House Flipping Calculator: Profit, ROI and the 70% Rule
Estimate the profit of a house flip: purchase, rehab, holding, hard money loan and selling costs, with ROI on your cash and the 70% rule maximum offer.
Interest only on the loan for the months you hold it, as with most hard money loans. Selling costs include the agent commission and closing costs. Profit is before income tax: a flip held less than a year is taxed as ordinary income.
What it does
Flipping means buying a house below its value, renovating it and selling it within months. The profit is what is left of the sale price after the purchase, rehab, holding costs, loan interest and points and the selling costs. The calculator adds them up and checks the price against the 70% rule that many flippers use.
How to use it
- Type the purchase price, buying costs, rehab budget and the months until you sell.
- Type the monthly holding costs, the ARV, the selling costs and the loan.
- See the profit, the ROI on your cash and the 70% rule maximum price.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How do I calculate the profit on a house flip?
ARV minus everything you spend. Buying at 200,000 with 50,000 of rehab and selling at 330,000 after 6 months leaves 30,800 after buying, holding, financing and selling costs: 42.3% on the 72,800 of cash you put in.
What is the 70% rule in house flipping?
Pay no more than 70% of the ARV minus the rehab. For 330,000 and 50,000 of rehab the maximum is 181,000; buying at 200,000 is 19,000 over.
What costs do flippers forget?
Holding costs, interest and points on the loan, and selling costs of 6% to 10% of the price. In the example they add up to 49,200, more than the profit.
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