House Flipping Calculator
The profit and ROI on a house flip after the purchase, repairs, holding costs, loan interest and selling costs, and the maximum offer by the 70% rule.
Result…
How it's calculated
Interest = amount borrowed × rate ÷ 12 × months held (interest-only) Holding = monthly holding costs × months + interest Selling = ARV × selling % + other selling costs Profit = ARV − (price + buying + repairs + holding + loan fees + selling) ROI = profit ÷ total cost; ROI on cash = profit ÷ (costs before the sale − amount borrowed) Maximum offer = ARV × rule % − repairs
A flip makes money only if the after-repair value (ARV) covers everything: the purchase and its fees, the renovation, the months of tax, insurance and utilities while you hold it, the interest and fees on any loan, and the commission and other costs of selling. This calculator adds them up and gives the profit, the ROI on the total cost and on your own cash, and checks the price against the 70% rule: a common rule of thumb that the most to pay is 70% of the ARV less the repairs. The percentage is yours to change, because costs and margins differ by market. The loan is treated as interest-only, the usual shape of short flip loans; tax on the profit depends on the country and is not taken off.
Your numbers, step by step
About the House Flipping calculator
This house flipping calculator shows whether a buy, renovate and sell project leaves a profit once every cost is counted. Enter the purchase price and buying costs, the repair budget, the after-repair value (ARV), how many months you will hold it and the monthly holding costs, then the loan amount, its interest rate and fees, and the selling costs. It works out the interest for the months held, the total cost, the profit, the ROI on the total cost and on your own cash. It also checks the price against the 70% rule, a common rule of thumb that the most to pay is 70% of the ARV less repairs; you can change the percentage. Every step is shown with your numbers. To compare the return with other investments, use the ROI calculator.
How to use it
- Enter the “Purchase price”, “Buying costs” and “Repair and renovation costs”.
- Enter the “After-repair value (ARV)” from recent sales of similar homes nearby.
- Enter the “Months held” and “Holding costs per month”, then the “Amount borrowed”, “Loan interest rate” and “Loan fees and points”.
- Enter the “Selling costs” % and “Other selling costs”, set the “Rule of thumb for the maximum offer”, and read the profit and maximum offer.
Worked example
A house is bought for 200,000 with 5,000 of buying costs and 40,000 of repairs, and should sell for 320,000. Held for 6 months at 1,200 a month, with 160,000 borrowed at 10% interest-only (8,000), holding costs come to 15,200. Adding 3,200 of loan fees and 21,200 of selling costs (6% plus 2,000), the total cost is 284,600 and the profit 35,400: a 12.44% ROI on total cost, or 34.24% on the 103,400 of cash put in. The 70% rule gives a maximum offer of 320,000 × 70% − 40,000 = 184,000, below the 200,000 paid.
Updated
Questions people ask
How do you calculate profit on a house flip?
Take the after-repair sale price and subtract the purchase price, buying costs, repairs, holding costs, loan interest and fees, and selling costs. What is left is the profit before income tax.
What is the 70% rule in house flipping?
A rule of thumb: pay no more than 70% of the after-repair value minus the cost of repairs. The 30% gap is meant to cover holding, selling and finance costs and leave a profit. It is a quick screen, not a law, so adjust it for your market.
What are holding costs on a flip?
Everything you pay while you own the property: property tax, insurance, utilities, service charges, security and the loan interest. They grow with every month, so a slow renovation or sale eats into the profit.
What mistakes make flips lose money?
An optimistic ARV, a repair budget with no margin, and forgetting the time on the market. Try a lower sale price, higher repairs and a few more months to see how much room the deal really has.
Does this flip estimate include tax?
No. Profit on a quick resale can be taxed as income or as a gain, and the rules depend on the country and how you hold the property. Speak to an accountant or financial adviser before you buy.