House Flip Profit Calculator
Calculate your house flip profit and ROI.
Enter purchase price, rehab costs, holding costs, selling costs, and sale price to see net profit.
House flipping profit calculation must account for all costs — not just the purchase price and sale price. Many first-time flippers overlook carrying costs, financing, and transaction fees, turning what looks like a $50,000 gain into a $5,000 loss.
The profit formula: Profit = After Repair Value (ARV) − Purchase Price − Renovation Costs − Holding Costs − Transaction Costs
The 70% Rule (quick evaluation): Maximum Purchase Price = ARV × 0.70 − Renovation Costs This ensures at least a 30% buffer for costs and profit.
Cost categories to include:
Purchase costs: Down payment, inspection ($300–$600), appraisal ($400–$700), closing costs (2–3%).
Renovation costs: Labor + materials. Always add 15–20% contingency for surprises behind walls.
Holding costs (per month while you own it):
- Hard money loan interest: 8–15% annual rate → 0.67–1.25%/month on loan balance
- Property taxes: typically $200–$800/month on a $200K property
- Insurance (vacant property): $100–$300/month
- Utilities: $150–$300/month
Selling costs:
- Agent commissions: 5–6% of ARV
- Closing costs (seller): 1–2%
- Staging: $1,000–$3,000
Worked example: ARV: $340,000 | Purchase: $175,000 | Renovations: $65,000 | Hold: 4 months Holding costs: $2,400/month × 4 = $9,600 Purchase closing: $4,200 | Selling costs (6.5%): $22,100 Total costs: $175,000 + $65,000 + $9,600 + $4,200 + $22,100 = $275,900 Profit = $340,000 − $275,900 = $64,100 (18.8% return)
70% Rule check: $340,000 × 0.70 = $238,000 − $65,000 = $173,000 maximum buy price. At $175,000, this deal is borderline — negotiate harder.