Investing
House Flipping Calculator
Flips fail on the costs nobody photographs — the six months of taxes, insurance, utilities and loan interest while the work drags on. This totals every one of them against a realistic sale price.
Tested against worked examplesHow we verify
Taxes, insurance, utilities, HOA — everything that runs while you own it.
What it realistically sells for finished — use recent comparable sales, not hope.
Agent commission, transfer taxes, concessions.
Hard-money points and interest paid over the hold.
Projected profit: $52,600
Projected profit
$52,600
After every cost and the sale.
Your purchase price is above the 70% rule ceiling. Experienced flippers treat that line as the margin that absorbs surprises — cost overruns, a slower sale, a softer market — rather than as a target to beat.
- Return on total cost
- 19.7%
- All-in cost
- $267,000
- Selling costs
- $20,400
- 70% rule ceiling
- $188,000
70% of ARV minus rehab — the classic maximum offer.
Compare scenariosTry three values of one input
| Purchase price | |||
|---|---|---|---|
| Projected profit | $72,600 | $52,600−$20,000 | $32,600−$40,000 |
| Return on total cost | 29.39% | 19.7%−9.69% | 11.36%−18.03% |
| All-in cost | $247,000 | $267,000+$20,000 | $287,000+$40,000 |
Every other input stays at the value you set above — currently $200,000 for purchase price. Differences are measured against the first column.
Saved scenariosSave this calculation
Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.
How this calculator works
All-in cost = purchase + rehab + (monthly holding × months) + financing. Selling costs = ARV × the rate you set. Profit = ARV − selling costs − all-in cost, and return on cost divides profit by the all-in figure. The 70% ceiling is ARV × 0.7 − rehab.
Return on cost is not annualised, so a six-month flip and a two-year flip showing the same percentage are not equally good. The model assumes the ARV is achieved and excludes taxes on the profit.
What this assumes
- Renovation cost and after-repair value as entered. Both are estimates, and overruns are the norm rather than the exception.
- Holding costs — mortgage interest, taxes, insurance, utilities — accrue for the months entered and are the cost most often underestimated.
- Profits are taxed as ordinary income if held under a year, not at capital gains rates.
What changes this number
- After-repair value
- The whole thesis. Overestimating it by 5% can erase the entire margin.
- Holding time
- Every extra month adds financing and carrying costs while adding nothing to value.
- Renovation overruns
- Budget contingency is not optional; the question is only how much.
A worked example
Take the $200k buy, $50k rehab, $340k arv scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- Purchase price
- $200,000
- Rehab budget
- $50,000
- Months held
- 6 months
- After-repair value
- $340,000
What it returns
- Projected profit
- $52,600
- Return on total cost
- 19.7%
- All-in cost
- $267,000
- Selling costs
- $20,400
- 70% rule ceiling
- $188,000
Your purchase price is above the 70% rule ceiling. Experienced flippers treat that line as the margin that absorbs surprises — cost overruns, a slower sale, a softer market — rather than as a target to beat.
Try an example
Frequently asked questions
What is the 70% rule?
A screening shortcut: pay no more than 70% of the after-repair value minus the rehab budget. On a $340,000 ARV with $50,000 of work, that caps the offer at $188,000. The 30% buffer is not profit — it absorbs selling costs, holding costs, financing, and the overruns that arrive uninvited.
What do people underestimate most?
Time. Every extra month is another mortgage payment, tax accrual, insurance premium, and utility bill on a house producing no income. Permits slip, contractors disappear, and a listing can sit. Doubling your instinct for the timeline is closer to honest than optimistic.
How is flip profit taxed?
Usually as ordinary income, not capital gains — the IRS generally treats frequent flipping as a business, so profits face income tax and often self-employment tax too. This calculator shows pre-tax profit; talk to an accountant before assuming the long-term capital gains rate applies.
Does this include my own labour?
No. If you do the work yourself, the rehab figure covers materials but your hours are free in this model — which flatters the return. Value your time honestly before comparing a flip against a passive investment.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.