House Flip Profit Calculator
Gross profit · Net profit · ROI · 70% rule
Estimated sale price post-renovation
Mortgage, utilities, insurance
Title, inspection, origination
Agent commission + closing
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Gross Profit
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Net Profit
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ROI
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70% Rule
About This Calculator
The House Flip Profit Calculator analyzes fix-and-flip deals by calculating true profitability after all purchase, renovation, holding, and selling costs.
The 70% Rule is the most widely used screening tool in house flipping: Maximum Purchase Price = (ARV × 70%) - Renovation Costs. This leaves a 30% buffer for closing costs, carrying costs, and profit. Never violate the 70% rule without strong justification.
Common mistakes that kill flip profits: underestimating renovation costs (always add 15–20% contingency), overestimating ARV (be conservative), and underestimating holding time (budget for 2x your expected timeline).
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Frequently Asked Questions
What is the 70% rule in house flipping?▼
The 70% rule states: maximum purchase price = (After Repair Value × 70%) - Renovation Costs. Example: $300K ARV × 70% = $210K - $40K reno = $170K max buy. The 30% buffer covers: closing costs (~2%), holding costs (~5%), selling costs (~7%), and profit (~16%).
How much profit should you make on a house flip?▼
Most experienced flippers target $25,000–$50,000 minimum net profit per deal, or at least 15–20% ROI. Below $20,000 net profit, the risk/reward ratio becomes unfavorable given the time, effort, and capital required.
What are carrying costs in house flipping?▼
Carrying costs (or holding costs) include: hard money loan interest or mortgage payment, property taxes (prorated), utilities, insurance, and HOA fees. On a $200,000 flip with $1,500/mo carrying costs, a 4-month flip costs $6,000 in carry — plan for this.
What is ARV and how do I estimate it?▼
After Repair Value (ARV) is the estimated market value of the property after all renovations are complete. Estimate ARV by analyzing recent comparable sales (comps) in the same neighborhood — similar size, age, condition, and features. Be conservative — overestimating ARV is the #1 mistake new flippers make.
Is house flipping still profitable today?▼
Yes, but margins are tighter than in 2018–2021. Higher interest rates increase carrying costs, and construction costs have risen. Profitable flippers today focus on: buying well below market, keeping renos tight and on-budget, fast execution to minimize holding time, and strong local market knowledge.
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