How do you calculate real flip profit?

Real flip profit = ARV minus ALL costs: purchase price, purchase closing costs, rehab (including contingency), holding costs, financing cost, and selling costs. Gross spread (ARV minus purchase) is NOT profit — it ignores the costs that actually eat your margin.

What is a good profit margin for a house flip?

A profit margin above 15% of ARV is considered excellent with strong safety buffer. 10–15% is good but workable. 5–10% is concerning — any overrun may erase profit. Below 5% is critical and may not justify the risk.

How do you calculate maximum purchase price for a flip?

Max Purchase Price = ARV minus target profit minus all non-purchase costs (rehab budget, holding costs, financing cost, selling costs, closing costs). This tells you the highest price you can pay and still hit your profit target.

What is the 70% rule in house flipping?

The 70% rule says: Max Price = ARV × 70% minus rehab budget. It is a rough screening tool that ignores holding costs, financing, and selling costs. Use it as a quick check, not a complete profit model.

Why do house flips lose money?

Flips lose money when costs exceed the spread between ARV and purchase price. The most common causes are rehab overruns, longer holding periods (which increase financing and carrying costs), lower-than-expected resale price, and underestimated selling costs.

How much contingency should I include in rehab budget?

10% minimum for light cosmetic rehabs. 15–20% for moderate to heavy rehabs. In 2026, supply chain surprises and permit delays are common. Budget for overruns, not perfection.

What selling costs should I include?

Typical selling costs are 6–10% of resale price (ARV). This includes agent commissions (5–6%), seller concessions (1–2%), transfer taxes, closing costs, and staging/marketing costs. These must be deducted from every deal analysis.

House Flipping Profit Calculator — Real Profit, ROI & Max Offer Price (2026)

House Flipping Profit Calculator — Overview

That "$150K spread" is not your profit. After rehab, holding costs, financing, and selling fees — many flips shrink fast or go negative. The RealCalc House Flipping Profit Calculator estimates real flip profit after ALL major project costs: purchase, rehab plus contingency, holding, financing, and selling. It answers one critical question: "How much profit is left after everything?"

This calculator computes net profit, profit margin, ROI on cash invested, break-even resale price, maximum purchase price at target profit, margin of safety, and the 70% rule cross-check — giving you a complete picture before you make an offer.

One wrong assumption can kill your deal: rehab overruns, longer holding time, or a lower resale price. Even a 5–10% mistake can erase your entire profit. Run the numbers before you make an offer.

How to Use the House Flipping Profit Calculator

Follow these steps to project real flip profit in under 3 minutes.

1

Enter property details

Enter Purchase Price and After Repair Value (ARV). ARV should be based on conservative comparable sales — this is the most critical input.

2

Enter rehab budget and contingency

Enter your estimated rehab cost and contingency percentage. Rehab estimates should be validated with contractor bids. Always include contingency — 10% minimum, 15–20% for heavy rehabs.

3

Add holding and selling costs

Enter monthly holding costs (taxes, insurance, utilities, HOA) and holding period in months. Set selling cost percentage (typically 6–10% of ARV).

4

Set financing details

Enter loan amount, interest rate, points, and fees. Or use the manual financing cost override for a single total. The calculator uses simplified interest-only financing.

5

Review results and diagnostics

See net profit, profit margin, ROI, break-even resale price, max purchase price at target profit, offer gap, and risk flags. Use sensitivity analysis to stress-test your assumptions.

Inputs & Outputs

What each field means and what the calculator outputs.

Inputs

Field	Description
Purchase Price	Contract price to acquire the property
ARV / Resale Price	Expected resale value after repairs
Rehab Cost	Estimated total renovation cost
Rehab Contingency	Budget buffer for overruns (0–50%)
Purchase Closing Costs	Closing costs at purchase
Selling Cost %	Commissions, concessions, closing at sale (% of ARV)
Monthly Holding Costs	Taxes, insurance, utilities, HOA per month
Holding Period	Months from purchase to sale
Loan Amount	Total loan proceeds
Interest Rate	Annual interest rate (interest-only)
Points %	Lender origination points (% of loan)
Financing Fees	Additional lender fees in dollars
Manual Financing Override	Overrides all calculated financing cost
Cash Invested	Total cash out of pocket (auto-estimated if blank)
Target Profit	Desired profit for max purchase price analysis

Outputs

Net Profit — ARV minus total project cost
Profit Margin — Net profit as % of ARV
ROI on Cash Invested — Net profit / cash invested
Total Project Cost — All costs summed
Break-Even Resale Price — Minimum resale for $0 profit
Max Purchase Price at Target Profit — Highest price that still hits your target
Offer Gap — Difference between max purchase and your price
Margin of Safety — Downside cushion (% of ARV)
70% Rule Cross-Check — Quick deal screen (context only)
Cost as % of ARV — Total project cost relative to resale

Formula

Total Project Cost = Purchase Price + Purchase Closing Costs + Total Rehab Budget + Total Holding Costs + Financing Cost + Selling Costs

Net Profit = ARV − Total Project Cost

Profit Margin = Net Profit ÷ ARV × 100

Gross spread (ARV − Purchase Price) is NOT profit. Real profit must subtract rehab, holding, financing, and selling costs.

Why Flips Fail

Most flips don't fail because of bad ARV. They fail because:

Rehab costs go over budget
Timeline extends — each extra month adds taxes, insurance, utilities, and loan interest
Financing gets expensive — hard money and short-term loans charge interest, points, and fees that scale with time
Selling price comes in lower than expected

Profit disappears quickly when margins are thin. A flip is profitable only if the spread survives rehab cost, holding costs, financing costs, selling costs, delays and overruns, and market risk.

What Your Result Means

The calculator uses profit margin (net profit ÷ ARV) to classify your deal:

15%+ margin & meets target — Excellent: Strong flip margin with healthy safety buffer
10–15% margin — Good: Workable flip margin, but stress-test assumptions
5–10% margin — Concerning: Thin profit cushion — any overrun may erase profit
<5% margin or loss — Critical: Weak or negative flip economics — renegotiate or walk

If your margin is >15%, the deal has room for mistakes. If <10%, it's risky. If <5%, it's fragile.

Rehab Risk

Underestimating rehab is the #1 mistake. Even a 10–20% overrun can wipe out profit. Always include contingency. Rehab estimates should be validated with contractor bids.

Four factors determine flip success: purchase price, rehab cost, time (holding + financing), and exit price. If any one is wrong — profit changes dramatically.

Financing Cost

Hard money and short-term loans charge interest, points, and fees. These costs scale with time — the longer the deal, the more profit disappears. The calculator uses simplified interest-only financing.

Selling is not free. Typical selling costs include agent commission, closing costs, and buyer concessions — often 6–10% of resale price. This must be included in every deal analysis.

Maximum Purchase Price

The best investors don't ask "How much can I pay?" — they ask "What is the maximum price that still leaves profit?" This calculator shows your max purchase price at your target profit, so you know your ceiling before making an offer.

The 70% rule (Max price = ARV × 70% − rehab) is a rough screen, not a complete profit model. It ignores holding costs, financing, and selling costs. Use it only as a quick check.

Limitations

This is a projection tool. It does NOT: guarantee resale price, replace contractor bids, replace financing quotes, replace market analysis, model every repair line item, model tax consequences, or model partnership splits.

Use it to screen deals — not to blindly commit. This calculator is educational and does not replace underwriting, appraisal, contractor bids, or lender review.