House Flip Profit & ROI Calculator
Estimate house-flip profit, ROI, and annualized return from purchase, renovation, holding, and selling costs versus the sale price. Runs in your browser.
Flip analysis
- Total invested (all-in)
- $357,000
- Selling costs
- $32,000
- Net profit
- $43,000
- ROI (on cost)
- 12.0%
- Annualized return (6 mo)
- 25.5%
Profit = sale − (purchase + reno + holding + selling costs). Holding costs include loan interest, taxes, insurance, and utilities while you own it — and reno almost always runs over and takes longer than planned. The 70% rule (offer ≤ 70% of ARV minus repairs) is a common safety margin. Annualized return shows the time-adjusted yield. Informational, not investment advice.
About this tool
A profitable house flip depends on getting all the costs right, not just the buy-low-sell-high spread. This calculator totals every cost — purchase price, renovation budget, holding costs (loan interest, property taxes, insurance, utilities while you own it) multiplied by the months held, and selling costs (agent commissions, closing) as a percentage of the sale price — and subtracts them from the sale price to give net profit. It then expresses the return as ROI on total cost and, importantly, as an annualized return, since a 15% profit in four months is very different from 15% over two years. Two realities it builds in: holding costs accrue every month, so delays directly eat profit, and renovation budgets famously overrun — pad them. Experienced flippers use the '70% rule' (pay no more than 70% of after-repair value minus repair costs) as a safety margin, which this tool helps you sanity-check. It excludes financing structure and taxes on the gain, which can be significant. It is informational, not investment advice. Everything runs in your browser.
How to use it
- Enter the purchase price and renovation budget.
- Enter monthly holding costs and how many months you'll hold.
- Enter the expected sale price (ARV) and selling-cost percentage.
- Read the net profit, ROI, and annualized return — pad reno and time estimates.
Frequently asked questions
- How is flip profit calculated?
- Sale price minus all costs: purchase + renovation + holding costs (monthly × months) + selling costs. What remains is gross profit before income taxes. Financing costs should be included in holding costs if you use a loan.
- What are holding costs?
- Everything you pay while you own the property before selling: loan interest, property taxes, insurance, utilities, HOA, and security. They accrue every month, so a flip that drags on can lose its profit to holding costs even if the sale price is good.
- What is the 70% rule?
- A flipper guideline: pay no more than 70% of the after-repair value (ARV) minus estimated repairs. On a $400k ARV with $60k repairs, that is 0.70 × 400k − 60k = $220k max purchase. It builds in margin for overruns and profit.
- Why show annualized return?
- Because time matters. A 15% ROI in 4 months annualizes to roughly 50%, while the same 15% over 18 months is about 10% annualized. Annualizing makes flips comparable to other investments and to each other.
- What does this leave out?
- Income taxes on the profit (flips are typically taxed as ordinary income / short-term gains, sometimes self-employment tax), the cost of financing structure beyond the holding figure, and contingencies. Renovation overruns and longer-than-planned timelines are the most common profit killers.
- Is this investment advice?
- No. It is an informational estimate. Flipping carries real risk; do thorough analysis and consult professionals.