House Flipping Profit Calculator
Created by: Ethan Brooks
Last updated:
Enter purchase price, renovation budget, ARV, holding period, and selling costs to see total all-in cost, net profit, ROI, annualized return, and the minimum ARV needed to break even.
House Flipping Profit Calculator
FinanceModel total all-in cost, net profit, simple ROI, and annualized return for a fix-and-flip deal — including the 70% rule max offer.
Financing, taxes, insurance, utilities
Agent commission + closing costs — typically 7–9%
What Is a House Flip Profit Calculator?
A house flip profit calculator helps real estate investors quickly determine whether a fix-and-flip deal is financially viable.
By combining the purchase price, renovation budget, carrying costs, selling costs, and after repair value (ARV), it shows the true all-in cost and expected net profit before you make an offer.
The 70% rule is a popular flipper heuristic — do not pay more than 70% of ARV minus renovation.
But it is a starting point, not a complete analysis.
This calculator goes further by modeling carrying costs by holding period and selling costs as a percentage of the sale price, producing both simple ROI and annualized ROI for full investment comparison.
How Flip Profit Is Calculated
All-in cost adds purchase price, renovation, total carrying costs, and selling costs.
Net profit is ARV minus all-in cost.
ROI divides net profit by total invested capital (purchase + renovation + carrying costs, excluding selling costs since those come from proceeds).
Annualized ROI compounds simple ROI to a 12-month equivalent for period-to-period comparison.
House Flipping Formulas
Carrying costs = monthly carrying cost × holding months
Selling costs = ARV × selling cost %
Total all-in = purchase + renovation + carrying costs + selling costs
Net profit = ARV − total all-in
ROI = net profit / (purchase + renovation + carrying costs) × 100
Annualized ROI = (1 + ROI/100)^(12/months) − 1
Min ARV to break even = (purchase + renovation + carrying) / (1 − selling cost %)
70% rule max offer = ARV × 70% − renovation cost
Example Scenarios
Classic Fix-and-Flip in a Suburban Market
Purchase: $175,000. Renovation: $45,000. Holding: 5 months. Monthly carrying: $2,200 (financing + taxes + insurance). Selling costs: 8% of ARV. ARV: $295,000. Carrying total: $11,000. Selling costs: $23,600. Total all-in: $254,600. Net profit: $40,400. ROI: 17.4%. Annualized ROI: 44.8%. Min ARV to break even: $250,000. Deal passes the 70% rule: max offer at 70% = ($295K × 0.70) − $45K = $161,500 — purchased under this threshold with room.
Marginal Deal with a Long Hold
Purchase: $240,000. Renovation: $60,000. Holding: 9 months at $3,000/month. Selling costs: 8%. ARV: $345,000. Carrying: $27,000. Selling: $27,600. All-in: $354,600. Net profit: −$9,600. The deal loses money at this ARV. Min ARV to break even: $354,022. The flipper needs a higher sale price, lower renovation cost, or shorter hold. Annualized ROI analysis shows clearly why extended holds kill margins.
How People Use This Calculator
- Real estate investors evaluating whether a potential flip meets their minimum return threshold before making an offer.
- Wholesalers calculating the max allowable offer (MAO) based on ARV and renovation estimates.
- Lenders reviewing loan-to-cost and projected returns before funding a hard money loan.
- Flippers comparing multiple deals side-by-side to allocate limited capital to the best opportunity.
- Anyone applying the 70% rule who wants to check whether carrying and selling costs are properly baked in.
Tips for Accurate Flip Analysis
Overestimate renovation costs by 10–20% for a contingency buffer.
Unexpected structural issues, permit delays, and material price swings are common.
A renovation budget that is exactly right leaves no room for error — one bad surprise can eliminate your profit entirely.
The contingency should be a line item, not a mental note.
Model the deal at your realistic ARV, not the optimistic one.
Run the numbers at ARV minus 5% to see if the deal still works.
Markets can shift during a hold period, and appraisals sometimes come in below the expected sale price.
A flip that only pencils at the top-dollar ARV is a speculative bet, not an investment.
Frequently Asked Questions
What is the 70% rule in house flipping?
The 70% rule says a flipper should pay no more than 70% of the after repair value (ARV) minus the estimated renovation cost. Formula: max offer = (ARV × 0.70) − renovation cost. It is designed to leave enough room for carrying costs, selling costs, and profit margin. For example, if the ARV is $300,000 and renovation is $40,000, the max offer is ($300,000 × 0.70) − $40,000 = $170,000.
What carrying costs should I include in a flip?
Typical monthly carrying costs include: hard money or conventional loan interest (often 8–15% annualized on the loan amount), property taxes prorated monthly, hazard insurance, utilities (electricity, water, gas), and any HOA dues. On a $200,000 loan at 12% annualized interest, financing alone costs $2,000/month. A 6-month hold adds $12,000 in interest before renovation costs are even considered.
What selling costs should I budget for?
Selling costs typically include: real estate agent commissions (5–6% combined buyer/seller), transfer taxes (0.1–2% depending on state), title insurance and closing costs (1–2%), and staging costs if applicable. In most markets, budget 7–9% of the sale price for all selling-side costs. This calculator uses a single percentage you set — the default of 8% is a common estimate for a fully brokered sale.
What is the difference between gross profit and net profit in flipping?
Gross profit is ARV minus purchase price, renovation, and carrying costs — before selling costs. Net profit subtracts selling costs from gross profit. Net profit is what matters for investment decisions. A flip that nets $60,000 gross but costs $24,000 to sell only nets $36,000, changing the ROI picture significantly. Always model net profit, not gross.
How is annualized ROI calculated for a flip?
Annualized ROI adjusts the total ROI for the holding period so you can compare flips of different durations. If you net $30,000 on a $170,000 total investment (17.6% simple ROI) in 6 months, the annualized ROI is (1 + 0.176)^(12/6) − 1 = 38.5%. This lets you compare whether flipping beats holding rental property or another investment over the same time horizon.
What ARV is needed to break even on a flip?
The minimum ARV to break even is the purchase price plus renovation plus carrying costs, all divided by (1 minus the selling cost percentage). For example, with $150,000 purchase, $40,000 renovation, $10,000 carrying costs, and 8% selling costs: min ARV = $200,000 / (1 − 0.08) = $217,391. Anything below that and you lose money. This calculator shows this figure so you can stress-test your ARV assumption.
Sources and References
- National Association of Realtors (NAR). Investment Property Buyer Survey, 2023.
- ATTOM Data Solutions. U.S. Home Flipping Report, Q4 2023.
- BiggerPockets. The Ultimate Guide to House Flipping. biggerpockets.com.