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House Flipping Profit Calculator
Model a fix-and-flip deal end to end. Combine purchase, rehab, financing, and holding costs against the projected after-repair value to see projected profit, cash-on-cash return, and whether the purchase price clears the 70% rule.
Acquisition and rehab
Sale assumptions
Financing and holding
Projected profit
$50,871
13.2% of ARV
Cash-on-cash return
96.2%
Annualized: 192.5%
Cash invested
$52,865
Net sale proceeds
$357,125
Deal check
Margin is in the acceptable range. Confirm rehab scope and comps before committing capital.
Purchase price is above the 70% rule max allowable offer of $214,500. Tighten the offer or verify ARV before writing.
70% rule max offer
$214,500
70% × ARV − rehab
Total project cost
$306,254
Total selling costs
$27,875
Total holding cost
$15,939
$2,107/mo debt
Loan points paid up front
$4,815
Total loan balance
$240,750
Holding cost treats the flip loan as interest-only, which matches most hard money and fix-and-flip products. Increase the hold time or rehab budget by 10–20% on first flips or heavier scopes — running overschedule is the most common profit killer.
EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.
Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.
Learn more about our review process on the EveryCalc methodology page.
Calculation notes and example
Flip profit and return formulas used here
Net sale proceeds equal ARV minus agent commission, seller concessions, and entered sell-side closing costs. Total project cost equals purchase price plus buy-side closing costs, rehab, loan points, financing interest, and other holding costs. Projected profit is net sale proceeds minus total project cost. Cash invested includes down payment, buy-side closing costs, the unfinanced rehab portion, points, and other holding costs. Cash-on-cash return divides projected profit by that cash invested, while annualized return compounds the modeled holding-period return to one year. The 70% maximum-offer figure is shown only as a screening heuristic.
Purchase-to-resale example
Suppose a property costs $220,000, rehab is $55,000, and projected ARV is $365,000. If buy costs, points, financing carry, other holding costs, commission, concessions, and sell costs total $56,000, modeled profit is about $34,000. Extending a six-month plan to nine months adds three months of interest and property carry, so both profit and annualized return fall even if ARV does not change.
Where flip projections usually break
- Use closed, adjusted comparable sales for ARV and run a lower-sale-price case; an asking price is not a realized exit.
- Separate financing interest from taxes, insurance, utilities, security, lawn care, permits, and extension fees so hold-time risk is visible.
- The calculator excludes income and self-employment taxes and cannot decide whether a project is investment property or dealer inventory.
Useful companion tools: ARV Calculator, Rehab Budget Calculator, Closing Cost Calculator, and Cash-on-Cash Return Calculator.
How to interpret the house flipping profit result
Best use
Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.
Cross-check
Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.
Watch for
Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.
This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.
Before relying on this house flipping profit estimate
Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.
Confirm source numbers
Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.
Separate cash flow from total cost
A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.
Run conservative cases
Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.
Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.
Sources used for this calculator
These primary or official references help define the rules, terminology, safety checks, or source documents behind this estimate. Source links were checked in July 2026. They do not turn the calculator output into a quote, appraisal, tax determination, or professional opinion.
- Why can home valuations differ?
Consumer Financial Protection Bureau
Explains comparable sales, property adjustments, appraisals, broker opinions, and automated valuations.
- Publication 527: Residential Rental Property
Internal Revenue Service
Primary federal reference for rental income, operating expenses, depreciation, and reporting; calculator cash flow is not taxable income.
How to Use
- Enter the purchase price, buy-side closing costs, and rehab budget for the project.
- Enter the after-repair value, agent commission, and sell-side closing costs — these drive net sale proceeds.
- Set financing terms: down payment, rehab financed, interest rate, points, and hold time in months.
- Include other monthly carrying costs like property tax, insurance, and utilities while the property is vacant.
- Review projected profit, annualized return, and the 70% rule max offer before writing an offer.
Frequently Asked Questions
What is the 70% rule in house flipping?
The 70% rule is a fast screening formula: max offer equals 70% of ARV minus rehab budget. It bakes in a 30% cushion for financing, holding, selling costs, and profit. Experienced flippers in competitive markets sometimes go up to 75%, while cautious investors use 65%.
How do I estimate holding costs?
Holding costs include monthly debt service (loan interest), property tax, insurance, utilities, and HOA. This calculator assumes interest-only financing which matches most hard money and fix-and-flip loans. Multiply by the number of months you expect to own the property.
What profit margin should I target on a flip?
Most investors target at least 10% of ARV in projected profit. Below 8% leaves no room for rehab overruns or ARV dips. For smaller deals under $200k ARV, target at least $25–$35k of profit in absolute dollars to cover the effort and risk.
Does this include capital gains tax?
No. Flip profits held under a year are taxed as ordinary income. Consult a tax professional — pass-through entity structure, self-employment tax, and state rates all affect net take-home.
How do I pressure-test the ARV?
Pull three closed comparable sales within the last 90 days in the same neighborhood, similar square footage, and similar bed/bath count. Use the median price per square foot and apply it to the subject property's post-rehab square footage. Our ARV calculator automates this.
Related Calculators
ARV Calculator
Back into after-repair value from comps and confirm the 70% rule max allowable offer.
Rehab Budget Calculator
Build a trade-by-trade rehab estimate and feed the total into this flip model.
Seller Net Sheet Calculator
Estimate net proceeds from the sale side with detailed line items for commission and closing.
Closing Cost Calculator
Model the buy-side cash to close on the acquisition before writing an offer.
Cash-on-Cash Return Calculator
If the plan shifts to BRRRR and refinance instead of flip, check the leveraged return as a rental.
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