How to Use This Calculator
Enter your deal numbers in each field above and click Calculate Flip Profit. The calculator instantly shows your estimated net profit, return on investment, and whether the deal passes the 70% rule.
- Purchase Price — The price you are paying (or planning to offer) for the property.
- Repair / Rehab Cost — Your total estimated renovation budget. Include all materials, labor, permits, and add a 10–15% contingency for unexpected costs.
- After Repair Value (ARV) — The price you expect to sell the property for after all renovations are complete. Base this on recent comparable sales within a 1-mile radius, sold in the past 90 days.
- Purchase Closing Costs — Costs paid at the time of purchase. Typically 1–3% of the purchase price. Includes lender fees, title insurance, prepaid interest, and escrow fees.
- Holding Period — The number of months you expect to own the property before closing the resale.
- Monthly Holding Costs — All ongoing monthly expenses: loan interest (or opportunity cost of cash), property taxes, homeowner’s insurance, utilities, and HOA fees if applicable.
- Agent Commission — Real estate agent commission paid at closing. The US national average is 5–6% of the sale price.
- Selling Closing Costs — Fees paid at the time of resale: title fees, transfer taxes, attorney fees. Typically 1–2%.
How Fix and Flip Profit Is Calculated
Your net profit is the difference between your sale price (ARV) and every dollar you spent getting to that sale:
Net Profit = ARV − (Purchase Price + Repair Costs + Purchase Closing + Holding Costs + Agent Commission + Selling Closing)
Every cost category reduces your profit. The most frequently underestimated category is holding costs. On a typical hard money loan at 12% annual interest, a $150,000 loan costs $1,500 per month in interest alone. A 6-month hold adds $9,000 in interest before you have sold anything.
Return on Investment (ROI)
ROI measures how efficiently your capital is working on this deal:
ROI (%) = (Net Profit ÷ Total Capital Invested) × 100
Total Capital Invested = Purchase Price + Repair Costs + Purchase Closing Costs
Most experienced flippers require a minimum 15–20% ROI before committing to a deal. Annualized ROI — which adjusts for the length of the hold — is the more useful metric when comparing multiple deals with different timelines.
Annualized ROI (%) = (ROI ÷ Holding Months) × 12
The 70% Rule Explained
The 70% rule is the most widely used deal-screening benchmark in house flipping. It gives you a quick maximum purchase price before running a full analysis.
Maximum Allowable Offer (MAO) = (ARV × 70%) − Repair Costs
Example: ARV = $250,000, Repair Costs = $40,000
- MAO = ($250,000 × 0.70) − $40,000
- MAO = $175,000 − $40,000 = $135,000
You should not pay more than $135,000 for this property. The 30% buffer ($75,000) covers all selling costs, holding costs, and your profit margin.
The 70% rule is a quick filter, not a final decision tool. Always verify with a full cost calculation using the calculator above before making any offer.
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Frequently Asked Questions
What is a good profit on a house flip?
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Most experienced investors target a minimum net profit of $20,000–$30,000 per flip, or a minimum ROI of 15–20%. The right number depends on your market, the size of the project, and your risk tolerance. A deal in a high-cost market may need $60,000+ net profit to justify the risk, while a lower-cost market deal at $18,000 profit can still be a smart investment if the ROI is strong.
How accurate is this fix and flip calculator?
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The calculator uses standard real estate investment formulas and is mathematically precise. The accuracy of your results depends entirely on the quality of your inputs. The most critical input is your ARV estimate — an overstated ARV is the single most common reason new flippers lose money. Always base your ARV on at least 3 sold comparable properties within a 1-mile radius, sold within the past 90 days, with similar square footage and condition.
What are typical holding costs for a flip?
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Holding costs vary by property and financing type, but a reasonable estimate for a typical single-family flip is $1,000–$2,500 per month. This includes: hard money or private money loan interest (often the largest component), property taxes (prorated monthly), homeowner’s insurance, and utilities (electric, gas, water during renovation). On a $150,000 hard money loan at 12% annual interest, interest alone is $1,500/month.
Does the 70% rule always apply?
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The 70% rule is a screening guideline, not an absolute law. In high-cost, low-inventory markets (parts of California, New York, or major metros), investors sometimes use 75–80% because margins are structurally tighter. In lower-cost markets with higher rehab requirements, experienced investors often use 60–65% for a larger safety buffer. The rule is most useful as a quick first filter. Always run full numbers — use this calculator before making any offer.
What is ARV in real estate?
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ARV stands for After Repair Value — the estimated market value of a property once all planned renovations are complete. It is determined by analyzing comparable sales (called “comps”) — similar properties in the same neighborhood that have recently sold. A reliable ARV estimate uses at least 3 comps within a 1-mile radius, sold within the past 90 days, with similar square footage, bedroom/bathroom count, and finish level.
What is the average profit on a house flip?
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According to real estate data from ATTOM, average gross profits on US house flips have historically ranged between $55,000–$75,000, with gross ROI around 22–30% before all costs are deducted. After accounting for all expenses, typical net profit for a well-executed flip is $20,000–$40,000. First-time flippers often experience lower results due to cost overruns, extended holding periods, and ARV miscalculations.
How long does a typical house flip take?
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Most house flips take between 3 and 9 months from acquisition to closing the resale. Light cosmetic renovations (paint, flooring, fixtures, landscaping) can be completed in 4–8 weeks. Full gut renovations involving structural work, plumbing, or electrical typically take 4–6 months of construction. Add 30–60 days for listing, offers, and closing, and a realistic average timeline is 5–7 months for a moderately complex project.