House Flipping Calculator: Estimate Profit Before You Buy
A house flipping calculator estimates your net profit on a fix-and-flip deal before you make an offer. It takes five core inputs — ARV, purchase price, repair costs, holding costs, and selling costs — and tells you whether the numbers work. Running these calculations before every offer prevents the most expensive mistake in flipping: buying a property that does not have enough margin.
The flip profit formula
Net Profit = ARV − Purchase Price − Repairs − Holding Costs − Selling Costs − Financing Costs
Each of these components needs accurate estimation. Let us walk through them one by one.
Component 1: After repair value (ARV)
What the property will sell for after renovation. Calculate using comparable sales of renovated homes in the same area. This is the most important number and the one most often overestimated. See our ARV calculation guide.
Component 2: Purchase price
What you are paying the seller. As a flipper, you need to buy at a discount to ARV that leaves room for all costs plus your target profit. The 70% rule provides a starting framework: pay no more than 70% of ARV minus repairs.
Component 3: Repair costs
The total cost to renovate the property to the level your ARV comps reflect. Major categories:
| Category | Cosmetic Flip | Full Renovation |
|---|---|---|
| Kitchen | $5,000-$10,000 | $15,000-$35,000 |
| Bathrooms (each) | $2,000-$5,000 | $8,000-$15,000 |
| Flooring (whole house) | $3,000-$8,000 | $8,000-$15,000 |
| Paint (interior + exterior) | $3,000-$6,000 | $5,000-$10,000 |
| Roof | N/A | $8,000-$15,000 |
| HVAC | N/A | $5,000-$10,000 |
| Foundation | N/A | $5,000-$25,000+ |
| Landscaping | $1,000-$3,000 | $3,000-$8,000 |
Always add a 10-15% contingency for unexpected issues. See our guide on rehab cost per square foot.
Component 4: Holding costs
Holding costs are the expenses you pay every month while you own the property:
- Financing costs — interest on hard money or private money loans (10-15% annualized)
- Property taxes — prorated monthly
- Insurance — builder's risk or vacancy policy
- Utilities — electric, water, gas during renovation
- HOA fees — if applicable
Typical monthly holding costs for a $180,000 flip:
Hard money interest (12%, interest-only on $150,000 loan): $1,500/mo
Property taxes: $375/mo
Insurance: $150/mo
Utilities: $200/mo
Total: $2,225/month
Over 5 months: $11,125
Every month of delay costs $2,225. This is why speed matters in flipping — a 3-month flip versus a 6-month flip can differ by $6,675 in holding costs alone.
Component 5: Selling costs
The costs to sell the finished product:
- Agent commission — 5-6% of sale price (split between listing and buyer's agent)
- Closing costs — 1-2% (title, escrow, recording, transfer taxes)
- Buyer concessions — 0-3% (closing cost assistance, repairs from inspection)
Budget 8-10% total for selling costs. On a $220,000 ARV, that is $17,600-$22,000.
Complete worked example
Property: 3BR/2BA, 1,600 sqft
ARV: $220,000
Purchase price: $145,000
Repairs: $38,000 (including 10% contingency)
Holding costs (5 months): $11,125
Selling costs (8%): $17,600
Hard money points (3 points on $120,000 loan): $3,600
Net profit: $220,000 − $145,000 − $38,000 − $11,125 − $17,600 − $3,600 = $4,675
ROI on cash invested: $4,675 ÷ $63,000 (down payment + repairs) = 7.4%
$4,675 net profit on 5 months of work is not compelling. To make this deal work, you would need either a lower purchase price (below $130,000), lower repairs, faster execution (reducing holding costs), or confirmation the ARV is higher.
Minimum profit target: Most experienced flippers require $25,000-$30,000 minimum net profit per flip. Below that, the risk-reward ratio does not justify the work, capital, and exposure.