A house flip calculator is a tool for estimating sale profit after purchase, renovation, holding, financing, and selling costs.
Frequently asked questions
How do you calculate profit on a house flip?
Profit equals the After Repair Value (ARV) minus your purchase price, rehab costs, holding costs, financing costs, closing costs, and selling costs (typically realtor fees). The formula is: Profit = ARV − (Purchase + Rehab + Holding + Financing + Closing + Realtor). Most experienced investors target a minimum of $25,000–$40,000 in net profit per flip to make the time, capital, and risk worthwhile.
What is the 70% rule in house flipping?
The 70% rule is a quick screening heuristic: never pay more than 70% of the After Repair Value (ARV), minus rehab costs, for an investment property. The formula is: Maximum Allowable Offer = (ARV × 0.70) − Rehab. The 30% gap covers holding costs, financing, closing, realtor fees, and your profit margin. The rule is conservative on purpose — it protects you from overpaying when comps, repair estimates, or market timing turn out worse than expected.
How much should rehab cost on a flip?
Rehab costs vary widely by market and scope. These illustrative planning ranges are not a market quote: light cosmetic rehabs run $15–$30 per square foot, mid-level rehabs $30–$60 per square foot, and full gut rehabs $75–$150+ per square foot. Always get a detailed scope of work and at least two licensed contractor bids before committing. Add a 10–20% contingency line item for surprises — every flip uncovers something the inspection missed.
What ROI is good for a house flip?
Most professional flippers target a minimum 15–20% return on invested capital per deal, with many holding out for 25%+ on competitive markets. ROI alone is not enough — annualized return matters more. A 20% ROI on a 3-month flip is far stronger than 20% on an 18-month project. Always compare projected ROI against your opportunity cost (what else that capital could earn).
How accurate are house flip calculators?
A flip calculator is only as accurate as its inputs. The arithmetic is exact, but ARV, rehab costs, and holding timeline are estimates that can swing the projected profit by tens of thousands of dollars. Use a calculator like FlipCalculatorPro for a fast first-pass underwriting decision, then validate ARV with a licensed agent's CMA, get firm contractor bids, and stress-test holding costs at 1.5× your expected timeline before signing a contract.