Free House Flipping Calculator

Analyze the profitability of a house flip including purchase price, rehab costs, holding costs, selling costs, and projected profit.

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Net Profit

$34,000

Return on Investment12.7%
Total Investment$267,000
Total Selling Costs$19,000
Total Holding Costs$12,000
Profit Margin (% of ARV)10.6%

Net Profit vs Holding Period

House Flip Profitability Analysis

Flipping houses requires careful analysis of all costs to ensure profitability. Many new flippers underestimate holding costs and selling costs.

Profit Formula

Net Profit = ARV - Purchase Price - Rehab - Closing Costs (buy & sell) - Holding Costs - Commission

Cost Categories

  • Acquisition: Purchase price + closing costs + inspection
  • Rehabilitation: Materials, labor, permits, contingency
  • Holding costs: Loan payments, insurance, taxes, utilities, HOA
  • Selling costs: Agent commission, closing costs, staging
  • Rules of Thumb

  • 70% Rule: Maximum purchase = ARV x 70% - Rehab costs
  • Target minimum profit of $25,000-$30,000 per flip
  • Budget 10-20% contingency on rehab costs
  • Expect 4-8 months total timeline
  • Example Calculation

    Buy at $200,000, rehab $50,000, sell at ARV $320,000. 6-month hold at $2,000/month. Buy closing $5,000, sell at 5% commission + $3,000.

    1. 01Total holding costs: $2,000 x 6 = $12,000
    2. 02Total investment: $200,000 + $50,000 + $5,000 + $12,000 = $267,000
    3. 03Selling commission: $320,000 x 5% = $16,000
    4. 04Total selling costs: $16,000 + $3,000 = $19,000
    5. 05Total cost: $267,000 + $19,000 = $286,000
    6. 06Net profit: $320,000 - $286,000 = $34,000
    7. 07ROI: $34,000 / $267,000 = 12.7%
    8. 08Profit margin: $34,000 / $320,000 = 10.6% of ARV

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