Fix & Flip Profit Calculator
Analyze any house-flip deal with the 70% rule. See your maximum allowable offer, total project cost, net profit, and ROI before you commit.
How the 70% Rule Works for House Flippers
The 70% rule is a fast screening test for fix-and-flip deals: never pay more than 70% of a property's after repair value (ARV) minus the estimated rehab budget. The 30% buffer is designed to cover holding costs, financing, selling costs, and — most importantly — your profit margin. If the asking price sits above your maximum allowable offer, the deal likely won't pencil out once all the hidden carrying costs are added.
Real profit, though, comes down to the full picture: ARV minus purchase, rehab, holding costs (taxes, insurance, utilities, loan interest while you hold), financing fees, and selling costs (agent commissions and closing, typically 6–8% of ARV). Divide that net profit by your total cash in to get ROI. Conservative flippers target a healthy double-digit ROI and pad their rehab and timeline estimates, because the two things that sink flips most often are blown budgets and slow sales.
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Frequently Asked Questions
What is the 70% rule in house flipping?
The 70% rule says a flipper should pay no more than 70% of a property's after repair value (ARV) minus the estimated repair costs. For example, on a home with a $400,000 ARV and $50,000 in rehab, the maximum allowable offer is ($400,000 × 0.70) − $50,000 = $230,000. The 30% buffer covers holding costs, financing, selling costs, and profit.
How do I calculate flip profit?
Net flip profit equals the after repair value minus every cost: purchase price, rehab budget, holding costs (taxes, insurance, utilities, loan interest), financing fees, and selling costs such as agent commissions and closing. Whatever is left after subtracting all of those from the sale price is your profit.
What ROI is good for a fix and flip?
Most experienced flippers target a return on investment of at least 15–20% per project, with many aiming for $25,000 or more in net profit per deal. ROI is net profit divided by total cash invested. Because flips carry real risk from budget overruns and slow sales, conservative investors pad their rehab and timeline estimates and avoid thin-margin deals.