What is the 70 percent rule in house flipping?

The 70 percent rule is a rough screen many investors use. It says a flipper often should pay no more than 70 percent of after repair value minus repair costs.

Why do holding costs matter so much in a flip?

Mortgage payments, utilities, insurance, HOA dues, taxes, and carrying costs can steadily erode profit each month. A deal that looks strong on paper can weaken quickly if the timeline slips.

What is annualized ROI for a flip?

Annualized ROI converts the project return into a yearly equivalent so shorter and longer flips can be compared more fairly.

Fix-and-flip deal analysis

House Flipping Profit Calculator — Is This Deal Worth It?

Q: How much profit can I make flipping a house?

That depends on the gap between your total investment and your net sale proceeds after commission and selling costs. This calculator helps surface that gap quickly.

Quick answer: This house flipping calculator estimates your total investment, projected profit, ROI, annualized ROI, and whether the deal passes a basic 70% rule screen.

It is built for fast deal triage before you spend time underwriting a full flip in detail.

Last updated: May 2026 · 4 min read

A flip can look great when you only compare purchase price to sale price. The real question is what survives after repairs, holding costs, commissions, and both sides of closing costs. This page focuses on that investor view so you can spot weak deals early and spend more time on the ones that still work after friction.

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House Flipping Profit Calculator

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Run the flip math before you get emotionally attached to the deal

Enter the purchase, rehab, carrying costs, and expected exit price. The calculator updates live so you can stress-test the deal quickly.

Purchase Price ($)

Repair & Renovation Costs ($)

Holding Costs Per Month ($)

Expected Months to Flip

Expected Sale Price / ARV ($)

Real Estate Agent Commission (%)

Closing Costs on Purchase ($)

Closing Costs on Sale ($)

Estimated profit

Enter your project numbers to estimate the flip profit

ROI, annualized ROI, and 70% rule check will appear here.

Total investment—

Net sale proceeds—

ROI—

Annualized ROI—

70% rule—

Break-even sale price—

Total holding costs—

Total commission—

Maximum purchase price under 70% rule—

ARV used—

Planning estimate only. Real flip profitability also depends on financing structure, taxes, permitting delays, scope changes, and actual resale timing.

What makes a flip profitable?

The two biggest mistakes in fix-and-flip math are underestimating carrying costs and overestimating resale value. Repairs are obvious because they appear in contractor bids. Holding time and selling friction are quieter, which is exactly why they surprise so many deals on the downside.

A decent flip is not just one that shows profit. It is one that still works after commissions, closing costs, timeline drift, and a slightly softer exit price. That is why this calculator shows ROI and the 70% rule alongside the headline profit number.

How the 70% rule works

Start with ARV

ARV stands for after repair value, which is your expected sale price after the property is fully renovated and ready to sell.

Take 70% of ARV

Many flippers use 70% as a quick buffer for risk, selling costs, and required profit. It is not law, but it is a common first-pass filter.

Subtract repairs

After taking 70% of ARV, subtract your repair budget. The result is the rough maximum purchase price many investors want to stay under.

Use it as a screen, not a verdict

Some great deals fail the 70% rule in hot markets, and some bad deals pass it with unrealistic ARVs. It is best used as a starting screen, not the final answer.

Frequently Asked Questions

How much profit can I make flipping a house?

That depends on your total investment, your selling costs, and your actual exit price. This page helps show whether there is still enough room after all of those costs are counted.

What is the 70% rule in house flipping?

It is a rule of thumb that says many flippers should aim to pay no more than 70% of after repair value minus repair costs.

Why do holding costs matter so much?

Each extra month adds mortgage, insurance, utilities, HOA dues, taxes, and opportunity cost. Even a profitable flip can weaken fast if the timeline slips.

What is annualized ROI?

Annualized ROI converts your project return into a yearly equivalent so a short six-month flip and a twelve-month flip can be compared more fairly.