House Flipping Profit Calculator
Analyze a house flip deal before you commit. Enter purchase price, renovation costs, after-repair value, and holding costs to see your projected profit, ROI, and profit margin.
How House Flipping Profit Works
House flipping profit is the difference between the after-repair value and all costs invested in the property. Total costs include the purchase price, renovation and rehab expenses, holding costs during the flip period, and selling costs like agent commissions and closing fees. Successful flippers use the 70% rule as a quick guideline: never pay more than 70% of the ARV minus repair costs. This calculator gives you a detailed breakdown so you can evaluate whether a flip deal is worth pursuing before committing capital.
Understanding the 70% Rule
The 70% rule states that you should pay no more than 70% of the after-repair value minus estimated repair costs. For example, if a home's ARV is $300,000 and repairs cost $50,000, the maximum purchase price should be $300,000 times 0.70 minus $50,000, which equals $160,000. This leaves a margin for holding costs, selling costs, and profit. The rule is a quick screening tool, not a precise calculator. Always run detailed numbers for deals that pass the initial screening.
Tips for Profitable House Flips
Get accurate repair estimates before buying by walking the property with a contractor. Budget 10-20% over estimates for unexpected issues. Minimize holding time to reduce carrying costs like loan interest, insurance, and property taxes. Know your local market and comparable sales to set a realistic ARV. Build relationships with reliable contractors who deliver on time and budget. Focus on cosmetic renovations with the highest return, such as kitchens, bathrooms, flooring, and paint. Avoid structural projects unless the discount compensates for the risk. Track every expense meticulously to understand your true profit on each deal.