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House Flip Calculator

Calculate flip profit, ROI, and 70% rule maximum offer

Flip Profit

$32,400

ROI

13.0%

Total Costs

$287,600

70% Rule Max

$174,000

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Includes agent commissions, closing costs, transfer taxes

Estimated Flip Profit

$32,400

ROI

13.0%

Profit Margin

10.1%

Total Costs

$287,600

ARV

$320,000

70% Rule Analysis

Maximum offer = ARV x 70% - Repair Costs

$174,000

Your offer is $26,000 above the 70% rule maximum

Cost Breakdown

Total costs: 89.9% of ARV90%
Purchase Price$200,000
Rehab Cost$50,000
Holding Costs (6 months)$12,000
Selling Costs (8%)$25,600
Total Costs$287,600
Sale Price (ARV)$320,000
Profit$32,400

Frequently Asked Questions

Q

How do you calculate house flip profit?

Flip Profit = After-Repair Value (ARV) - Purchase Price - Rehab Costs - Holding Costs - Selling Costs. For a $200,000 purchase, $50,000 rehab, $320,000 ARV: Total costs = $200,000 + $50,000 + $12,000 holding + $25,600 selling = $287,600. Profit = $32,400.

  • ARV: What the property is worth after renovation
  • Rehab costs: All renovation and repair expenses
  • Holding costs: Loan payments, taxes, insurance, utilities during rehab
  • Selling costs: Agent commissions (5-6%), closing costs (2-3%)
  • Example: $320,000 ARV - $287,600 costs = $32,400 profit
Cost CategoryAmount% of ARV
Purchase Price$200,00062.5%
Rehab$50,00015.6%
Holding (6 mo)$12,0003.8%
Selling (8%)$25,6008.0%
Q

What is the 70% rule in house flipping?

The 70% rule states: Maximum Offer = ARV x 70% - Repair Costs. For a $320,000 ARV with $50,000 repairs: Max Offer = $320,000 x 0.70 - $50,000 = $174,000. This rule builds in a 30% margin for profit, holding costs, and selling costs.

  • Formula: Max Offer = ARV x 0.70 - Repair Costs
  • The 30% margin covers profit + holding + selling costs
  • Some investors use 65% in expensive markets for extra margin
  • Beginners should use 65-70%; experienced flippers may go to 75%
  • Example: $320,000 ARV x 0.70 = $224,000 - $50,000 = $174,000 max
ARVRepairs70% Rule Max Offer65% Rule Max Offer
$200,000$30,000$110,000$100,000
$300,000$50,000$160,000$145,000
$400,000$75,000$205,000$185,000
Q

What are typical holding costs for a house flip?

Typical holding costs are $1,500-$3,000/month including: hard money loan interest (10-14% annually), property taxes, insurance, utilities, and HOA. On a 6-month flip with a $200,000 loan at 12%, monthly holding costs average about $2,500.

  • Hard money interest: $1,500-$2,000/month on $200K loan at 12%
  • Property taxes: $200-$500/month depending on location
  • Insurance (builder risk): $100-$200/month
  • Utilities: $150-$300/month
  • HOA (if applicable): $100-$500/month
Holding PeriodMonthly Cost $2,000Monthly Cost $2,500Monthly Cost $3,000
3 months$6,000$7,500$9,000
6 months$12,000$15,000$18,000
9 months$18,000$22,500$27,000
12 months$24,000$30,000$36,000
Q

What selling costs should I expect when flipping?

Selling costs typically total 8-10% of the sale price: real estate agent commissions (5-6%), closing costs (1-2%), transfer taxes (0.5-2%), title insurance, and staging. On a $320,000 sale, expect $25,600-$32,000 in selling costs.

  • Agent commissions: 5-6% ($16,000-$19,200 on $320K)
  • Closing costs: 1-2% ($3,200-$6,400)
  • Transfer taxes: 0.5-2% varies by state
  • Title insurance: $1,000-$2,000
  • Staging and photos: $500-$3,000
Q

What ROI should I target for a house flip?

Most successful flippers target 15-25% ROI on total investment. This means on a $250,000 total investment (purchase + rehab), the minimum acceptable profit is $37,500-$62,500. Experienced flippers aim for $25,000+ minimum profit regardless of percentage.

  • Minimum $25,000 profit to justify time and risk
  • 15% ROI minimum for experienced flippers
  • 20%+ ROI target for beginners (margin for mistakes)
  • Factor in opportunity cost of your time (3-12 months)
  • Higher risk deals should demand higher ROI targets
Total Investment15% ROI Profit20% ROI Profit25% ROI Profit
$150,000$22,500$30,000$37,500
$200,000$30,000$40,000$50,000
$300,000$45,000$60,000$75,000

Example Calculations

1$200,000 Purchase with $50,000 Rehab, $320,000 ARV

Inputs

Purchase Price$200,000
Rehab Cost$50,000
After-Repair Value$320,000
Holding Period6 months
Monthly Holding Cost$2,000
Selling Costs8%

Result

Flip Profit$32,400
ROI12.96%
70% Rule Max Offer$174,000
Total Costs$287,600

Holding = $2,000 x 6 = $12,000. Selling = $320,000 x 0.08 = $25,600. Total costs = $200,000 + $50,000 + $12,000 + $25,600 = $287,600. Profit = $320,000 - $287,600 = $32,400. ROI = $32,400 / ($200,000 + $50,000) = 12.96%. 70% rule: $320,000 x 0.70 - $50,000 = $174,000 max offer.

2$150,000 Purchase with $35,000 Rehab, $240,000 ARV

Inputs

Purchase Price$150,000
Rehab Cost$35,000
After-Repair Value$240,000
Holding Period4 months
Monthly Holding Cost$1,500
Selling Costs8%

Result

Flip Profit$29,800
ROI16.1%
70% Rule Max Offer$133,000
Total Costs$210,200

Holding = $1,500 x 4 = $6,000. Selling = $240,000 x 0.08 = $19,200. Total costs = $150,000 + $35,000 + $6,000 + $19,200 = $210,200. Profit = $240,000 - $210,200 = $29,800. ROI = $29,800 / ($150,000 + $35,000) = 16.1%. 70% rule: $240,000 x 0.70 - $35,000 = $133,000 max offer.

Formulas Used

Flip Profit

Profit = ARV - Purchase Price - Rehab Cost - Holding Costs - Selling Costs

Total profit from a house flip after all acquisition, renovation, holding, and disposition costs.

Where:

ARV= After-Repair Value (expected sale price)
Purchase Price= Acquisition cost of the property
Rehab Cost= Total renovation and repair expenses
Holding Costs= Monthly costs x number of months held
Selling Costs= ARV x selling cost percentage (typically 8%)

70% Rule (Maximum Offer)

Max Offer = ARV x 0.70 - Repair Costs

The maximum purchase price that allows a 30% margin for profit, holding costs, and selling costs.

Where:

Max Offer= Maximum allowable purchase price
ARV= After-Repair Value
Repair Costs= Estimated total renovation cost

Flip ROI

ROI = Profit / (Purchase Price + Rehab Cost) x 100

Return on investment calculated against your total capital outlay (purchase price plus renovation costs).

Where:

ROI= Return on investment percentage
Profit= Net profit from the flip
Purchase Price= Property acquisition cost
Rehab Cost= Total renovation expenses

Understanding House Flipping Economics

House flipping requires careful number-crunching before making an offer. Our calculator analyzes every cost component and applies the 70% rule to determine your maximum allowable offer.

The key to profitable flipping is accurate ARV estimation and conservative cost budgeting. Most failed flips underestimate rehab costs by 20-30% and holding periods by 2-3 months.

Use this calculator to stress-test different scenarios. Increase rehab costs by 25% and add 2 months to your holding period to see if the deal still works under adverse conditions.

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Last Updated: Mar 25, 2026

This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.

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