How to use this calculator
Enter the purchase price, your estimated renovation budget, and the after-repair value (ARV) based on comparable sales in the area. Adjust the financing terms to match your hard money lender or private financing arrangement. Add your monthly holding costs for taxes, insurance, and utilities.
The calculator shows your net profit, return on investment, and whether the deal passes the 70% rule, a widely used benchmark for evaluating flip profitability. Use the quick presets to explore different deal sizes.
Common house flip cost ranges
| Cost Category | Typical Range | Notes |
|---|---|---|
| Buying Closing Costs | 1 to 3% of purchase | Title, escrow, inspection |
| Hard Money Interest | 10 to 15% annual | Interest-only payments |
| Origination Points | 1 to 3 points | Paid upfront at closing |
| Renovation Budget | Varies widely | Get 3+ contractor bids |
| Contingency | 10 to 15% of rehab | For surprises behind walls |
| Monthly Holding | $500 to 2,000/mo | Taxes, insurance, utilities |
| Agent Commission | 5 to 6% of ARV | Buyer + seller agents |
| Seller Closing Costs | 1 to 3% of ARV | Title, transfer tax, escrow |
Frequently asked questions
What is the 70% rule in house flipping?
The 70% rule states that you should pay no more than 70% of a property's after-repair value (ARV) minus the cost of repairs. For example, if a home's ARV is $300,000 and it needs $50,000 in repairs, the maximum you should pay is ($300,000 x 0.70) - $50,000 = $160,000. This rule helps ensure enough profit margin to cover holding costs, selling costs, and unexpected expenses.
What is a good ROI on a house flip?
Most experienced flippers target a minimum ROI of 15-25% on their cash invested. A deal with less than 10% ROI is generally considered too risky given the work, capital, and uncertainty involved. The annualized ROI matters too, a 20% return in 3 months is much better than 20% over 12 months.
What costs are involved in flipping a house?
House flip costs include the purchase price, buying closing costs, financing costs (hard money interest and origination points), renovation and materials, a contingency budget, monthly holding costs (property taxes, insurance, utilities, loan payments), real estate agent commissions, and seller closing costs. Many beginners underestimate holding and financing costs.
How do you determine the after-repair value (ARV)?
The ARV is estimated by looking at comparable recently sold properties in the same neighborhood that are similar in size, age, and condition to what your property will look like after renovations. Look at homes sold within the last 3-6 months and within a half-mile radius. A local real estate agent or appraiser can provide a professional opinion on ARV.
What is hard money lending for house flips?
Hard money loans are short-term loans from private lenders designed for real estate investors. They typically have higher interest rates (10-15%) and charge origination points (1-3 points), but they close faster than traditional mortgages and are based on the property's value rather than the borrower's credit. Loan terms are usually 6-12 months, matching a typical flip timeline.