House Flipping Calculator: Estimate Your Profit Before You Buy

Most failed flips weren't failed because something went wrong mid-project. They were doomed before the first offer was made because the numbers were wrong. Over-paying for the property, underestimating rehab, forgetting holding costs, not accounting for selling expenses — any one of these can turn a "great deal" into a breakeven or loss.

The CalcHub House Flipping Calculator walks through all the cost categories so you know your projected profit before you're committed.

The Flip Profit Formula

Profit = ARV − Purchase Price − Rehab Costs − Holding Costs − Financing Costs − Selling Costs

Each piece matters:

ARV (After Repair Value): What the property will sell for once renovated. This is the foundation. Get comps from a local agent on fully renovated homes similar to your target. Purchase price: What you pay. Most experienced flippers use the 70% rule as a starting point. Rehab costs: Materials + labor. Always get contractor estimates. Add a 10–15% buffer. Holding costs: What it costs to own the property during the renovation period. Financing costs: If using hard money or private lending, this is significant. Selling costs: Agent commission + closing costs on the sell side.

The 70% Rule

A common quick-calculation rule: Don't pay more than 70% of ARV minus rehab costs.

Maximum Purchase Price = (ARV × 0.70) − Rehab Costs

For an ARV of $350,000 with $50,000 in needed repairs:
($350,000 × 0.70) − $50,000 = $245,000 − $50,000 = $195,000 max purchase price

The 70% leaves room for holding costs, financing, and profit. In competitive markets some investors use 75–80%, which compresses profit margin.

Full Cost Breakdown Example

Cost Category	Example	Notes
Purchase price	$195,000	Per 70% rule above
Rehab costs	$50,000	Full gut kitchen, 2 baths, flooring
Holding costs (5 months)	$6,500	Taxes, insurance, utilities
Hard money financing (10%, 6 mo)	$12,000	On $195K loan
Selling costs (7%)	$24,500	Commission + closing
Total Costs	$288,000
ARV	$350,000
Projected Profit	$62,000	18% return

That 18% sounds good until you realize it took 5–6 months of active work. Annualized, it's better, but factor in your time.

Holding Costs — The Silent Profit Killer

New flippers routinely underestimate how long projects take. A 3-month renovation becomes 5 months. Every extra month costs you:

Monthly Holding Cost	Typical Amount
Hard money interest	$1,500–$3,000
Property taxes (prorated)	$300–$800
Homeowner's insurance	$100–$200
Utilities (heat, electricity)	$150–$300
Lawn/maintenance	$100–$200
Monthly total	$2,150–$4,500

Two extra months at $3,000/month = $6,000 less profit. Scope creep is expensive.

Rehab Cost Estimating Rules of Thumb

Scope	Cost Range (per sqft)
Cosmetic only (paint, carpet, fixtures)	$15–$30
Mid-level (kitchen and baths, flooring)	$40–$75
Full gut renovation	$80–$150+
Structural + systems (foundation, roof, plumbing, electric)	$100–$200+

Always get real contractor bids before committing. Rules of thumb are for pre-screening only.

How many flips do people typically do before being profitable?

The learning curve is real. Most successful flippers say their first 1–2 projects barely broke even due to cost overruns and misjudging ARV. The systems and relationships you build with contractors and lenders are what make subsequent flips more profitable.

Is hard money really necessary for flipping?

Not strictly — some flippers use home equity lines, private investors, or cash. Hard money is expensive (10–14% + points) but closes fast and doesn't require traditional income documentation. The speed advantage matters in competitive markets where cash offers win.

What's a realistic profit target per flip?

Experienced flippers often target $25,000–$60,000 per flip. Less than $20,000 and the risk/effort ratio becomes questionable. The specific number depends on your market, project scale, and how much of the work you're doing yourself.

Related Tools

• Renovation ROI Calculator — specific renovation value analysis
• Property Value Calculator — estimate ARV using comps
• Closing Costs Calculator — estimate selling costs accurately