House Flipping Calculator

What is a house flip calculator?

A house flip calculator estimates whether a renovation-and-resale project may make money. This fix and flip calculator uses the after-repair value (ARV), purchase price, rehab budget, financing and project costs to estimate profit and return on cash invested.

It also applies the 70% rule to estimate a maximum offer. In this calculator, maximum offer equals ARV multiplied by the rule percentage, minus the rehab budget. The result is a screening estimate, not a guarantee that a property will sell for the ARV or that the project will stay on budget.

Why a house flip calculator matters

A property can appear profitable when you compare its purchase price with its expected resale price. But repairs, loan interest, taxes, insurance, utilities, buying closing costs and selling costs all reduce the amount left over. Estimating those costs helps you decide what to offer and whether the deal fits your cash and risk limits.

A calculator also lets you test changes before you buy. You can see how a lower offer, a larger rehab budget, a longer time to sell or different financing assumptions affect the estimate. Use the result alongside property inspections, contractor quotes and local comparable sales. Confirm financing terms with your lender, and ask a tax professional how a flip may affect your tax situation.

How to use this house flip calculator

1. Enter the ARV: your estimate of the property’s sale price after repairs. Base it on comparable properties and adjust for differences in condition, location and features.
2. Enter the purchase price and a rehab budget based on the work you expect to do. Include contractor estimates and materials, and account for work that could be uncovered after renovations begin.
3. Choose the maximum offer rule percentage. The 70% rule is one screening method, not a required offer or a guarantee of profit.
4. Enter your down payment, loan rate and expected months to finish and sell. Use the financing terms you expect to receive, and update them if your lender gives you different terms.
5. Add monthly taxes, insurance and utilities, plus buying closing costs and selling costs. Check whether your estimates include charges such as agent commissions or other transaction fees.
6. Review estimated profit, return on cash invested and maximum allowable offer. Change one assumption at a time to see which costs have the greatest effect.

House flip calculator example

How to read your house flip calculator results

Estimated profit is the ARV minus the purchase price, rehab budget, holding costs, buying closing costs and selling costs. It is a projection based on the figures you enter, not a promised outcome. If a cost is missing or the sale price is lower than your ARV estimate, the actual profit may be lower.

Return on cash invested expresses estimated profit in relation to the cash the calculator treats as invested. Compare it with your available cash and with the risks of the project. A higher percentage does not by itself mean the project is safer or that the estimate is more reliable. The maximum allowable offer is a separate screening figure based on the rule percentage and rehab budget. It does not include every possible project constraint.

How to improve a fix-and-flip deal

1. 01

   Verify the ARV

   Compare the property with recently sold homes that match its location, size and planned finished condition. If the evidence does not support your estimate, lower the ARV in the calculator and reassess the offer.

2. 02

   Get detailed rehab estimates

   Ask contractors to break estimates into specific work and materials. Check quotes against the inspection, and update the rehab budget when the scope changes rather than relying on an early rough estimate.

3. 03

   Reduce the purchase price or transaction costs

   Use inspection findings and documented repair costs when negotiating. Ask your lender, closing provider and selling agent to explain their charges so you can compare terms and avoid overlooking costs.

4. 04

   Limit the time you carry the property

   Plan the renovation sequence, confirm material availability and prepare the listing before work is complete. A shorter project can reduce monthly holding expenses, but do not rush work that affects quality or resale.

5. 05

   Test financing assumptions

   Ask your lender to confirm the rate, down payment and fees that apply to the project. Enter the updated terms and compare the result before committing.

Common house flipping calculator mistakes

• Treating the 70% rule as a guarantee

  The rule gives a maximum-offer estimate using ARV and rehab costs. It does not prove that a property will sell at the expected price or cover all of your expenses.

• Using an optimistic ARV

  A finished property may not match the condition or features of your comparable sales. Use realistic comparisons and test a lower sale-price assumption.

• Leaving out costs

  Include the costs shown in the calculator and check for project expenses not represented by your entries, such as permits, loan fees, unexpected repairs or staging. Do not assume an omitted cost is included.

• Confusing profit with cash return

  Profit is the estimated amount left after listed costs. Return on cash invested relates that profit to the cash investment used in the estimate. Review both and confirm how the calculator treats financing and cash invested before relying on the return figure.

The house flip formula

Key terms

After-repair value (ARV)

The estimated sale price of a property after planned repairs and renovations.

Holding costs

Costs of owning the property while it is being renovated and prepared for sale, including the interest, taxes and utilities represented in the calculator.

Maximum allowable offer

The offer limit estimated by multiplying ARV by the chosen rule percentage and subtracting the rehab budget.

Return on cash invested

Estimated profit expressed in relation to the cash investment used by the calculator.