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House Flipping Profit Calculator

Reviewed by the CalculatorHub team, edited by James Graham. Uses standard fix-and-flip cost accounting. Last verified 14 June 2026.

A successful house flip requires accurate cost accounting before you make an offer. This calculator totals all acquisition costs, renovation costs, holding (carrying) costs, and selling costs to show your projected net profit and return on investment. Use the 70% rule field to quickly check if your purchase price is within the guideline threshold given your estimated after-repair value and renovation budget.

Price paid to acquire the property
Title, escrow, transfer taxes on purchase (typically 2 to 5%)
Total materials and labor for repairs and improvements
Monthly mortgage, taxes, insurance, utilities during hold
Estimated months from purchase to resale closing
Expected selling price after all repairs are complete
Total agent commission on sale (typically 5 to 6%)
Transfer taxes, title, staging, other selling expenses
$207,500.00
$42,500.00
20.48%
$135,000.00

House flipping profit formula

Net Profit = Sale Price - Purchase Price - Purchase Closing Costs - Renovation Costs - Carrying Costs - Selling Costs

ROI (%) = Net Profit / Total Costs x 100

70% Rule Max Offer = (ARV x 0.70) - Renovation Costs

Total carrying costs = Monthly Carrying Costs x Holding Period (months). Selling costs include commission (Sale Price x Commission Rate) plus other closing expenses.

House flipping profit calculator: frequently asked questions

What costs should I include in a house flip budget?

A complete flip budget includes: purchase price, closing costs on purchase (2 to 5% of purchase price), renovation and material costs, carrying costs (mortgage interest, property taxes, insurance, utilities during holding period), selling costs (agent commissions at 5 to 6%, transfer taxes, title), and a contingency reserve of 10 to 20% of renovation costs.

What is the 70% rule in house flipping?

The 70% rule states that you should not pay more than 70% of the after-repair value (ARV) minus the estimated repair costs. Formula: Maximum Purchase Price = (ARV x 0.70) - Repair Costs. For example, if ARV is $300,000 and repairs are $50,000, the maximum offer is $160,000. This rule provides a buffer for profit and unexpected costs.

What is a good profit margin on a house flip?

A common target for house flippers is a net profit of $20,000 to $40,000 or more per flip, or a return on investment of 10 to 20%+ on total invested capital. Profit margins vary widely by market, experience, and deal quality. ATTOM Data Solutions (using public records) reports that the average gross flipping profit in the US has ranged from $60,000 to $80,000 in recent years, though net profit after all costs is lower.

How long should a house flip take?

Most successful flips take 3 to 6 months from purchase to closing of the resale. Longer holding periods increase carrying costs (mortgage interest, taxes, insurance) and reduce profit. The carrying cost per month directly reduces your bottom line, so speed of execution is a key variable in flip profitability.

Are house flipping profits taxable?

Yes. If you hold the property for less than one year, profits from a house flip are taxed as short-term capital gains at your ordinary income tax rate. If held for more than one year, long-term capital gains rates apply (0%, 15%, or 20% depending on your income). Flipping as a business may also be subject to self-employment tax. Consult a tax professional.

Official sources

Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.