House Flipping Calculator
Analyze your flip deal before you buy. Calculate profit, ROI, and check against the 70% rule to make sure the numbers work.
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Estimated Profit
$37,800
ROI: 16.5% · Annualized: 33.0%
Purchase Price: $180,000
Repairs: $40,000
Holding Costs: $9,000
Selling Costs: $23,200
Total Investment
$229,000
Net Sale Proceeds
$266,800
Total Holding Costs
$9,000
Selling Costs
$23,200
70% Rule Analysis
Max purchase price (70% rule): $163,000 — FAIL: Price exceeds 70% rule limit
Advanced
Advanced Analysis
Timeline scenarios (3/6/9 months), ARV sensitivity analysis
How does the hold period affect your profit? Longer holds increase carrying costs and reduce annualized returns.
3-Month Hold
$42,300
Holding costs: $4,500
ROI: 18.8% · Annualized: 75.4%
Total invested: $224,500
6-Month Hold
$37,800
Holding costs: $9,000
ROI: 16.5% · Annualized: 33.0%
Total invested: $229,000
9-Month Hold
$33,300
Holding costs: $13,500
ROI: 14.3% · Annualized: 19.0%
Total invested: $233,500
Pro
Professional Simulator
Full P&L with itemized costs, compare multiple flips side-by-side
Itemized profit and loss statement including financing, permits, and all soft costs.
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Net Profit (Full P&L)
$18,200
After all costs including financing, permits, and soft costs
Purchase Price: $180,000
Repairs & Rehab: $40,000
Holding Costs: $9,000
Financing: $8,000
Acquisition: $3,000
Permits: $2,000
Utilities: $3,600
Staging/Marketing: $3,000
Selling Costs: $23,200
Gross Sale Price
$290,000
Selling Costs
$23,200
8% of sale price
Total All-In Costs
$248,600
Including all soft costs
Net Profit
$18,200
ROI (Full P&L)
7.3%
Profit Margin
6.3%
Net profit as % of sale price
How to Use This House Flipping Calculator
Enter all costs associated with your flip deal to see if the numbers make sense:
- Purchase Price: What you'll pay to acquire the property.
- Repair / Rehab Costs: All renovation costs — materials, labor, permits. Be conservative here; most flippers underestimate.
- Holding Costs / Month: Your ongoing costs while you own it: hard money loan interest, taxes, insurance, utilities. Typically $1,000-$3,000/month.
- Holding Period: Realistic months from purchase to sale. Most flips take 4-8 months when accounting for permits, contractors, and time on market.
- After Repair Value (ARV): What you expect to sell for after renovation. Get real comparables from a local agent — this number drives everything.
- Selling Costs: Agent commissions, closing costs, staging. Budget 7-10% of ARV.
The 70% Rule Explained
Max Purchase Price = (ARV × 0.70) − Repair Costs
Example: ARV = $290,000, Repairs = $40,000
Max Price = ($290,000 × 0.70) − $40,000 = $163,000
Example: ARV = $290,000, Repairs = $40,000
Max Price = ($290,000 × 0.70) − $40,000 = $163,000
The 70% rule is a quick filter used by experienced flippers. It ensures enough margin to cover holding costs, selling costs, and generate a profit. The "30% cushion" absorbs these costs plus your profit. If the deal doesn't pass the 70% rule, you're likely overpaying.
Profit and ROI Formula
Total Investment = Purchase + Repairs + Holding Costs
Net Proceeds = ARV − Selling Costs
Profit = Net Proceeds − Total Investment
ROI = Profit / Total Investment × 100
Net Proceeds = ARV − Selling Costs
Profit = Net Proceeds − Total Investment
ROI = Profit / Total Investment × 100
Example: A Typical House Flip
The Washington Street Flip
| Purchase Price | $180,000 |
| Repair Costs | $40,000 |
| Holding Costs (6 mo × $1,500) | $9,000 |
| Total Investment | $229,000 |
| ARV | $290,000 |
| Selling Costs (8%) | $23,200 |
| Net Proceeds | $266,800 |
| Profit | $37,800 |
| ROI | 16.5% |
| Annualized ROI | 33% |
| 70% Rule Max Price | $163,000 — FAIL |
Good profit, but the deal doesn't technically pass the 70% rule because of the higher purchase price. Experienced investors sometimes flex the rule when they have high confidence in ARV and can control costs.
Frequently Asked Questions
The 70% rule says pay no more than 70% of ARV minus repair costs. It's designed so that after deducting holding costs (~10%) and selling costs (~10%), you still have ~10% as profit. It's a screening tool, not a guarantee — always run full numbers.
Most experienced flippers target 10-20% ROI per flip, which translates to $20,000-$50,000+ profit on average deals. Anything under 10% ROI may not justify the risk. ATTOM data shows the average flip gross profit is about $70,000, though net after costs is significantly less.
The average flip takes 4-8 months from purchase to sale. Light cosmetic flips can be done in 2-3 months. Gut renovations with structural work, permits, and custom finishes can take 9-12+ months. Every extra month adds $1,000-$3,000 in holding costs.
Yes. If you flip a property in under 12 months, profits are taxed as ordinary income (up to 37%), not at lower capital gains rates. If you hold 12+ months, long-term capital gains rates apply (0%, 15%, or 20%). Flipping frequently may classify you as a "dealer" in the IRS's view, affecting how income is taxed.