What This Calculator Estimates
This calculator estimates your potential profit on a house flip by subtracting all-in costs — purchase, renovation, holding, and selling costs — from the expected resale value (ARV).
Formula / Method Used
Selling Costs = ARV × (Selling Cost % ÷ 100). Total Costs = Purchase Price + Renovation + Holding Costs + Selling Costs. Profit = ARV − Total Costs.
Worked Example
A $200,000 purchase with $40,000 renovation, $8,000 holding costs, and a $310,000 expected resale at 8% selling costs ($24,800) leaves an estimated profit of $37,200.
How to Interpret the Result
Compare estimated profit against your time investment and risk tolerance. Many flippers target at least 10-20% of ARV as profit margin to account for unexpected costs and market shifts.
Common Mistakes
- Underestimating renovation costs or overlooking permit fees.
- Ignoring holding costs on a longer-than-expected timeline.
- Using an overly optimistic ARV without solid comparable sales.
- Forgetting financing costs like loan points or interest.
Related Calculators
Investment Property Calculator · Mortgage Calculator · Closing Costs
Frequently Asked Questions
What does this flipping calculator estimate?
It estimates your potential profit on a house flip based on purchase price, renovation costs, holding costs, selling costs, and expected resale value.
What is the 70% rule in house flipping?
The 70% rule suggests paying no more than 70% of a property's after-repair value minus renovation costs, to leave room for profit and unexpected expenses.
What should I include in holding costs?
Include loan interest, property taxes, insurance, and utilities for the months you own the property before selling.
What are typical selling costs?
Selling costs typically include agent commissions and closing costs, often totaling 6-10% of the sale price.
Does this account for financing costs?
Include loan interest as part of your holding costs if you're financing the purchase or renovation.
Last updated: July 2026