How to Use the Real Estate Auction Profitability Calculator
Buying property at auction can yield significant returns — if the numbers work. The key is knowing your all-in cost (bid + closing + repairs + other) and comparing it to the after repair value (ARV) or rental income potential.
Enter your estimated bid price, closing cost percentage, repair costs, and ARV. The calculator shows your total cost, expected profit, and ROI instantly.
The 70% Rule
A common guideline: your maximum bid = ARV × 70% − Repair costs. This leaves enough margin for profit after all costs. Use this calculator to test different bid scenarios.
Tip
Don't forget holding costs (property taxes, insurance, utilities) if you plan to hold or renovate before selling. These can add 1–3% of the purchase price per month.
Frequently Asked Questions
A successful flip typically targets 15–25% ROI after all costs. Higher ROIs are possible in undervalued markets but require accurate repair cost estimates and strong ARV research.
You typically can't inspect the interior before bidding. Hidden repairs, title issues, liens, and eviction costs for occupants are common risks. Always research title history and visit the property exterior before bidding.
Most foreclosure auctions require immediate payment or a deposit. Some may allow a few days to arrange financing. Hard money loans are common for auction purchases but add to your cost.