Real Estate

House Flipping Calculator

Calculate your flip profit, ROI, and see if a deal passes the 70% rule before you buy.

Quick Answer

Flip Profit = ARV - Purchase Price - Rehab - Holding Costs - Selling Costs. The 70% rule says max purchase = (ARV x 0.70) - Rehab. A $330K ARV property with $50K rehab should be purchased for no more than $181K.

$
$
$
$

Net Profit

$38,600

ROI

14.6%

Annualized ROI

29.1%

70% Rule Max

$181,000

✗ Over

Cost Breakdown

Purchase Price
$200,000
Rehab Cost
$50,000
Holding Costs (6 mo)
$15,000
Total Invested
$265,000
Selling Costs (8%)
$26,400
Sale Price (ARV)
$330,000
Net Profit
$38,600
Disclaimer: This calculator provides estimates for planning purposes only. Actual flip results depend on market conditions, contractor performance, unforeseen repairs, and timing. Always budget a 10-20% contingency above your estimated rehab costs.

About This Tool

The House Flipping Calculator helps real estate investors analyze potential flip deals before committing capital. Enter your purchase price, renovation budget, expected sale price, and holding costs to instantly see projected profit, ROI, and whether the deal passes the 70% rule.

The 70% Rule Explained

The 70% rule is the most common quick analysis tool for flippers. It states: Maximum Purchase Price = (ARV x 0.70) - Rehab Costs. The 30% margin covers selling costs (8-10%), holding costs, and profit. Deals that pass this test have built-in downside protection.

Holding Costs Add Up Fast

Every month you hold a flip property costs money: mortgage or hard money interest, property taxes, insurance, utilities, and lawn maintenance. A common mistake is underestimating hold time. Budget for 2-3 months longer than your contractor estimates.

ROI vs. Annualized ROI

A 20% ROI on a 6-month flip is dramatically different from 20% on an 18-month flip. Annualized ROI normalizes the return to a 12-month period, making it easier to compare flips of different durations and to compare against other investment options.

Frequently Asked Questions

What is the 70% rule in house flipping?
The 70% rule states you should pay no more than 70% of the After Repair Value (ARV) minus rehab costs. On a home with $330,000 ARV and $50,000 rehab, the maximum purchase price is ($330,000 x 0.70) - $50,000 = $181,000. This rule ensures enough margin for profit and unexpected costs.
What are typical holding costs for a flip?
Holding costs include mortgage/hard money payments, property taxes, insurance, utilities, and HOA fees. They typically run $1,500-$4,000/month depending on the property and financing. A 6-month flip on a $200,000 purchase might cost $15,000-$24,000 in holding costs alone.
What percentage should I budget for selling costs?
Budget 8-10% of the sale price for selling costs: 5-6% for agent commissions, 1-2% for closing costs and transfer taxes, and 1-2% for staging, photography, and concessions. Some flippers save on commissions by using flat-fee listings.
How much profit should a house flip make?
Experienced flippers target a minimum net profit of $25,000-$50,000 per flip, or 10-20% ROI on total investment. The actual target depends on the deal size, risk level, and time involved. Smaller flips need higher percentage returns to be worth the effort.
What are the biggest risks in house flipping?
Rehab cost overruns (budget 10-20% contingency), longer-than-expected timelines, market downturns between purchase and sale, hidden structural issues, and permitting delays. Each extra month of holding time directly reduces profit.

You might also like

Real Estate

Rental Yield Calculator

Calculate gross and net rental yield on investment properties.

⏱ 1 minReal Estate

NOI Calculator

Calculate net operating income for commercial or rental properties.

⏱ 2 minReal Estate

Rental Property ROI Calculator

Calculate cash flow, cash-on-cash return, and cap rate for rentals.

⏱ 3 min