House Flipping Profit Calculator
Underwrite a single flip: scoped rehab, simple interest carry, purchase and sale frictions, ROI and annualized return, ARV stress rows, and a 70% rule check, all in your browser.
100% client-side. Inputs stay in your browser (ons-house-flip-inputs).
Stack purchase, rehab, simple interest carry, a 1% purchase closing estimate, and resale frictions against ARV, then stress the exit with sensitivity rows and the 70% rule guardrail.
Purchase & financing
Exit assumptions
Rehab scope
| Description | Cost | |
|---|---|---|
Total rehab modeled: $43,000
70% rule: you are above the quick guardrail max purchase of $153,000 (70% of ARV minus rehab). That does not forbid the deal, it flags thin margin for surprises.
Net profit (est.)
$25,600
Sale proceeds $257,600 minus all-in costs $232,000 (before income tax).
Total costs
$232,000
ROI
11.0%
Net profit ÷ total costs
Annualized ROI
23.3%
Compounds period return to 12 months
Loan balance
$144,000
Monthly interest
$1,200
Total carrying
$7,200
Purchase closing (1%)
$1,800
Fixed assumption in this model
Sale proceeds
$257,600
Capital stack (costs)
Horizontal stack of what you fund before the sale, purchase, rehab, interest carry, and the 1% purchase closing estimate.
ARV sensitivity
Same deal, different exit prices. Rows in red are underwater at that ARV; the highlighted row is your entered ARV.
| Scenario | ARV | Net profit |
|---|---|---|
| 85% of ARV | $238,000 | -$13,040 |
| 90% of ARV | $252,000 | -$160 |
| 95% of ARV | $266,000 | $12,720 |
| Base ARV | $280,000 | $25,600 |
| 105% of ARV | $294,000 | $38,480 |
How this tool works
Start by entering your purchase price and how you plan to finance the deal. Set the down payment percentage and interest rate for your loan. The tool calculates your monthly interest cost and multiplies it by the number of months you expect to hold the property. Next, add your rehab costs by category: kitchen, bathrooms, flooring, roof, HVAC, paint, and other items. The tool totals these for you. Then enter your expected after repair value (ARV), the price you believe the property will sell for after repairs. The tool subtracts the agent commission and seller closing costs from the sale price to find your net sale proceeds. Finally, the calculator adds up every cost: purchase price, rehab, carrying costs, and purchase closing costs. It subtracts this total from your net sale proceeds to find your profit. It also shows ROI as a percentage and converts it to an annualized figure so you can compare flips of different lengths on equal terms. The 70% rule check runs automatically, multiplying your ARV by 0.70 and subtracting total rehab to show the maximum purchase price most experienced flippers consider safe.
Worked example
A $180,000 purchase with 20% down at 10% hard money interest rate, held for 6 months, with $43,000 in total rehab (kitchen $15k, bathrooms $8k, flooring $6k, roof and HVAC $10k, paint $4k) and a $280,000 ARV at 6% agent commission and 2% seller closing costs. The loan is $144,000, monthly interest is $1,200, total carrying costs are $7,200, purchase closing costs are $1,800, and net sale proceeds are $257,600. Total costs come to $232,000, leaving a net profit of $25,600, a 11.03% ROI, and a 23.28% annualized ROI. The 70% rule sets a maximum purchase price of $153,000, so the actual $180,000 purchase price is above that limit, meaning the margin is thinner than the rule recommends and the deal is sensitive to rehab overruns or a longer hold.
Frequently asked questions
What is the 70% rule in house flipping?
The 70% rule says you should pay no more than 70% of a property's after repair value minus the cost of repairs. If ARV is $280,000 and rehab is $43,000, the maximum purchase price under this rule is $153,000. The rule builds in a cushion for profit, carrying costs, and budget overruns. Many experienced flippers use it as a first-pass filter before running a full analysis.
What is ARV (after repair value)?
ARV is the estimated market value of a property after all renovations are complete. You find it by looking at recent sales of similar homes in the same neighborhood that are already in updated condition. Real estate agents and appraisers call these comparable sales, or comps. Your flip profit depends heavily on an accurate ARV estimate, so pulling at least three to five comps is worth the time.
How do hard money loans affect flip profit?
Hard money loans charge higher interest rates than conventional mortgages, typically 8% to 15%. This raises your monthly carrying costs. On a $144,000 loan at 10%, you pay $1,200 per month in interest alone. Over a six-month project, that is $7,200 in carrying costs. Hard money is common in flipping because these lenders approve quickly and lend on property value rather than your personal income. The trade-off is that every month of delay costs more than it would with cheaper financing.
How do I estimate rehab costs accurately?
Get bids from at least two contractors before buying the property. Walk the property with each contractor and ask for itemized estimates, not lump sums. Add a 10% to 15% contingency buffer on top of the total. Common categories to estimate separately include kitchen, bathrooms, flooring, roofing, HVAC, electrical, plumbing, and paint. Track actual costs against your estimate during the project so you catch overruns early.
What closing costs should I include?
On the purchase side, expect about 1% of the purchase price for title, escrow, and recording fees. On the sale side, budget for the buyer's agent commission (typically 2.5% to 3%), your listing agent commission (2.5% to 3%), and seller closing costs (1% to 2%). Together, sale-side costs usually run 5% to 8% of the sale price. These costs come directly out of your profit, so leaving them out of your analysis overstates your return.
Should I include capital gains tax in my flip calculation?
This calculator does not include taxes because tax situations vary by person. However, you should be aware that flip profits are usually taxed as ordinary income, not long-term capital gains, because you hold the property for less than a year. Depending on your tax bracket, this could be 22% to 37% of your profit at the federal level, plus state taxes. Run your after-tax number separately or consult a tax professional before committing to a flip.