Real estate investing · Flip profit
House flipping calculator.
Enter the after-repair value, purchase price, rehab budget, schedule and loan terms. See profit, cash invested, ROI, the break-even sale price and the 70% rule offer.
The 70% rule is a screening rule of thumb, not law: maximum offer = after-repair value × 70% − rehab cost. This calculator also shows the full profit after buying, holding, financing and selling costs, because a deal that passes the rule can still lose money.
Your flip
Your estimate
How the flip numbers are built
All-in cost = purchase price + buying closing costs + rehab + holding costs (monthly cost × months) + loan interest + loan points. Loan interest = loan × rate ÷ 12 × months, interest-only. Profit = sale price − all-in cost − selling costs. Cash invested = all-in cost − the loan. Return = profit ÷ cash invested; the annualised figure compounds that return over 12 months. Break-even sale price = all-in cost ÷ (1 − selling-cost %).
The 70% rule
The rule says an investor should pay no more than about 70% of the after-repair value minus the rehab cost. It is a rough filter used to leave room for costs and profit, and 70% is a convention, not a legal or market standard. Change the percentage to match your market and risk. With a $300,000 after-repair value and $40,000 of rehab, the 70% maximum offer is $300,000 × 0.70 − $40,000 = $170,000.
What this page does not do
- No sale price, rehab cost, interest rate or fee is assumed: every one is your estimate. Contractor quotes and comparable sales decide the first two.
- It excludes income tax, which depends on how the property is held and how often you sell. See the capital gains page and ask a tax professional.
- Rehab is assumed paid from cash. Loan points and interest are charged only on the amount borrowed against the purchase price.
Frequently asked questions
Is the 70% rule a requirement?
No. It is a rule of thumb flippers use to screen offers. The percentage varies with the market, the rehab risk and how much profit you need.
What does after-repair value mean?
The price you expect the finished house to sell for, usually estimated from recent comparable sales. This page uses the number you enter.
Why can a deal pass the 70% rule and still lose money?
The rule ignores your actual holding time, interest, points and selling costs. Compare it with the profit line, which includes them.
Does this include taxes?
No. Income tax, self-employment tax and any transfer taxes depend on your situation and are left out.
Estimate only
This page is educational and is not investment, tax or legal advice. Results are only as good as the estimates you enter; renovation costs and sale prices often differ from plan. Calculations run in your browser; nothing is sent anywhere.