UtilibyWritten by the Utiliby editorial team · Last updated October 12, 2026 · Rules and formulas reviewed October 2026
What a house flip calculator does
A house flip calculator answers one question before you make an offer: if I buy this property, renovate it and sell it, how much will I actually make? It adds every cost between the day you buy and the day you sell, subtracts that from the expected sale price and shows the profit, the return on the cash you invested and the highest price you can pay and still hit your goal.
This free online house flip calculator goes further than a single profit line. It applies the 70% rule and lets you change the percentage, works backwards from a minimum profit target to give a maximum offer that reflects your real financing and selling costs, draws a waterfall chart of where the money goes, and builds what-if tables for sale price, rehab overruns, holding time and selling costs. It runs in your browser, so the numbers you type stay private.
How to use this flip calculator
- Enter the after-repair value. This is the price you expect to sell at once the work is done, based on recent sales of similar renovated homes.
- Enter your offer and rehab budget. Add a contingency percentage so surprises do not turn into losses.
- Add holding and buying costs. Include property tax, insurance, utilities and the number of months you expect to hold.
- Choose financing. For hard money enter the share of purchase and rehab funded, the rate and the points. For cash, select all cash.
- Set selling costs and your target. Agent commission and closing costs are often 6% to 8% of the sale price. Enter the minimum profit you want.
- Read the verdict and open the other tabs. The what-if tab stress-tests the deal and the max offer tab shows how much you can pay.
The flip math, step by step
| Item | Formula |
|---|---|
| Rehab with contingency | Rehab budget × (1 + contingency %) |
| Financing cost | Loan × rate ÷ 12 × months + loan × points |
| Total project cost | Purchase + rehab + buying costs + holding costs + financing |
| Selling costs | Sale price × selling % + fixed costs |
| Net profit | Sale price − selling costs − total project cost |
| Return on cash | Profit ÷ (total cost − loan) |
| Maximum offer (rule) | ARV × rule % − rehab |
| Maximum offer (profit target) | The purchase price at which profit equals your target |
Worked example. ARV 300,000, offer 190,000, rehab 40,000 with 10% contingency, six months at 900 a month, a hard money loan and 7% selling costs. Total project cost is about 258,600 and selling costs 21,000, so profit is about 20,400. That misses a 30,000 target. The max offer for 30,000 profit is about 181,000, roughly 9,000 lower, which is the number to take into negotiation.
The 70% rule explained
The 70% rule is the most quoted shortcut in flipping: maximum offer = ARV × 70% − repair costs. The 30% you leave covers selling costs, holding and financing costs and your profit. It is a fast filter for deciding whether a lead is worth a closer look.
- Cheap markets. When prices are low, fixed costs such as closing and carrying are a bigger share of value, so 65% to 70% may be needed.
- Expensive markets. With high prices, 75% or even 80% can still leave a healthy profit.
- Big rehabs. More work means more risk and time, so investors usually want a lower percentage.
- Cash versus loan. Hard money costs reduce what is left, so check the profit-target figure rather than relying on the rule alone.
Treat the rule as a screening tool and the profit-target maximum as your decision number. If the two disagree, trust the one built from your actual costs.
Setting a realistic profit target
Flipping is a job as well as an investment, so many people set two goals: a minimum dollar profit and a minimum margin. A rough starting point is at least 10% of the sale price and not less than 25,000 to 30,000 on an average home. If a deal only returns 8,000 after six months of work and risk, it is hard to justify against simply investing the cash.
Use the return on cash and the annualised return to compare flips with other uses of the same money, but remember that the annualised figure assumes you can find an equally good deal and repeat it right away, which is often optimistic.
Costs that eat flip profits
- Holding costs. Each extra month adds property tax, insurance, utilities, lawn care and interest.
- Financing costs. Hard money loans commonly charge two or more points plus interest. Check for draw fees and inspection fees.
- Rehab overruns. Hidden rot, old wiring, permits and change orders push budgets up. A contingency of 10% to 20% is common.
- Selling costs. Agent commission, seller closing costs, concessions, staging and cleaning can reach 8% of the price.
- Taxes. Flip profit is often taxed as ordinary income. Plan for it.
- Price risk. If the market softens while you renovate, the ARV falls but your costs do not.
How to read the what-if tables
The first table crosses sale price changes with rehab overruns. Green cells still meet your profit target. Red cells lose money. If most of the grid is green you have a robust deal. If only the top-left cell is green, you are relying on everything going right. The second table shows how months on the market change your profit and return, and the third shows the effect of different selling cost percentages.
Before you offer, look at the cell for a 5% lower sale price and 20% rehab overrun. If that cell is still positive you have a safety margin. If it is a deep loss, either lower your offer or walk away.
Flipping compared with wholesaling, BRRRR and buy-and-hold
Flipping gives a lump sum of profit but ends when the house sells, and the gain is usually taxed as ordinary income. Wholesaling requires little capital but depends on finding buyers. The BRRRR strategy keeps the property and recycles your cash through a refinance, and long-term rentals build income and equity slowly. Many investors combine them: they flip when the numbers are strong and rent when the rent-to-value ratio is better. You can compare a hold strategy with the free BRRRR calculator and the rental yield calculator.
Tips for safer flip analysis
- Use sale comps from similar renovated homes, not asking prices.
- Get contractor bids before you rely on a rehab number.
- Add a month or two to your timeline, then check the profit again.
- Test a lower sale price. If the deal fails, the margin is too thin.
- Include permits and inspections in the rehab figure.
- Keep cash reserves for surprises.
Common mistakes when using a flip calculator
- Using the list price of renovated homes as the ARV instead of the sold price.
- Leaving out holding and financing costs.
- Forgetting selling costs and buyer concessions.
- Assuming the rehab will finish on time and on budget.
- Ignoring the tax bill on the profit.
- Relying on the 70% rule without checking real costs.
Reading a flip analysis: a worked comparison
With the default numbers the project costs about 258,600 against a 300,000 sale price, leaving a profit of about 20,400, or 6.8% of the sale price. The return on invested cash looks high at 38% because the hard money loan leaves you with only about 53,000 of your own money in the deal, but the dollar profit is below a 30,000 target. The max offer tab explains the gap: to hit 30,000 you need to buy near 181,000 rather than 190,000. Notice how little room there is. A 5% lower sale price and a 20% rehab overrun together turn the same deal into a loss, which is exactly what the what-if grid shows.
Hard money, private money and cash
Hard money lenders typically fund a share of the purchase and sometimes rehab draws, charge interest-only at a higher rate than a bank, and add points. Private money from individuals can be cheaper but needs trust and clear terms. Cash avoids interest but limits how many deals you can do. The calculator assumes interest is charged on the full funded balance for the full hold, which is conservative when rehab money is drawn gradually. If your lender charges draw fees or a minimum interest period, add them to holding costs. Whatever the source, a delay hurts: each extra month costs interest, taxes, insurance and utilities while the sale price stays the same.
Choosing realistic ARV and rehab figures
The most dangerous number in any flip is ARV. Use sold comparables from the last three to six months, close to the property, with similar size, bedrooms and finish level. Adjust for differences, and do not use the best sale on the street as your anchor. For rehab, get contractor bids and itemise the scope: demolition, structure, mechanical systems, kitchens and baths, flooring, paint, exterior, permits and cleaning. A line-by-line budget with a contingency catches missing items before you buy. Finally, ask a local agent how long similar homes take to sell at that price, since a slow market multiplies every monthly cost.
Privacy
The flip calculator runs in your browser. The figures you enter are not sent to a server and are not stored. Reloading the page returns the example deal. Downloaded files are created on your device.
Related free tools
Use these free online tools together with this one:
- Estimate what you keep after a sale with the home sale net proceeds calculator.
- Check a long-term rental with the rental property cash flow calculator.
- Estimate closing costs on a new loan with the refinance closing costs calculator.
- Track renovation tasks with the online to-do list.
- Work out a project's break-even point with the break-even calculator.
- Work out percentages, such as 70% of a value, with the percentage calculator.
Frequently asked questions
What is the 70% rule in house flipping?
The 70% rule says the most you should pay for a property is 70% of its after-repair value minus the cost of repairs. For a house with an ARV of 300,000 and repairs of 40,000, the maximum offer is 300,000 × 0.70 − 40,000 = 170,000.
How do I calculate the maximum allowable offer (MAO)?
Multiply the ARV by your percentage (often 70%) and subtract the rehab cost. This calculator also gives a second figure that works backwards from your own profit target using your real financing, holding and selling costs.
Is the 70% rule always right?
No. It is a quick screen. In expensive markets investors may accept 75% to 80% because fixed costs are small compared with the price, and in slow markets or on big rehabs 65% or lower may be safer. Use the profit target figure to check.
How do you calculate profit on a flip?
Profit = sale price − selling costs − purchase price − rehab − buying costs − holding costs − financing costs. This calculator shows each step in a waterfall chart.
What is ARV and how do I find it?
ARV is the after-repair value: what a renovated home should sell for. Use recent sales of similar renovated homes within a short distance, usually sold in the last three to six months, and adjust for size and condition.
How much contingency should I add to a rehab budget?
Many flippers add 10% to 20%. Older houses, unknown plumbing or electrical, and structural issues justify more. The calculator lets you set the percentage and then test overruns in the what-if table.
What costs do people forget when flipping?
Holding costs for every extra month, loan points and interest, buying and selling closing costs, agent commissions, permits, staging, utilities, insurance on a vacant home and taxes on the profit.
What profit margin should I aim for on a flip?
A common target is a net profit of at least 10% of the sale price, often with a minimum dollar profit such as 25,000 to 30,000 to justify the risk and effort. Your own minimum depends on your market and experience.
What is return on cash invested?
It is profit divided by the cash you put in yourself. With a hard money loan your cash is lower, so the percentage can look large even when the dollar profit is modest. Look at both.
What is an annualised return?
It converts the return over your hold period into a yearly rate by compounding, which helps compare a 5-month flip with a 12-month project. It assumes you could repeat the same result, which is not always realistic.
How do hard money loans change a flip?
They reduce the cash you need but add interest, points and sometimes fees. Interest is usually charged on the funded balance for every month you hold, so delays cost you directly.
How does holding time affect profit?
Every month adds taxes, insurance, utilities and interest. The what-if table shows profit for 3 to 12 months so you can see how a delay eats the margin.
What if the house sells for less than the ARV?
Use the sale price sensitivity table. A 5% lower sale price on a 300,000 home removes 15,000 before selling costs are even recalculated, which can wipe out the profit on a thin deal.
How do I find the break-even sale price?
It is the sale price at which profit is zero after selling costs. This calculator shows it in the results so you know how far prices can fall before you lose money.
Should I include taxes in a flip analysis?
Yes. Profit from a flip is usually taxed as ordinary income in the United States, and rules differ elsewhere. The optional tax rate gives a rough after-tax profit, but ask a tax professional for your situation.
Can I use this for a rental conversion or BRRRR?
No. This tool models a sale. For buy-rehab-rent-refinance deals use the BRRRR calculator on this site, and for long-term rentals use the rental property cash flow calculator.
Can I save or print the analysis?
Yes. Use Print / save as PDF to print only the flip report, download a CSV, or copy a text summary. Nothing is uploaded.
Is the flip calculator free, and is my data private?
It is free to use with no sign-up. The numbers stay in your browser and are not sent to a server or stored.
Sources and further reading
- Common investor guidance on the 70% rule and maximum allowable offer in house flipping.
- Consumer Financial Protection Bureau: explanations of closing costs and mortgage-related fees.
- Standard real estate investment analysis texts on return on investment and holding costs.
- Hard money lender published terms (points, interest-only loans and draw schedules); terms vary and should be confirmed with the lender.
Sources were consulted in October 2026. Standards and rules can change, so always check the official page for your situation.