About the House Flipping Calculator
This house flipping calculator adds up every cost of a fix-and-flip — the purchase price, buyer closing costs, renovation budget, monthly holding costs, hard-money interest and points, and the agent commission and closing costs when you sell — and subtracts them from the after-repair value (ARV). The result is your projected profit, the cash you actually need to bring, and your return on that cash.
It is built for new and experienced flippers screening deals, wholesalers checking whether a contract works for an end buyer, and lenders sanity-checking a borrower’s budget. The 70% rule output shows the maximum purchase price a typical investor would pay, so you can see at a glance whether the asking price leaves room for profit.
Financing is modelled as an interest-only loan on a percentage of the purchase price, which is how most hard-money and private lenders structure flip loans; set the loan percentage to 0 for an all-cash deal. Holding costs should include property tax, insurance, utilities and any HOA dues for each month you own the house.
With the default inputs, the estimated profit is $20,200.00. Change any value above to recalculate instantly.
How to use the house flipping calculator
- 1Enter the purchase price and your buyer closing costs.
- 2Add the renovation budget, including a contingency.
- 3Enter the after-repair value from recent sold comparables.
- 4Set how many months you will hold the property and the monthly holding costs.
- 5Enter your loan percentage, interest rate and points (0% loan for cash).
- 6Check profit, cash needed and whether the price fits the 70% rule.
Formula and method
Profit is the after-repair value minus every cost of the project. Holding costs are the monthly carrying cost multiplied by the number of months. The loan is treated as interest-only, so interest equals loan × annual rate ÷ 12 × months, and points are a one-time percentage of the loan. Selling costs are a percentage of the ARV.
Return on investment divides profit by the cash you actually put in — everything except what the lender funds — because leverage is what makes flips attractive. The annualized figure simply scales that return to 12 months (ROI × 12 ÷ months) so short and long projects can be compared; it does not compound. The 70% rule is a quick screening guideline, not a law: it caps the purchase price at 70% of ARV minus repairs to leave room for costs and profit.
- ARV
- After-repair value — expected sale price
- Holding
- Monthly holding costs × months held
- Interest
- Loan × rate ÷ 12 × months (interest-only)
- Loan
- Purchase price × loan percentage
Worked examples
Hard-money flip: $200k buy, $40k rehab, $310k ARV
An 80% loan ($160,000) at 11% interest-only for 6 months costs $8,800 in interest plus $3,200 in points. Adding $4,000 closing, $40,000 rehab, $9,000 holding and $24,800 selling costs gives a $289,800 total cost and a $20,200 profit. You need $105,000 of your own cash, a 19.2% return in six months.
Same deal paid in cash
Without a loan there is no interest or points, so profit rises to $32,200. But you tie up $253,000 of cash, so the return on cash falls to about 12.7% — leverage raises ROI even while lowering dollar profit.
Overpaying: $240k buy, $50k rehab, 8 months
Paying $240,000 when the 70% rule caps the offer at $174,000 leaves no room. Eight months of holding ($12,000), $17,920 of financing and $25,600 of selling costs push total cost to $350,320 against a $320,000 sale — a $30,320 loss.
Frequently asked questions
What is the 70% rule in house flipping?+
The 70% rule says to pay no more than 70% of the after-repair value minus repair costs. For a $300,000 ARV and $40,000 of repairs, the maximum offer is $300,000 × 0.70 − $40,000 = $170,000. The 30% cushion covers closing, holding, selling costs and profit.
How much profit should a house flip make?+
Many flippers aim for a net profit of at least 10%–20% of the sale price, or a minimum dollar amount such as $25,000–$30,000, so that a cost overrun or a slower sale does not wipe out the return.
What costs do beginners forget on a flip?+
Commonly missed costs are buyer and seller closing costs, loan points, months of property tax and insurance while the house sits, utilities during the rehab, permits, staging, and seller concessions to the buyer. Selling costs alone often run 6%–10% of the sale price.
How are flip profits taxed in the US?+
Properties held for a year or less produce short-term gains taxed at ordinary income rates, and frequent flippers may be treated as dealers subject to self-employment tax. Talk to a tax professional before assuming capital-gains treatment.
How do hard-money loans work for flips?+
Hard-money lenders usually lend a percentage of the purchase price (and sometimes the rehab) on a short, interest-only loan, typically 6–18 months, charging higher rates plus upfront points. The loan is repaid in full when the house sells.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.