House Flipping Profit Calculator
Estimate your net profit, ROI, and full cost breakdown for any fix-and-flip deal.
| Item | Amount | % of ARV |
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| Month | Monthly Cost | Loan Interest | Cumulative |
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How to Use This House Flipping Profit Calculator
Enter your property's purchase price and expected After Repair Value (ARV). Add your rehab budget, monthly holding costs, loan interest rate, and all transaction fees. Click Calculate Flip Profit to instantly see your net profit, ROI, and a full cost breakdown — including a month-by-month holding cost table.
Why This Matters
House flipping looks simple on TV but the math gets complicated fast. A $180,000 house flipped for $250,000 sounds like a $70,000 gain — until you factor in $35,000 in renovations, $9,000 in agent commissions, $8,400 in 6-month holding costs, and $5,500 in closing fees. That's $57,900 in costs, leaving just $12,100 in net profit on roughly $215,000 invested — a 5.6% ROI. Many beginners skip these details and get burned.
Professional flippers typically target a minimum 15–20% ROI and use the 70% rule: never pay more than 70% of ARV minus rehab costs. This calculator helps you stress-test any deal before you commit capital, spot which cost category is eating your margin, and compare scenarios (6-month vs. 9-month hold, different rehab budgets) side by side.
How It's Calculated
The calculator uses these formulas:
- Total Holding Cost = (Monthly Holding Cost × Months) + (Loan Balance × Annual Rate / 12 × Months)
- Agent Commission = ARV × Commission Rate / 100
- Total Costs = Purchase Price + Rehab + Total Holding + Buying Closing + Selling Closing + Agent Commission + Other Costs
- Net Profit = ARV − Total Costs
- ROI = Net Profit / Total Costs × 100
- Cash-on-Cash Return = Net Profit / Cash Invested × 100 (Cash Invested = Down Payment + Rehab + All Fees)
Tips & Common Mistakes
- Underestimating rehab costs is the #1 mistake. Add a 10–20% contingency buffer on top of your contractor quote.
- Ignoring holding time: Every extra month costs money in mortgage interest, property taxes, insurance, and utilities. A 3-month delay can wipe $5,000–$10,000 from your profit.
- Forgetting the 70% rule: Max purchase price = (ARV × 0.70) − Rehab Costs. This protects your margin in down markets.
- Skipping the agent commission: A 5–6% commission on a $250,000 sale is $12,500–$15,000. It's often the single largest transaction cost.
- Miscalculating your loan balance: Interest is charged on the full loan amount, not just what you've drawn. Confirm your draw schedule with your lender.
Frequently Asked Questions
What is a good profit margin for house flipping?
Most experienced flippers target at least 15–20% ROI on total project cost, or a minimum $25,000–$30,000 net profit per deal. Anything below 10% ROI leaves too little margin for unexpected costs or a slow market. The 70% rule is the industry's quick sanity check for deal viability.
What does ARV mean in real estate?
ARV stands for After Repair Value — the estimated market value of the property after all renovations are complete. It's typically determined by a comparative market analysis (CMA) of similar recently-sold properties in the area. Your entire profit calculation depends on an accurate ARV, so conservative estimates are essential.
What are typical holding costs for a flip?
Holding costs vary by property and location but typically include: mortgage/hard money loan interest (8–12% annually is common), property taxes (prorated monthly), homeowner's insurance ($80–$200/month), utilities ($200–$400/month), and HOA fees if applicable. A total of $1,500–$3,000/month is common for a mid-range flip.
Should I use a hard money loan or conventional financing?
Hard money loans (10–14% interest, 1–3 points) close fast and don't require owner-occupancy, making them the standard for flippers. Conventional loans are cheaper but take 30–45 days to close and may not allow rapid resale. Most active flippers use hard money for acquisition and rehab, then either resell or refinance into a conventional loan.