House Flip Profit Calculator
Calculate house flip net profit from purchase price, renovation budget, holding costs, and selling expenses.
Returns ROI and after-repair value (ARV).
House flip profit calculation must account for every cost category: acquisition, renovation, holding, selling costs, and taxes. Ignoring any one of these can turn a seemingly profitable deal into a loss.
The Formula:
Net Profit = After Repair Value (ARV) − Purchase price − Renovation costs − Holding costs − Selling costs − Taxes
Cost Category Breakdown:
| Category | Typical Percentage of ARV |
|---|---|
| Purchase price (using 70% rule) | ≤ 70% of ARV |
| Renovation costs | 15–25% of ARV |
| Holding costs (6 months) | 3–5% of ARV |
| Selling costs | 6–8% of ARV |
| Target profit | 10–20% of ARV |
The 70% Rule:
Maximum purchase price = ARV × 70% − Renovation costs
Worked Example:
ARV (expected sale price): $350,000
Max purchase price = $350,000 × 70% − $55,000 renovation = $245,000 − $55,000 = $190,000
Holding costs (6 months): loan interest + insurance + taxes + utilities = $15,000
Selling costs: 6% agent commissions + 2% closing costs = $28,000
Net profit: $350,000 − $190,000 − $55,000 − $15,000 − $28,000 = $62,000
Return on investment: $62,000 / $190,000 = 32.6% (over 6 months)
Practical Tips:
- Always add 15–20% contingency to your renovation budget — surprises always happen
- Short-term capital gains (held under 1 year) are taxed as ordinary income in the US — plan for 25–37%
- The 70% rule is a starting point; adjust for your market, renovation risk, and required returns
- Partner with a licensed contractor for the first flip to avoid costly estimation errors
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
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