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Rehab Contingency Calculator

Size the right contingency buffer for a rehab project based on scope risk. Combines a percentage buffer with a separate line for known-unknowns to keep your margin intact when surprises hit.

$
%
$

items you know you don't yet know

Total rehab budget

$75,000

base + contingency

Total contingency

$10,000

% + known-unknowns

% contingency only

$6,500

Suggested contingency

12%

$7,800 for this scope

Reading the number

Mixed rehab — kitchens, baths, some mechanicals. 10–15% contingency is the safe range.

Contingency is the buffer for the cost overruns you don't yet see. The bigger the project and the older the structure, the more contingency you should reserve. Beginning flippers consistently under-budget contingency and end up with thin or negative margins.

How to Use

  1. Enter the base rehab budget — your line-item estimate before contingency.
  2. Enter the contingency percentage you plan to add (8–20% based on scope).
  3. Enter a known-unknowns dollar amount for items you can predict will surface (electrical updates, roof patching, foundation cracks).
  4. Pick the scope risk level for the suggested contingency benchmark.
  5. Read the total rehab budget that includes the buffer.

Frequently Asked Questions

Why have separate % and known-unknowns lines?

Percentage contingency handles the unknown-unknowns — surprises that don't show up until walls open. Known-unknowns are items you suspect from inspection but haven't fully scoped (often $500–$5,000 each).

What contingency does a typical flipper use?

10% on cosmetic rehabs. 12–15% on mixed mechanicals. 15–25% on heavy structural or 100+ year old homes. Lenders often require minimum 5–10% contingency in the loan budget.

Should I tell the contractor about the contingency?

No — that just becomes the budget. Hold contingency separately and only release it when actual overruns occur or when scope expansion is justified.

What if I don't use the contingency?

It adds to your profit at sale. That's the point — it's insurance against worst case. Most flips spend 50–100% of contingency; a clean project might leave 25%+ unused, which is great.

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