House Flip Deal Analyzer
Purchase & Repairs
Holding & Transaction Costs
The 70% Rule Analysis
Cost Breakdown
Revenue & Profit
Visual Cost Breakdown
House Flipping: A Complete Guide
House flipping involves purchasing a property below market value, renovating it to increase its value, and then selling it for a profit. While it can be highly profitable, it carries significant financial risk. This calculator helps you analyze deals before committing your capital.
How This Calculator Works
The calculator takes your purchase price, estimated repair costs, holding costs, and transaction fees to determine your total investment. It then compares this against your expected selling price to calculate net profit, ROI (return on investment), and profit margin. The 70% rule analysis provides a quick benchmark to see if your deal falls within accepted guidelines.
Understanding the 70% Rule
The 70% rule is the most widely used guideline in house flipping. It states:
Maximum Purchase Price = ARV × 70% − Repair Costs
The 30% buffer accounts for closing costs, holding costs, agent commissions, and a reasonable profit margin. For example, if a property will be worth $300,000 after repairs (ARV) and needs $40,000 in renovations, you should pay no more than $170,000 ($300,000 × 0.70 − $40,000). In competitive markets, some investors use 75% instead, but this leaves a thinner margin for error.
Common House Flipping Costs
| Cost Category | Description | Typical Range |
|---|---|---|
| Kitchen Renovation | Cabinets, countertops, appliances, flooring | $15,000 - $45,000 |
| Bathroom Renovation | Fixtures, tile, vanity, plumbing | $8,000 - $25,000 |
| Flooring | Hardwood, LVP, tile throughout | $5,000 - $15,000 |
| Roof Replacement | Full tear-off and replacement | $8,000 - $20,000 |
| HVAC System | New furnace and/or AC unit | $5,000 - $12,000 |
| Painting (Interior) | Full interior paint, trim, ceilings | $3,000 - $8,000 |
| Landscaping | Curb appeal, lawn, plants, walkways | $2,000 - $10,000 |
| Closing Costs (Buy) | Title, escrow, inspections, origination | 1% - 3% of purchase |
| Closing Costs (Sell) | Title, escrow, transfer taxes | 1% - 3% of sale |
| Agent Commission | Listing agent + buyer agent | 5% - 6% of sale |
| Hard Money Loan | Interest + points on short-term loan | 10% - 15% APR + 1-3 points |
| Insurance | Builder's risk or vacancy policy | $100 - $300/month |
| Utilities | Electric, water, gas during rehab | $150 - $400/month |
| Property Taxes | Prorated during holding period | $200 - $800/month |
Key Metrics Explained
- Total Investment: The sum of purchase price, repair costs, holding costs, closing costs, and agent commissions. This is the total capital required to complete the flip.
- Net Profit: Selling price minus total investment. This is the actual money you take home (before taxes).
- Return on Investment (ROI): Net profit divided by total investment, expressed as a percentage. A higher ROI means better returns relative to your capital.
- Profit Margin: Net profit divided by the selling price, expressed as a percentage. This shows what portion of the sale price is actual profit.
Tips for Successful House Flipping
- Always overestimate repair costs by 10-20%. Unexpected issues like mold, foundation problems, or outdated wiring are common in older homes.
- Minimize holding time. Every month you hold the property costs money. Have contractors lined up before closing.
- Know your market. Research comparable sales (comps) thoroughly to set a realistic ARV. Overestimating ARV is the most common mistake.
- Build in a margin of safety. If the deal only works with everything going perfectly, it is too risky. Use the 70% rule as your guardrail.
- Account for all costs. Many new flippers forget holding costs, permits, dumpster rentals, staging, and photography.
- Have an exit strategy. If the property does not sell at your target price, can you rent it and still break even?
Privacy & Limitations
- All calculations run entirely in your browser -- nothing is sent to any server.
- Results are estimates for planning purposes and should not replace professional financial advice.
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House Flip Calculator FAQ
What is the 70% rule in house flipping?
The 70% rule is a guideline used by house flippers to determine the maximum purchase price for a property. It states that an investor should pay no more than 70% of the After Repair Value (ARV) minus the cost of repairs. For example, if a home's ARV is $300,000 and it needs $40,000 in repairs, the maximum offer should be $300,000 x 0.70 - $40,000 = $170,000. The remaining 30% covers closing costs, holding costs, agent commissions, and profit margin.
How do you calculate profit on a house flip?
To calculate house flip profit, subtract all costs from the selling price. Total costs include: purchase price, repair/renovation costs, holding costs (mortgage, insurance, utilities, taxes during the holding period), buying closing costs, selling closing costs, and real estate agent commissions. Profit = Selling Price - Purchase Price - Repairs - Holding Costs - Closing Costs - Agent Commission.
What is a good ROI for a house flip?
Most experienced flippers aim for a minimum ROI of 10-20% on their total investment, though returns vary significantly by market and deal. Many flippers target a net profit of at least $25,000-$50,000 per flip to justify the time and risk involved. The average gross profit on a flip in the US is around $65,000-$70,000, but this varies by location, property type, and market conditions.
What are typical holding costs for a house flip?
Typical holding costs include: mortgage or hard money loan payments ($1,000-$3,000+/month depending on loan size and interest rate), property insurance ($100-$300/month), property taxes ($200-$800/month depending on location), utilities ($150-$400/month), and possibly HOA fees. Total holding costs typically range from $1,500 to $4,500+ per month. Most flips take 3-6 months to complete.
What closing costs should I budget for when flipping a house?
When buying, expect closing costs of 1-3% of the purchase price, including title insurance, escrow fees, inspection fees, and loan origination fees. When selling, closing costs are typically 1-3% plus agent commissions of 5-6% of the sale price. Total transaction costs on both sides typically run 8-12% of the deal value. These costs significantly impact profitability and should be carefully estimated.
How long does a typical house flip take?
A typical house flip takes 3 to 6 months from purchase to sale. Light cosmetic flips may be completed in 2-3 months, while major renovations can take 6-12 months. The timeline includes acquisition (2-4 weeks), renovation (1-4 months), listing and selling (1-3 months). Longer holding periods increase costs and reduce ROI, so experienced flippers minimize renovation time.
Does this calculator store my data?
No. All calculations run entirely in your browser using JavaScript. No data is sent to any server, and nothing is stored or tracked.