Profit, cash needed, return and the 70% rule check for any flip.
Estimate the profit on a house flip before you buy it. Enter the purchase price, rehab budget, after repair value, holding time and financing, and the fix and flip calculator shows your profit, the cash you need, your return and whether the price fits the 70% rule.
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How to use the fix and flip calculator
- Deal. Enter the price, the full rehab budget (with a contingency), and the ARV, meaning what the house will sell for once it is fixed, based on recent comparable sales. Buying closing costs are a percentage of the price; selling costs (agent commissions plus seller closing costs) are a percentage of the sale price.
- Holding and financing. Enter how many months from purchase to sale and the monthly holding costs (taxes, insurance, utilities). For a hard money loan, enter how much of the purchase and rehab it covers, its interest rate and its points. Use 0% for an all-cash flip.
How the numbers work
- Total project cost = price + rehab + buying costs + holding costs + loan interest + points + selling costs.
- Profit = sale price (ARV) − total project cost.
- Cash needed = everything you pay before the sale minus what the lender funds.
- Return on your cash = profit ÷ cash needed. The annualized figure scales it to 12 months so you can compare flips of different lengths.
- 70% rule maximum offer = ARV × 70% − rehab. A quick check of whether the price leaves room for profit. See the 70% rule calculator.
Worked example
The calculator opens with a $200,000 purchase, a $50,000 rehab and a $330,000 ARV, held for six months with a hard money loan for 90% of the purchase and rehab at 11% and 2 points.
- The loan is $225,000; six months of interest-only payments cost $12,375 and the points $4,500.
- Buying costs $4,000, holding $6,000 and selling costs (8%) $26,400 bring the total project cost to $303,275.
- Profit: $330,000 − $303,275 = $26,725, an 8.1% margin on the sale price.
- You need about $51,875 of your own cash, so the return on your cash is 51.5% over six months.
The 70% rule says to pay no more than $181,000 for this house, and the calculator flags that $200,000 is over it. The deal still makes money on paper, but a rehab overrun or a lower sale price would erase most of the profit. That is the margin the 70% rule is meant to protect.
What is a good flip?
Many flippers want a profit of at least 10–20% of the sale price, or a minimum dollar profit (often $25,000–$30,000 or more) that justifies months of work and risk. Thin margins leave no room for surprises behind the walls.
Read the guide to fix and flip, house flipping profit margins and how to calculate ARV. Prefer a spreadsheet? Use the free house flipping spreadsheet.
Frequently asked questions
How much should I add for rehab surprises?
A contingency of 10–20% of the rehab budget is common, more for older houses or when you have not seen inside the walls. Put it into the rehab field.
Why are selling costs so high?
Agent commissions plus the seller's closing costs, transfer taxes and concessions to the buyer often add up to 6–10% of the sale price. Leaving them out is one of the most common reasons flips lose money.
Does the profit include income taxes?
No. Flip profits are usually taxed as ordinary income. Ask a CPA how it applies to you.