House Flipping Calculator
Enter purchase price, ARV, rehab budget, financing terms, holding costs, and selling expenses to see net profit, ROI on cash, profit margin, and an instant deal quality rating — with a full cost waterfall showing every dollar between buy and sell.
Quick preset
Purchase & ARV
Rehab
Transaction costs
Holding & timeline
Financing
Other
What to do next
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Step-by-step
What this calculator does
This house flipping calculator builds the full deal cost from the bottom up — purchase and closing, rehab plus contingency, holding costs, financing (interest + points), and selling costs — then subtracts the total from ARV to estimate net profit. The waterfall makes it immediately visible which cost category is consuming the most margin.
ROI is calculated on actual cash invested (not total project cost), which is the number that matters for investors using leverage. Deal quality is rated against four thresholds: Strong (ROI ≥ 30% + margin ≥ 12%), Solid (ROI ≥ 18% + margin ≥ 8%), Borderline (ROI ≥ 10% + margin ≥ 4%), or Weak/Negative.
Formulas used
Purchase + Buy Closing + Rehab + Contingency
+ Holding + Interest + Loan Points + Sell Costs + Other
Loan Amount = (Purchase + Rehab) × LTC%
Interest = Loan × Annual Rate × (Months ÷ 12)
Loan Points = Loan × Points%
Net Profit = ARV − Total Project Cost − Tax Reserve
Cash Invested = Down payment + all out-of-pocket costs
ROI = Net Profit ÷ Cash Invested × 100
Margin = Net Profit ÷ ARV × 100
How to use
- Select a preset or enter your own purchase price and ARV. ARV should reflect a conservative resale estimate, not best-case.
- Enter rehab budget and contingency %. Most experienced flippers add 10–15% contingency for hidden issues and scope changes.
- Fill in transaction costs — buy closing typically 1–3%, sell side (agent + title + concessions) typically 7–10%.
- Enter the realistic holding period in months and monthly carrying costs.
- Add financing details — hard money loans typically run 9–13% annually with 1–3 points.
- Click Calculate — the waterfall shows every cost; the badge shows deal quality instantly.
Example calculations
80% LTC @ 10% + 2pts · Sell 8%
Net profit: $7,400 · ROI: 9.6%
Margin: 2.3% → Weak (thin on selling costs)
85% LTC @ 11% + 2.5pts · Sell 8%
Net profit: −$27,585 · ROI: −37.7%
→ Negative deal — financing + time kills it
75% LTC @ 9.5% + 2pts · Sell 8%
Net profit: $43,403 · ROI: 51.2%
Margin: 12.8% → Strong deal
80% LTC @ 11.5% + 3pts · Sell 8.5%
Net profit: $2,020 · ROI: 2.0%
→ Weak deal — long hold + heavy costs eat margin
FAQ
What is a good ROI for a house flip?
Most experienced investors look for at least 15–20% ROI on cash invested and a profit margin of 8–12% of ARV as minimum thresholds before accounting for risk. Below 10% ROI leaves very little buffer for overruns, a softer sale price, or unexpected delays. The thresholds in this calculator (Strong ≥ 30% ROI + 12% margin, Solid ≥ 18% + 8%) reflect common deal-screening standards, but individual targets vary by market and risk tolerance.
What is ARV and how do I estimate it?
After Repair Value is the expected market price of the property after renovation is complete. The most reliable method is pulling comparable sales (comps) within 0.5–1 mile, similar square footage and condition, sold in the last 90–180 days. Conservative flippers target an ARV that could withstand a 5–10% market softening and still leave adequate margin. Never use best-case comps as your ARV.
Why include rehab contingency?
Rehab budgets almost always move. Hidden structural damage, permit delays, scope changes requested by buyers, and contractor surprises are normal in renovation projects. A 10–15% contingency is industry standard. Without it, a single unexpected cost category can eliminate the entire projected profit on a thin deal.
What should I include in sell-side closing costs?
Typical sell-side costs include buyer's agent commission (2.5–3%), listing agent commission (2.5–3%), title insurance, escrow and settlement fees, transfer taxes, and any buyer concessions (repairs or closing cost credits). In most US markets, total sell-side costs run 7–10% of the sale price — which is why this field defaults to 8%. Underestimating this single number is one of the most common flip analysis errors.
How is cash invested calculated?
Cash invested = down payment (purchase + rehab − loan amount) + all out-of-pocket costs that are not covered by the loan: buy closing costs, rehab contingency, holding costs, loan points, and other fixed costs. This is the actual capital at risk — the number used for ROI. It differs from total project cost because part of the project is financed.
Does this calculator include taxes accurately?
No. The tax reserve field is only a simple planning percentage applied to pre-tax profit. Real taxes on a flip depend on entity structure (LLC, S-corp, personal), holding period (short-term capital gains vs ordinary income), local state and city taxes, deductible costs, and your overall tax situation. Consult a real estate CPA for accurate tax planning.
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Disclaimer: This calculator provides planning estimates only and is not investment, tax, legal, or financial advice. Actual flip results vary with market conditions, final sale price, contractor costs, financing availability, appraisal, permit timelines, and local transaction costs. Always conduct full due diligence before committing to a real estate transaction.