House Flip Calculator
Profit is what is left after everything.
House Flip Calculator
Profit = ARV x (1 - selling costs) - (purchase + rehab + holding); return = profit / total cost.
Calculated instantly
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What This Calculator Does
The House Flip Calculator totals the money a flip consumes and compares it with the net proceeds after selling costs. It reports profit, return on total cost, and the maximum offer implied by the common 70 percent rule, so you can screen a deal before spending on inspections.
How It Works
Total project cost is purchase price plus rehab plus holding costs. Net sale proceeds are the after-repair value reduced by the selling cost percentage for commissions, closing fees, and concessions. Profit is net proceeds minus total cost. Return on cost divides profit by total cost. The 70 percent rule subtracts rehab from 70 percent of ARV to suggest a maximum purchase price.
Example
Buy at $150,000, spend $40,000 on rehab and $5,000 on holding. The after-repair value is $250,000 and selling costs are 8 percent, so net proceeds are $230,000. Total cost is $195,000, profit is $35,000, and return on cost is 17.9 percent. The 70 percent rule suggests a maximum offer of $135,000.
Formula
purchase + rehab + holdingARV x (1 - selling cost %)net proceeds - total project costprofit / total project costARV x 0.70 - rehabReading the Results
Total project cost
Everything spent to acquire, improve, and hold the property. It excludes the selling costs, which are netted from the sale price instead.
Profit
Pre-tax profit after selling costs. It does not include financing points, income tax, or the cost of your own time.
70 percent rule max offer
A quick screening ceiling, not a valuation. It assumes selling and holding costs fit inside the 30 percent margin and that rehab is accurate.
Sources and References
IRS Publication 523 - Selling Your Home
Basis, improvements, and selling costs
Explains how acquisition and improvement costs affect taxable gain. It is not a flip-specific tax guide.
Consumer Financial Protection Bureau - Closing costs
Buying and selling transaction costs
A consumer reference for the fees that belong in the selling cost percentage.
References identify the method or data behind this calculator. Where a standard or tariff changes, the current edition applies, and the assumptions stated above take precedence over a remembered figure.
Frequently Asked Questions
What is the 70 percent rule?
A common house-flipping heuristic: do not pay more than 70 percent of the after-repair value minus the rehab cost. It is meant to leave room for selling costs, holding costs, and profit. It is not a law or a guarantee, and it fits some markets better than others.
What should holding costs include?
Property tax, insurance, utilities, loan interest, HOA dues, lawn and security, and any rent you pay while the project runs. Add a contingency for delays. A flip that takes four months instead of three can lose more in holding than it saved on a finish.
How accurate is the after-repair value?
Only as accurate as the comparable sales behind it. Use recent closed sales of similar size, condition, and location, and adjust for differences. Do not use active listings or a value that assumes a finish level you are not funding.
Does the calculator include taxes and financing?
No. Profit is pre-tax and excludes loan origination, points, and any penalty for a short holding period. A hard-money loan can consume a large share of the spread. Model financing separately before committing.
What return should a flip target?
Many flippers look for a profit margin of 15-20 percent of the after-repair value, or a return on cost in the high teens or better, to compensate for execution risk. The right target depends on the market, the holding period, and how much of the work you do yourself.