House Flipping Profit Calculator
Estimate your potential profit on a house flip by comparing your purchase price, rehab budget, financing costs, and holding costs against the after-repair value (ARV).
House Flipping Profit Formula
This calculator totals every cost involved in buying, renovating, holding, and selling a property, then subtracts that total from the after-repair value (ARV) to estimate net profit and return on cash invested.
The '70% rule' is a quick screening tool many flippers use: the maximum purchase price should be no more than 70% of the ARV minus the estimated rehab cost, leaving room for holding costs, selling costs, and profit margin. ROI here is calculated on total cash invested (down payment-equivalent cash, closing costs, points, and holding costs), not the full project basis, so it better reflects leveraged returns when hard money financing is used.
How to Use the House Flipping Profit Calculator
Enter the purchase price and rehab budget
Input what you expect to pay for the property and your total estimated renovation budget.
Enter the after-repair value (ARV)
Estimate the expected resale price once renovations are complete, based on comparable sales in the area.
Choose your financing type
Select cash purchase or hard money financing, and enter the loan-to-cost percentage, interest rate, and points if financed.
Enter holding period and costs
Add the expected number of months to complete and sell the project, plus monthly holding costs like utilities, insurance, and taxes.
Enter closing and selling cost percentages
Add your estimated purchase closing costs and selling costs (agent commissions, etc.) as percentages.
Click Calculate
View your total project cost, net profit, profit margin, ROI, and the maximum offer price under the 70% rule.
Real-World Scenario Example
"An investor buys a distressed property for $220,000, budgets $50,000 for rehab, and expects to sell it for an ARV of $360,000 after a 6-month hold financed with hard money."
Inputs
Result
After roughly $52,800 in total holding, financing, and selling costs, the project nets about $33,000 in profit — a profit margin near 9% of ARV and a strong ROI on the relatively small amount of cash invested.
Important Disclaimer
This calculator provides estimates for educational and planning purposes only. Actual renovation costs, resale values, financing terms, and selling costs vary significantly by market and project. Consult a licensed contractor, real estate agent, and lender before making investment decisions.
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