House Flip Calculator

Start with the purchase price and closing costs for the acquisition. Closing costs for investment properties typically run 2-5% of the purchase price.

Enter your renovation budget with a realistic estimate. Get contractor bids before committing and add 10-20% contingency for surprises behind walls.

Set your financing terms including down payment and interest rate. Hard money lenders typically require 20-30% down at 8-15% interest. If paying cash, set the down payment to 100%.

Include holding costs like property taxes, insurance, and utilities. These add up fast and eat into profit every month the property sits unsold.

Enter the After Repair Value (ARV) based on comparable sales and your selling costs (typically 5-6% for agent commissions plus transfer taxes).

The 70% rule is the most widely used quick-analysis tool in house flipping. It states that you should pay no more than 70% of the ARV minus repair costs.

Formula: Maximum Purchase Price = ARV x 0.70 - Estimated Repairs

The 30% margin covers your profit, holding costs, financing, and selling expenses. In practice, your actual margin depends on how long you hold and your financing costs.

This calculator shows whether your deal passes or fails the 70% rule, along with the exact maximum purchase price you should pay.

Total Investment is your all-in cost: purchase price plus every dollar spent on renovation, financing, holding, closing, and selling. Compare this to ARV for your profit.

ROI measures profit as a percentage of total investment. A 15% ROI on a $300,000 investment is $45,000 profit.

Cash-on-Cash Return measures profit against your actual cash invested (down payment, renovation, closing, and holding costs). This is often higher than ROI because you use leverage.

Break-Even ARV is the minimum sale price where you neither make nor lose money. If the market softens, this tells you how much cushion you have.

Underestimating renovation costs. The number one killer of flip profitability. Always get multiple contractor bids and add 15-20% contingency for hidden problems.

Overestimating ARV. Be conservative with your after repair value. Use the lowest reasonable comp, not the highest. One bad comp can turn a profitable deal into a loss.

Ignoring holding costs. Every month you hold a property costs money in taxes, insurance, utilities, and loan interest. A 6-month project that stretches to 12 months can eliminate your entire profit margin.

Skipping the inspection. A thorough inspection before purchase reveals structural, electrical, plumbing, and foundation issues that would otherwise become expensive surprises.