Does this include lender points or financing fees?

Not automatically. To capture financing friction, add points, origination fees, and other lender charges into holding costs or buy-side closing so your total project cost reflects the true cost of capital.

No. The calculator focuses on project-level profit before income taxes. You should estimate capital gains or ordinary income taxes separately based on your entity structure and tax situation.

Holding costs are entered as a single lump sum. For more precise modeling, break your holding expenses into a monthly burn rate, multiply by your expected project duration (with a margin for delays), and enter the result.

Does ROI include time?

No. ROI here is a simple ratio of net profit to total cost and does not account for how long the flip takes. To compare deals with different timelines, consider annualizing the ROI or using an internal rate of return (IRR) model with dated cash flows.

Can I include partner splits?

Not directly. This tool shows total project net profit. After you see that number, you can apply your specific partnership split, preferred return, or fee structure manually to work out each party’s take.

finance calculator

House Flip Profit Calculator

Estimate flip profit by combining ARV, purchase, rehab, holding, and closing costs.

Results

Gross profit (before closing/holding): $85,000
Sell-side closing costs: $28,000
Total project costs: $306,000
Net profit: $44,000
ROI: 14.38%

Overview

Flipping a property can look great on paper until you start stacking up all the hidden costs—financing, carry, and closing fees that quietly eat into your spread. This house flip profit calculator helps you move past back‑of‑the‑napkin guesses by combining after‑repair value (ARV), purchase price, rehab budget, holding costs, and closing costs into a clear picture of gross profit, total project cost, net profit, and ROI. It’s designed to mimic the way experienced flippers underwrite deals so you can see whether a potential flip actually has enough margin before you write offers or line up funding.

How to use this calculator

Estimate or pull comps for a realistic after‑repair value (ARV) based on similar renovated properties in the same area and price range. Enter that ARV along with your expected purchase price based on the offer you plan to make.
Enter your rehab budget, including materials, labor, permits, contingencies, and any contractor overhead you’re responsible for. Be honest and lean conservative; most inexperienced flippers underestimate this line item.
Add up your holding costs for the full expected project timeline: interest or points on your hard money or private loan, property taxes, insurance, utilities, lawn/snow, HOA dues, and any other recurring carry costs. Enter the total as a lump sum.
Enter your buy‑side closing costs—title, escrow, lender fees, inspections, and other costs you pay when purchasing the property.
Set a sell‑side closing cost percentage of ARV to represent agent commissions and seller‑paid closing fees. In many markets this is 6%–8%, but you can adjust for local norms or discounted listing arrangements.
Review gross profit, total project costs, net profit, and ROI. Then run sensitivity tests: drop ARV by 5%–10%, increase rehab and holding by a safety margin, or change the sell‑side percentage to see how resilient the deal is under less‑than‑perfect execution.

Inputs explained

After-repair value (ARV): Your best estimate of what the property will sell for once all planned repairs, upgrades, and staging are complete. Base ARV on real comps (recent, similar properties in the same area), not just a rule‑of‑thumb markup over purchase price.
Purchase price: The price you expect to pay for the property, including any premium or discount you negotiate. If you’re buying through a wholesaler, treat the assignment fee as part of the purchase price so the calculator captures your full acquisition cost.
Rehab costs: Your total renovation budget, including demolition, materials, contractor labor, permits, dumpsters, contingency, and any design or project management fees you will pay. Small contingency buffers (10–20%) are often added on top of trade bids.
Holding costs: All costs you incur while owning the property before the flip sells: loan interest and points, property taxes, insurance, utilities, maintenance, lawn/snow, HOA dues, and any other recurring expenses. Enter the aggregate for the expected project duration.
Buy-side closing costs: Costs paid at purchase such as title insurance, escrow, recording fees, lender origination or underwriting fees, appraisal, inspections, and attorney fees where applicable. Some investors also include wholesaler assignment fees here if they were not folded into purchase price.
Sell-side closing (% of ARV): Commission and seller‑paid closing fees expressed as a percentage of the final sale price (ARV). In many markets, 6% agent commission plus 1–2% additional seller costs is common, but adjust for your broker agreements and local norms.

How it works

The calculator begins with ARV, the price you reasonably expect to sell the property for after repairs. From that, it subtracts your purchase price and rehab costs to compute a simple Gross profit = ARV − Purchase − Rehab. This shows the spread between what you paid plus renovation budget and what you expect to resell for, before you consider carry and closing friction.

Next, it layers in the true all‑in cost of the project. Buy‑side closing costs—title, escrow, inspections, lender fees—and holding costs like interest, taxes, insurance, and utilities are added. On the sell side, the calculator computes Sell‑side closing costs as a percentage of ARV, representing commissions and seller‑paid closing fees.

Total project costs are then calculated as Purchase + Rehab + Holding + Buy‑side closing + Sell‑side closing. This figure reflects the full amount of cash that goes into the deal (regardless of whether it came from your pocket or a lender) before you receive sales proceeds.

Net profit is computed as ARV − Total costs. This is the dollars you have left after paying for the property, the rehab, the carry, and the friction of buying and selling. If this number is thin, one bad surprise can wipe out your return.

Finally, the calculator derives ROI as Net profit ÷ Total costs. This gives you a simple project‑level return on the total capital committed to the flip. While it is not time‑adjusted like IRR, it provides a useful first‑pass sense of whether a deal clears your minimum profit and return hurdles.

By keeping the math transparent and showing each major cost bucket explicitly, the tool makes it easier to stress‑test your assumptions—reducing ARV a bit, increasing rehab and holding, or changing commission percentages to see how quickly a promising flip turns into a marginal one.

Formula

Gross profit = ARV − Purchase − Rehab
Sell closing = ARV × Closing %
Total costs = Purchase + Rehab + Holding + Buy closing + Sell closing
Net profit = ARV − Total costs
ROI = Net profit ÷ Total costs

When to use it

Screening potential flips quickly to see whether the projected spread still looks attractive after rehab, carrying, and closing costs are fully baked in.
Comparing multiple ARV and rehab scenarios for the same property—basic cosmetic refresh vs full gut—to determine which scope offers the best balance of risk and reward.
Testing how changes in agent commission percentages, staging costs, or hard money terms impact net profit and ROI before you commit to a specific selling or financing strategy.
Sanity‑checking deals brought by wholesalers or agents by plugging in your own conservative ARV, rehab, and holding assumptions instead of relying on their pro formas.
Teaching newer partners or investors how thin margins can quickly disappear when real‑world carrying and closing costs are properly accounted for.

Tips & cautions

Be conservative on both ARV and rehab costs—assume slightly lower sale prices and slightly higher renovation budgets than best‑case scenarios. Deals that still work under conservative assumptions are far safer.
Include all financing friction in your holding or closing lines, including lender points, draw fees, inspection fees, and extension charges. Those costs can materially reduce net profit if they are not modeled up front.
Run scenarios where your sale takes longer than expected. Increasing holding costs to reflect an extra 1–3 months on market is an easy way to see how time risk affects your return.
Adjust the sell‑side commission percentage to reflect your actual exit strategy. If you plan to list yourself or use a discounted brokerage, you can model lower fees—but don’t forget staging, photography, and marketing costs.
Set a minimum acceptable dollar profit and ROI threshold for your flipping business (for example, $25k+ profit and 15%+ ROI) and compare the calculator outputs to those guardrails before pursuing a deal.
This calculator does not model tax impact (capital gains, self‑employment/ordinary income, depreciation recapture) or entity‑level overhead. It focuses on project‑level, pre‑tax profit and ROI.
Time is not explicitly modeled beyond the lump‑sum holding cost input. For time‑weighted returns, you would need to track cash flows by month and compute an annualized ROI or IRR separately.
Financing structure beyond the aggregate holding cost is not detailed here. Complex arrangements with multiple lenders, partner equity, and preferred returns require a separate capital stack model.
Market risk—such as price softening, buyer demand shifts, appraisal issues, or inspection findings—is not explicitly modeled. You should layer your own risk assessment on top of the calculator outputs.
Construction risk, such as contractor delays, change orders, and permitting surprises, is only reflected to the extent you include contingencies in the rehab and holding cost inputs.

Worked examples

ARV $350k, Purchase $220k, Rehab $45k, Holding $8k, Buy close $5k, Sell close 8%

ARV = $350,000; Purchase = $220,000; Rehab = $45,000; Holding = $8,000; Buy closing = $5,000; Sell closing % = 8%.
Gross profit (before holding/closing) = 350,000 − 220,000 − 45,000 = 85,000.
Sell-side closing costs ≈ 350,000 × 0.08 = 28,000.
Total costs = 220,000 + 45,000 + 8,000 + 5,000 + 28,000 = 306,000.
Net profit = 350,000 − 306,000 = 44,000.
ROI ≈ 44,000 ÷ 306,000 ≈ 14.4%.

ARV $280k, Purchase $190k, Rehab $35k, Holding $7k, Buy close $4k, Sell close 7%

ARV = $280,000; Purchase = $190,000; Rehab = $35,000; Holding = $7,000; Buy closing = $4,000; Sell closing % = 7%.
Gross profit = 280,000 − 190,000 − 35,000 = 55,000.
Sell-side closing costs ≈ 280,000 × 0.07 = 19,600.
Total costs = 190,000 + 35,000 + 7,000 + 4,000 + 19,600 = 255,600.
Net profit = 280,000 − 255,600 = 24,400.
ROI ≈ 24,400 ÷ 255,600 ≈ 9.5%.

Stress test: ARV drops and rehab runs over budget

Start from the first example but assume ARV comes in 5% lower and rehab runs $10,000 over budget.
New ARV = 350,000 × 0.95 = 332,500; Rehab = 55,000 instead of 45,000.
Gross profit = 332,500 − 220,000 − 55,000 = 57,500.
Sell-side closing costs ≈ 332,500 × 0.08 ≈ 26,600.
Total costs = 220,000 + 55,000 + 8,000 + 5,000 + 26,600 = 314,600.
Net profit ≈ 332,500 − 314,600 ≈ 17,900; ROI ≈ 17,900 ÷ 314,600 ≈ 5.7%.
Interpretation: what looked like a strong flip under optimistic assumptions turns into a marginal one once you stress-test ARV and rehab—underscoring why conservative inputs matter.

Deep dive

This house flip profit calculator walks through the full math of a flip by comparing after‑repair value to purchase price, rehab, holding, and closing costs so you can see gross profit, all‑in project cost, net profit, and ROI on a single screen.

Because it breaks out buy‑side and sell‑side closing costs and encourages you to include carrying costs and lender fees, it helps you avoid the common mistake of overestimating profit by ignoring transaction friction.

Use it as a first‑pass filter on potential flips, a way to stress‑test conservative ARV and rehab assumptions, and a simple teaching tool when explaining flip economics to partners, lenders, and new investors.

FAQs

Does this include lender points or financing fees?: Not automatically. To capture financing friction, add points, origination fees, and other lender charges into holding costs or buy-side closing so your total project cost reflects the true cost of capital.
Are taxes included?: No. The calculator focuses on project-level profit before income taxes. You should estimate capital gains or ordinary income taxes separately based on your entity structure and tax situation.
What about timeline?: Holding costs are entered as a single lump sum. For more precise modeling, break your holding expenses into a monthly burn rate, multiply by your expected project duration (with a margin for delays), and enter the result.
Does ROI include time?: No. ROI here is a simple ratio of net profit to total cost and does not account for how long the flip takes. To compare deals with different timelines, consider annualizing the ROI or using an internal rate of return (IRR) model with dated cash flows.
Can I include partner splits?: Not directly. This tool shows total project net profit. After you see that number, you can apply your specific partnership split, preferred return, or fee structure manually to work out each party’s take.

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This house flip profit calculator provides simplified estimates only. Real projects involve additional variables such as tax treatment, contractor performance, permitting risk, and market volatility that are not fully captured here. Always validate ARV with comps, cross-check rehab and holding costs with contractors and lenders, and consult qualified real estate, finance, and tax professionals before committing capital to a flip.