House Flipping Profit Calculator
Run a flip through the 70% rule: your maximum offer, projected profit and return on investment after repairs and holding costs.
How it works
Max offer = ARV × rule% − rehab · Total in = purchase + rehab + holding + selling costs · Profit = ARV − total in · ROI = profit ÷ total in × 100
Flippers use the 70% rule as a guardrail: never pay more than 70% of the after-repair value minus the repair budget. That 30% buffer is meant to absorb holding costs, selling costs and profit, protecting you if the rehab runs over or the market softens. This calculator shows that maximum offer and then the actual deal math — subtracting purchase, rehab, holding costs and selling costs (agent commission and closing on the sale) from the ARV to get profit and ROI. If the profit is thin or the price sits above the 70% cap, the deal needs a lower buy price, a cheaper rehab or a higher ARV.
Worked example
A home with a $300,000 ARV and a $40,000 rehab has a 70%-rule maximum offer of 300,000 × 0.70 − 40,000 = $170,000. Buy it for $180,000 instead, add $9,000 holding and $21,000 selling costs (7% of ARV), and total money in is $250,000 — a $50,000 profit and a 20% ROI, though the $180,000 price is $10,000 over the rule's cap.
Frequently asked questions
What is the 70% rule in house flipping?
It says your maximum purchase price should be 70% of the after-repair value minus estimated repairs. The 30% margin is meant to cover holding costs, selling costs and your profit. It is a conservative screening rule, not a guarantee.
What are holding costs?
Every expense of owning the property while you renovate and sell: loan interest, property taxes, insurance, utilities and HOA dues. They grow the longer the project drags on, which is why fast flips are more profitable.
Why subtract selling costs from profit?
Because you rarely keep the full sale price. Agent commissions and closing costs commonly take 6–8% of the ARV, and leaving them out overstates profit. A realistic flip model always nets them out.
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Educational estimate, not financial or real-estate advice. Actual costs, rates and returns vary by lender, market and property.