Property Flip Profit Calculator
Estimate your profit, ROI, and annualized return from flipping a property.
How House Flipping Works
The 70% Rule
The 70% rule is the most widely used quick-filter in house flipping. It states: your maximum purchase price should be no more than 70% of the After Repair Value (ARV) minus your estimated rehab costs. This leaves a buffer for selling costs and profit. Formula: Max Purchase = (ARV × 0.70) − Rehab.
Key Costs to Track
Carrying costs include your monthly mortgage or hard-money loan payments, property taxes, insurance, and utilities during the hold period. These add up fast — a $2,000/month carry for 9 months is $18,000 off your profit.
Selling costs include agent commissions (typically 5–6% of sale price) and seller closing costs (title, escrow, transfer taxes), usually 1–3%.
ROI vs. Annualized ROI
Raw ROI shows your total return on the capital invested. Annualized ROI adjusts for how long your money was tied up — a 20% ROI on a 6-month flip is equivalent to a 40% annualized return, far better than the same ROI on an 18-month project.
What is a Good Flip Profit?
Most experienced flippers target a minimum of $25,000–$30,000 gross profit, with an ROI of 15% or more. Annualized ROI above 30% is considered strong in most markets.