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House Flipping Calculator

Calculate fix and flip profits, ROI, and verify the 70% rule. Analyze your house flipping deal with detailed cost breakdown.

📊 Deal Analysis

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+10% contingency will be added automatically

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💰 Financing

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70% Rule: FAIL

Max Purchase: $0

You're paying $150,000 over the recommended price

Net Profit

$0

ROI

0.0%

Cash Needed

$0

Deal Rating:🔴 Poor (0.0% ROI)

📋 Cost Breakdown

Purchase Price$150,000
+ Buying Costs (3%)$0
+ Rehab (+10% contingency)$0
+ Holding Costs (4 mo)$0
+ Selling Costs (8%)$0
Total Investment$0
Sale Price (ARV)$250,000
NET PROFIT$0

📊 70% Rule Quick Reference

Maximum purchase price based on ARV and estimated rehab costs

ARVRehab CostsMax Purchase (70%)Est. Profit*
$200,000$30,000$110,000$20,000 - $40,000
$250,000$40,000$135,000$25,000 - $50,000
$300,000$50,000$160,000$30,000 - $60,000
$400,000$60,000$220,000$40,000 - $80,000
$500,000$75,000$275,000$50,000 - $100,000
$600,000$90,000$330,000$60,000 - $120,000

* Estimated profit assumes buying at 70% rule price with typical holding and selling costs. Actual results vary.

📐 The 70% Rule Explained

Max Purchase = (ARV × 70%) - Repair Costs

The 30% margin covers: closing costs, holding costs, selling costs, and your profit.

Example

ARV = $300,000, Repairs = $50,000 → Max Purchase = ($300,000 × 70%) - $50,000 = $160,000

Note

In competitive markets, some investors adjust to 75-80%, but this increases risk. Beginners should stick to 70% or lower.

🔧 Rehab Cost Guide

Light Rehab$15-$30/sq ft

Cosmetic updates: paint, flooring, fixtures, landscaping

Medium Rehab$30-$60/sq ft

Kitchen/bath remodel, HVAC, electrical updates, roof repair

Heavy Rehab$60-$100+/sq ft

Structural work, foundation, full gut renovation, additions

💡 Always add 10-20% contingency for unexpected issues

💡 Flip Success Tips

Buy Right: Profit is made at purchase

Know ARV: Study comps within 0.5 miles

Move Fast: Time = money in holding costs

Build Team: Reliable contractors are key

Keep Reserves: 20-30% for surprises

📈 ROI Guidelines

💎 Excellent25%+
🟢 Good15-25%
🟡 Fair10-15%
🔴 Poor<10%

Frequently Asked Questions

The 70% rule is a guideline that states investors should pay no more than 70% of a property's After Repair Value (ARV) minus repair costs. For example, if a home's ARV is $300,000 and needs $50,000 in repairs, the maximum purchase price should be ($300,000 × 70%) - $50,000 = $160,000. The 30% margin covers holding costs, selling costs, and profit.

House flip profit = Sale Price - (Purchase Price + Buying Costs + Rehab Costs + Holding Costs + Selling Costs). Buying costs include closing costs and inspections (2-5% of purchase). Holding costs include mortgage interest, taxes, insurance, and utilities. Selling costs include agent commission and closing costs (6-9% of sale price).

Flipping a 2,000 sq ft house typically costs $30,000-$120,000+ for renovations depending on the scope: Light rehab ($15-30/sq ft) = $30,000-$60,000, Medium rehab ($30-60/sq ft) = $60,000-$120,000, Heavy rehab ($60-100/sq ft) = $120,000-$200,000. Add 10-20% contingency for unexpected issues.

Most experienced flippers target 15-25% ROI to justify the time, effort, and risk. ROI below 10-15% may not be worth pursuing. Excellent deals can achieve 25-35%+ ROI. Remember that ROI doesn't account for your time investment—if a flip takes 200 hours and nets $40,000, that's $200/hour for your work.

Most house flips take 3-6 months from purchase to sale. Timeline breakdown: Finding/closing on property (1-2 months), Renovations (1-3 months), Listing and selling (1-2 months). Every extra month increases holding costs by $1,000-$3,000+, so speed is critical for profitability.

An LLC is not legally required but highly recommended. Benefits include: liability protection (personal assets are protected), tax advantages, professional credibility, and easier access to financing. Most successful flippers operate through an LLC. Consult with a real estate attorney and accountant for your specific situation.

🏠 Disclaimer: This calculator provides estimates for educational purposes only. Actual profits depend on market conditions, accurate ARV assessment, rehab quality, and many other factors. Always conduct thorough due diligence and consult with real estate professionals before making investment decisions.