Finance category

Mortgage, loan, investing, tax, and money calculators.

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

Purchase price

Closing costs (buy side)

Rehab budget

Sale assumptions

After-repair value (ARV)

Agent commission

Seller concessions to buyer

Closing costs (sell side)

Financing and holding

Down payment

Rehab financed

Interest rate

Loan points

Hold time

months

Other monthly carrying

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.

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.