House Flipping Calculator
Fix and flip profit, after every cost
- Return on cash125% annualized
- 49.8%
- Cash neededbefore the sale
- $46,050
- Profit marginprofit ÷ ARV
- 7.1%
- 70% rule max offerARV × 70% − rehab
- ! Above 70% rule $177,500
- Loan amount
- $230,000
Free to check. Based on the rent, not your tax returns.
Estimates, not a loan offer. Taxes on the profit aren't included. We may earn a commission when you click. It does not change your estimate. How we calculate · How we make money
| Amount | |
|---|---|
| Sale price (ARV) | $325,000 |
| Purchase price | −$200,000 |
| Purchase closing costs | −$4,000 |
| Rehab | −$50,000 |
| Holding costs (6 mo) | −$4,800 |
| Loan interest | −$12,650 |
| Loan points | −$4,600 |
| Selling costs | −$26,000 |
| Profit | $22,950 |
Financing is one of your biggest costs
Fix-and-flip lenders differ on rate, points and how much of the rehab they fund. Check what you can get for this deal.
Free to check. Based on the rent, not your tax returns.
How flip profit is calculated
Profit is the sale price minus everything the project costs: the purchase, closing costs to buy, the rehab, holding costs while you own it, loan interest and points, and the costs to sell. Selling costs are the one people forget most, and agent commissions, closing costs and buyer concessions often add up to 6% to 10% of the sale price.
In the example, a $200,000 purchase with $50,000 of rehab that sells for $325,000 after six months leaves about $23,000 of profit after $26,000 of selling costs and about $17,250 of interest and points. That's a 50% return on the $46,000 of cash needed.
The 70% rule
A common rule of thumb is to pay no more than 70% of the ARV minus the rehab cost. Here that's $325,000 × 70% − $50,000 = $177,500. The example pays $200,000, above the rule, which is why the margin is thin. The rule leaves room for financing, holding and selling costs plus a profit. It's a quick screen, not a substitute for running the full numbers.
What hurts flip profits
- Time. Every extra month adds holding costs and interest. Try a longer hold to see the effect.
- Rehab overruns. Budget a contingency of 10% to 20%.
- An optimistic ARV. Base it on recent sales of similar renovated homes nearby.
- Taxes. Flip profits are often taxed as ordinary income. They aren't included here.
If the numbers work better as a rental, compare the same property in the BRRRR calculator.
Frequently asked questions
How do you calculate profit on a house flip?
Sale price minus purchase price, closing costs to buy, rehab, holding costs, loan interest and points, and selling costs. Then divide profit by the cash you put in for your return on cash.
What is the 70% rule in house flipping?
Pay no more than 70% of the after-repair value minus the rehab cost. For a $325,000 ARV and $50,000 of rehab, that's $177,500. The 30% cushion covers buying, holding, financing and selling costs plus profit.
How do you get a loan to flip a house?
Fix-and-flip lenders, often called hard money lenders, lend based on the property and your experience. Many fund most of the purchase and the rehab, with higher rates and points than a regular mortgage and terms of about 12 to 24 months.
Do you need a real estate license to flip houses?
Generally no. You're buying and selling property you own. Rules differ for wholesaling contracts and by state, so check your state's requirements.