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House Flipping Profit Calculator

Calculate house flipping profit after purchase, renovation, holding, and selling costs. Free house flipping profit calculator for real estate investors and.

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Inputs that matter
Purchase Price, Renovation Cost, After Repair Value (ARV), Holding Costs, and 1 more
Output to expect
House Flipping Profit Calculator
  • Check the units and required inputs before comparing results.
  • Keep the assumptions with a copied result so you can reproduce the calculation later.
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Reference & details

How it works

Net Flip Profit Formula

Net profit equals the after-repair value minus all costs incurred from purchase through sale. Include every line item — missing holding costs or selling commissions is the most common reason flips underperform projections.

Net Profit = ARV − (Purchase Price + Rehab + Holding Costs + Selling Costs + Closing Costs)

The 70% Rule

Experienced flippers limit maximum offer to 70% of ARV minus estimated rehab costs. This built-in margin covers holding costs, selling fees, and unexpected overruns while targeting 15–20% ROI.

Max Offer = (ARV × 0.70) − Rehab Budget

Return on Investment

Flip ROI is net profit divided by total cash invested (down payment, rehab, and holding costs). Lenders and private money partners typically expect 15–25% ROI on a 4–6 month hold.

ROI = Net Profit / Total Cash Invested × 100

Updated: July 2026

Example Scenarios

3-bed ranch purchased below market, moderate cosmetic rehab, 5-month hold.

Purchase Price: $185,000Rehab Budget: $45,000ARV: $295,000Holding Costs (5 mo): $8,500Selling Costs (6%): $17,700

→ Net profit: ~$38,800 | ROI: ~17%

Distressed property requiring structural and systems work with extended 8-month timeline.

Purchase Price: $120,000Rehab Budget: $110,000ARV: $310,000Holding Costs (8 mo): $18,000Selling Costs (6%): $18,600

→ Net profit: ~$43,400 | ROI: ~19% on $225K cash invested

Investor overpaid relative to ARV, demonstrating why the 70% rule matters.

Purchase Price: $220,000Rehab Budget: $35,000ARV: $295,000Holding Costs (4 mo): $7,200Selling Costs (6%): $17,700

→ Net profit: ~$15,100 | ROI: ~6% — likely not worth the risk

Common Mistakes to Avoid

Underestimating rehab costs by 20–30%

Add a 15–20% contingency to every rehab budget. Hidden issues behind walls, outdated electrical, and permit delays routinely push budgets over. Track costs weekly against budget.

Forgetting holding costs beyond the mortgage

Include property taxes, insurance, utilities, lawn care, and hard money interest. On a $250K loan at 12% interest, carrying costs alone exceed $2,500/month before any other expenses.

Using optimistic ARV from the highest comp

Base ARV on sold comps within 0.5 miles and 90 days, adjusting for condition and square footage. Overpricing ARV by $20K can turn a profitable flip into a break-even or loss.

FAQ

Most professional flippers target a minimum net profit of $30,000–$50,000 or 15–20% ROI on cash invested, whichever is higher. In competitive markets, some accept 10–12% ROI on faster 3-month turns.

Cosmetic flips take 2–4 months; moderate rehabs 4–6 months; full guts 6–10 months. Always add 30 days buffer for inspection delays, permit approvals, and buyer financing fall-through.

Yes, impute your labor at market contractor rates even if you do the work yourself. This ensures your ROI reflects true economic cost and makes deals comparable to outsourced rehabs.

Hard money typically charges 10–14% interest plus 2–4 points upfront. On a $200K loan held 5 months, interest and points can total $15,000–$20,000 — often the second-largest cost after rehab.

Budget 8–10% of ARV for total disposition: 5–6% agent commission, 1–2% seller closing costs, 1% staging and marketing, plus any buyer concessions negotiated at closing.

About House Flipping Profit Calculator

Model the full profit picture on a fix-and-flip deal by accounting for acquisition, rehab, holding, and disposition costs. Professional flippers use this analysis to enforce the 70% rule and ensure projected returns justify the capital and timeline risk.