Free house flip profit calculator — analyze any flip deal in seconds
Enter your purchase price, rehab costs, ARV, and financing terms to get net profit, ROI, annualized return, and break-even sale price — plus an automatic 70% rule check.
Enter your deal numbers below. Results update instantly.
The Deal
Financing
Costs
Net Profit
$29,060
67.4% annualized (6-mo hold)
70% MAO: $170,000 — you're paying $185,000. $15,000 above the 70% rule MAO.
Stress Test
Free — includes deal scoring, scenarios & lender-ready reports
A house flip has one question at its core: does ARV minus all costs leave enough profit to justify the risk? The calculation is straightforward — but getting the inputs right is where most first-time flippers go wrong.
Net Profit
ARV − Total Project Cost
Total project cost includes purchase, rehab, financing, carrying, closing, and selling costs.
ROI
Net Profit ÷ Cash Invested
Cash invested = down payment + points + buying closing + rehab + carrying costs. Not total project cost.
Annualized ROI
(1 + ROI)^(12 ÷ hold months) − 1
Adjusts ROI for time. A 20% ROI on a 4-month flip is 73% annualized — higher than a 20% ROI over 12 months.
70% Rule (MAO)
ARV × 70% − Repair Costs
Quick filter for max offer. The 30% margin is meant to cover all costs and leave profit — but it's a rough guide, not a precise budget.
Purchase Price: $185,000
Rehab Costs: $40,000 + 10% contingency = $44,000
ARV: $300,000
Financing: 20% down, 12% hard money, 2 points, 6-month hold
Down payment: $37,000
Loan interest (6 mo): $8,880
Points: $2,960
Buying closing (2%): $3,700
Carrying costs (6 mo): $2,400
Selling costs (8%): $24,000
Total project cost: $270,940
Net Profit = $300,000 − $270,940 = $29,060
ROI = $29,060 ÷ $90,060 cash invested = 32%
This deal fails the 70% rule (MAO = $170,000 vs $185,000 purchase price) but still produces a 32% ROI because the actual cost structure supports the deal. The 70% rule is a starting filter, not the final word.
| Cost Category | Typical Range | Common Mistakes |
|---|---|---|
| Rehab costs | Varies widely | Underestimating scope; always add 10–15% contingency |
| Buying closing costs | 1–3% of purchase price | Often ignored on hard money deals; still apply |
| Hard money interest | 10–14% annual; ~0.85–1.15%/mo | Underestimating hold time — every extra month adds ~1% of loan in interest |
| Loan points | 1–3% of loan amount | Paid upfront at close; often omitted from projections |
| Carrying costs | $300–$800/month | Taxes, insurance, utilities add up fast on long holds |
| Selling costs | 7–9% of sale price | Agent commissions (5–6%) + seller closing costs (1–3%) |
| Metric | Minimum Target | Strong Deal |
|---|---|---|
| Net profit (absolute) | $20,000–$25,000 | $40,000+ |
| ROI on cash invested | 15% | 30%+ |
| Hold period | Under 9 months | 4–6 months |
| ARV-to-cost spread | 25%+ margin above all-in cost | 35%+ |
Fix and flip vs. BRRRR: flips are one-time capital events — you realize profit at sale and redeploy. BRRRR builds a rental portfolio using the same distressed-property discount. Both strategies start with the same underwriting skills. If you're comparing strategies, see how BRRRR analysis works.
A fix and flip calculator estimates your net profit and return on investment for a house flip. You input the purchase price, rehab costs, ARV (after repair value), financing terms, and selling costs — and the calculator outputs your net profit, ROI, annualized return, and break-even sale price.
Most experienced flippers target 15–20% ROI on cash invested as a minimum, with successful flips often delivering 20–40%. Because flips are short-term (typically 3–9 months), annualized returns can look high even on modest dollar profits. A $25,000 profit on $80,000 invested over 5 months is a 31% ROI and roughly 90% annualized — but the absolute dollar return matters as much as the percentage.
The 70% rule says: Maximum Allowable Offer (MAO) = ARV × 70% − Repair Costs. If a house has an ARV of $300,000 and needs $40,000 in repairs, the 70% rule says pay no more than $170,000. The 30% margin is meant to cover all your costs — financing, closing, holding, selling — and leave profit. It's a quick filter, not a precise calculation. Our calculator gives you exact numbers based on your actual cost structure.
The full cost stack for a flip: (1) Purchase price, (2) Rehab/repair costs + contingency (typically 10–15%), (3) Buying closing costs (1–3%), (4) Hard money loan points (1–3%) and monthly interest (10–14% annualized), (5) Monthly carrying costs — taxes, insurance, utilities during the hold, (6) Selling costs — agent commissions plus closing fees, typically 7–9% of the sale price. First-time flippers routinely underestimate carrying costs and contingency.
Hard money significantly compresses flip margins. A $150,000 loan at 12% interest over 6 months costs $9,000 in interest alone, plus 2 points ($3,000) at origination — $12,000 in financing costs before any other expenses. This is why experienced flippers are disciplined about hold period: every extra month adds ~$1,500 in interest costs on a $150k loan.
ARV (After Repair Value) is what the property will be worth after all renovations are complete. It's the foundation of every fix and flip analysis. ARV is estimated by pulling comparable sales (comps) — recently sold properties in the same neighborhood with similar size, age, and condition to what your property will be post-renovation. Getting ARV wrong is the #1 cause of failed flips.