House Flipping Calculator
Check whether a flip makes money before you buy. Enter the purchase price, rehab budget, holding and financing costs, selling costs and after-repair value to see your profit, ROI on cash and total cost, the 70% rule maximum offer and what happens if things go wrong.
Expected sale price after renovation (from comparable sales).
Property tax, insurance, utilities, HOA.
0 for an all-cash purchase.
Interest-only, as with most hard-money loans.
Transfer taxes, title, escrow, concessions.
How to use the House Flipping Calculator
- Enter the purchase price and ARV, the expected sale price after repairs.
- Add the rehab budget and a contingency of 10–20%.
- Enter holding costs and months, plus your loan terms (or 0% loan for cash).
- Set selling costs such as agent commissions and closing costs.
- Press Calculate profit and check the what-if tables before making an offer.
House flipping formulas
- Total cost = purchase + buying closing costs + rehab (+ contingency) + holding costs + interest + loan points + selling costs
- Profit = ARV − total cost
- ROI on cash = profit ÷ cash invested × 100
- 70% rule maximum offer = ARV × 0.70 − repair costs
- Interest (interest-only loan) = loan × annual rate ÷ 12 × months
Worked example
| Item | Amount |
|---|---|
| Purchase price | $200,000 |
| Buying closing costs (2%) | $4,000 |
| Rehab $45,000 + 10% contingency | $49,500 |
| Holding costs ($1,200 × 6 months) | $7,200 |
| Interest on $160,000 at 11% for 6 months | $8,800 |
| Loan points (2%) | $3,200 |
| Selling costs (6.5% of $320,000) | $20,800 |
| Total cost | $293,500 |
| Profit at $320,000 ARV | $26,500 |
Cash invested is $40,000 down + $4,000 + $49,500 + $7,200 + $8,800 + $3,200 = $112,700, so ROI on cash ≈ 23.5%. The 70% rule maximum offer would be $320,000 × 0.70 − $49,500 = $174,500, below the $200,000 price, a sign the margin is thin.
Frequently asked questions
How do you calculate profit on a house flip?
Profit = after-repair value − (purchase price + buying costs + rehab + holding costs + loan interest and points + selling costs). Selling costs alone are often 6–8% of the sale price, so they matter.
What is the 70% rule in house flipping?
The 70% rule says you should pay no more than 70% of the after-repair value minus the repair costs. For a 320,000 ARV and 49,500 of repairs, the maximum offer is 320,000 × 0.70 − 49,500 = 174,500. The remaining 30% is meant to cover costs and profit.
What is ARV?
ARV (after-repair value) is the estimated market value of the property once the renovation is finished, usually based on recent sales of similar renovated homes nearby.
How is ROI calculated for a flip?
ROI on cash = profit ÷ the cash you put in (down payment, closing costs, rehab, holding costs, interest and points). With a loan, ROI on cash is higher than ROI on total cost because you invest less of your own money.
What is a good ROI for a house flip?
Many investors look for at least 10–20% of the sale price as profit or a 15–25% return on the total investment, but targets depend on market, risk and how long the flip takes.
What costs do new flippers forget?
Common misses are holding costs during delays, loan points, permits, staging, seller concessions, transfer taxes and rehab overruns. A 10–20% contingency and the what-if tables help show the risk.
Does the profit include taxes?
No. Income or capital gains taxes on flips depend on your country and situation and are not included. Ask a tax professional.