House Flipping Calculator
Calculate profit, ROI, and break-even price on a house flip including all purchase, renovation, and selling costs.
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How to use this calculator
- 1
Enter the purchase price and estimated renovation cost.
- 2
Set your monthly holding costs and how many months you expect to hold the property.
- 3
Enter the expected after-repair value (ARV) as the selling price.
- 4
Add agent commission and closing cost percentages to see your net profit and ROI.
Frequently asked questions
What is the 70% rule in house flipping?
The 70% rule states that you should pay no more than 70% of the after-repair value (ARV) minus repair costs for a flip. If a home's ARV is $300,000 and repairs are $50,000, the maximum purchase price is $300,000 × 70% − $50,000 = $160,000. This rule helps ensure enough profit margin after all costs.
What are typical holding costs?
Holding costs include mortgage interest (often from a hard money loan at 10–14% interest), property taxes, insurance, utilities, and HOA fees if applicable. Hard money loans used for flips typically add $1,500–$3,000 per month on a $200,000 loan.
How do I estimate after-repair value (ARV)?
ARV is estimated by looking at recent comparable sales (comps) of similar renovated homes in the same neighbourhood. Work with a local real estate agent or appraiser to pull comps within 0.5 miles and 90 days of similar size, age, and condition after renovation.
House Flipping Profit Calculator
Why flippers underestimate costs
The most common mistake in house flipping is underestimating renovation costs. New flippers often budget for materials but forget labour, permits, carrying costs during renovation, and scope creep. Adding a 15–20% renovation contingency to your budget is standard practice. This calculator captures holding costs as a separate line item because time is literally money — each extra month reduces your annualised ROI significantly.
Understanding annualised ROI
A 25% ROI sounds impressive, but context matters. If that 25% was earned over 12 months, your annualised return is 25%. But if it took 18 months, your annualised ROI drops to ~17%. Comparing flips on an annualised basis lets you evaluate whether the capital could have earned more in other investments over the same period.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →