Fix and Flip Profit Calculator
Profit after rehab, holding and selling costs.
Reviewed by the Calculation Machine team · Updated 24 October 2026 · How we check our maths
Your values
ⓘ Live results
- Net profit
- $28,950.00
- Return on cost
- 9.3%
- Annualised return
- 18.6%
- Maximum offer by the 70% rule
- $180,000.00
- Financing interest
- $12,650.00
- Holding costs
- $6,600.00
- Selling costs
- $23,800.00
- Break-even resale price
- $311,050.00
Quick answer
Fix-and-flip profit is the resale price (after-repair value, ARV) minus the purchase price, rehab, holding costs, loan interest and selling costs. Buying at $210,000, spending $58,000 on rehab and selling at $340,000 after six months leaves about $28,950 once $12,650 of interest, $6,600 of holding costs and 7% selling costs are paid. The 70% rule caps the offer at 70% of ARV minus rehab: $180,000 here.
What the Fix and Flip Profit calculator does
This calculator works out the net profit on a house flip before income tax, along with return on total cost, a simple annualized return, the break-even resale price and the maximum offer under the 70% rule. It is built for screening deals before you make an offer and for re-checking a project when the budget or timeline slips.
Interest is calculated as interest-only on the full loan amount for every month you hold the property, which matches how most hard-money and fix-and-flip loans are quoted. If your lender releases rehab funds in draws, actual interest will be a little lower. Buying closing costs and loan points are not separate inputs — add them to the purchase price so they are counted.
The resale price drives everything, so base it on recent sales of comparable renovated homes nearby, not on list prices. If you plan to keep the house as a rental instead of selling, the BRRRR calculator models the refinance route, and the home sale net proceeds calculator breaks down selling costs in more detail.
The formula
Interest = loan × rate ÷ 12 × months Total cost = purchase + rehab + monthly holding × months + interest + ARV × selling % Profit = ARV − total cost 70% rule maximum offer = 0.70 × ARV − rehab
| Symbol | Meaning | Unit |
|---|---|---|
| ARV | After-repair value: the expected resale price once work is done | $ |
| purchase | Price paid, plus buying closing costs and loan points if you want them counted | $ |
| rehab | Renovation budget including contingency | $ |
| monthly holding | Property tax, insurance, utilities and HOA dues while you own it | $/month |
| loan, rate | Amount borrowed and annual interest rate, interest-only | $, % |
| selling % | Agent commission, seller closing costs and transfer taxes as a share of sale price | % |
This is the standard deal-analysis method used by real estate investors and flip lenders. Return on cost divides profit by total cost, not by your own cash; with high leverage your cash-on-cash return is much higher (and so is the risk). The annualized figure scales the return by 12 ÷ months held without compounding. The 70% rule is an investor rule of thumb, not a standard, and many buyers use 65–75% depending on the market and price point.
Worked examples
Leveraged suburban flip
A $210,000 purchase with a $58,000 rehab, financed with a $230,000 loan at 11%, held six months at $1,100 a month and sold for $340,000 with 7% selling costs.
Inputs
- Purchase price210000 $
- Rehab cost58000 $
- Resale price (ARV)340000 $
- Months held6
- Monthly holding costs1100 $
- Loan amount230000 $
- Loan rate11 %
- Selling costs7 % of price
Result
- Net profit$28,950.00
- Return on cost9.3%
- Annualised return18.6%
- Maximum offer by the 70% rule$180,000.00
- Financing interest$12,650.00
- Holding costs$6,600.00
Profit is $28,950, a 9.3% return on total cost. The purchase was $30,000 over the 70% rule offer of $180,000, which is why the margin is thin; a two-month delay would add about $6,400 in interest and holding costs.
All-cash starter home
An investor pays $95,000 cash for a dated house, spends $35,000 on rehab, holds it five months at $650 a month and sells for $185,000 with 8% selling costs.
Inputs
- Purchase price95000 $
- Rehab cost35000 $
- Resale price (ARV)185000 $
- Months held5
- Monthly holding costs650 $
- Loan amount0 $
- Loan rate0 %
- Selling costs8 % of price
Result
- Net profit$36,950.00
- Return on cost25%
- Annualised return59.9%
- Maximum offer by the 70% rule$94,500.00
- Financing interest$0.00
- Holding costs$3,250.00
Profit is $36,950, a 25% return on cost. The price paid sits right at the 70% rule figure of $94,500, and with no loan there is no interest bill, so even a 10% rehab overrun would still leave a healthy profit.
High-end flip that loses money
A $420,000 purchase with a $110,000 rehab and a $470,000 loan at 12%, held nine months at $2,400 a month, selling for $610,000 with 6% selling costs.
Inputs
- Purchase price420000 $
- Rehab cost110000 $
- Resale price (ARV)610000 $
- Months held9
- Monthly holding costs2400 $
- Loan amount470000 $
- Loan rate12 %
- Selling costs6 % of price
Result
- Net profit-$20,500.00
- Return on cost-3.3%
- Annualised return-4.3%
- Maximum offer by the 70% rule$317,000.00
- Financing interest$42,300.00
- Holding costs$21,600.00
The flip loses $20,500: the break-even resale price is $630,500. Interest alone costs $42,300, and the 70% rule would have capped the offer at $317,000 — more than $100,000 below what was paid.
Costs flippers most often leave out
- Buying closing costs and loan fees: title, escrow, appraisal and lender points, often 2–5% of the loan or price. Add them to the purchase price.
- Rehab contingency: older houses hide wiring, plumbing and structural problems. Many investors add 10–20% to the contractor's bid.
- Extra months: permits, inspections and a slow sale stretch timelines. Every month adds both holding costs and interest.
- Seller concessions: buyers often ask for repair credits or help with closing costs after inspection, which come straight off your sale price.
- Tax: profit on a flip held under a year is generally taxed as ordinary income in the US, and frequent flippers may be treated as dealers subject to self-employment tax. This calculator shows profit before tax; ask a tax professional how yours will be treated.
Using the 70% rule as a filter
The 70% rule leaves about 30% of ARV to cover holding, financing and selling costs plus profit. It is a quick first screen, not a substitute for the full calculation.
| ARV | 70% of ARV | Maximum offer |
|---|---|---|
| $150,000 | $105,000 | $65,000 |
| $250,000 | $175,000 | $135,000 |
| $400,000 | $280,000 | $240,000 |
| $600,000 | $420,000 | $380,000 |
Stress-testing a flip before you offer
Run the deal three times: as planned, with the ARV 5% lower, and with rehab 20% higher and three extra months. If the pessimistic version still breaks even, the deal has a real margin of safety. Compare the break-even resale price with the lowest recent comparable sale — if they are close, you are betting on the market rather than on your renovation.
As a rough guide, many flippers want profit of at least 10% of ARV, or a fixed dollar amount that justifies months of work and risk. Compare the annualized return with alternatives using the ROI calculator.
How to use the Fix and Flip Profit Calculator
- 1Enter the purchase price, including buying closing costs and loan points if you want them counted.
- 2Enter the rehab budget from contractor bids plus a contingency of 10–20%.
- 3Enter the resale price (ARV) from recent sales of comparable renovated homes within about half a mile.
- 4Enter months held (purchase to sale closing), monthly holding costs, and the loan amount and annual rate; use 0 for a cash purchase.
- 5Enter selling costs as a percentage of the sale price, then compare the purchase price with the 70% rule maximum offer.
Frequently asked questions
How much profit should you make on a house flip?
Many investors look for at least 10–20% of the after-repair value or a minimum dollar figure such as $25,000–$30,000 per project. Lower margins leave little room for rehab overruns or a slower sale.
How do you calculate the 70% rule?
Multiply the after-repair value by 0.70 and subtract the rehab cost. For a $300,000 ARV and $50,000 rehab, the maximum offer is $210,000 − $50,000 = $160,000.
What are typical holding costs on a flip?
Property taxes, insurance (often a vacant or builder's-risk policy), utilities, HOA dues and lawn care. Divide the annual tax and insurance bills by 12 and add monthly utilities to estimate them.
What are typical selling costs when flipping a house?
Agent commissions, seller closing costs, transfer taxes and any concessions to the buyer. A combined 6–10% of the sale price is a common planning range, but commissions are negotiable and transfer taxes vary by state.
Is a house flip taxed as capital gains?
Usually not at long-term rates: a property held less than a year produces short-term gains, and regular flippers can be classed as dealers, making profit ordinary business income. Rules depend on your situation, so check with a tax adviser.
References
- Publication 544, Sales and Other Dispositions of Assets — Internal Revenue Service
- Uniform Residential Appraisal Report (Form 1004) — Fannie Mae
About this calculator
- Built and reviewed by the Calculation Machine team · How we build and test calculators
- Last reviewed: October 24, 2026
- Report an error