budget.
How do rehab draws work?
The lender holds the rehab money and releases it in stages after an inspector confirms each stage is done. You pay the contractor first and are reimbursed. Our flip program funds 100% of the rehab budget in draws; in the example, four draws average $18,090.
What goes on the loan application as the rehab budget?
The all-in number: hard costs, contingency and permits. In the example that is $72,360. Leaving the contingency out makes the loan smaller than the job.
Numbers look right?
Send the deal. We check it against the lender's terms and come back with a loan.