House Flip Profit Calculator
Estimate your profit and return on investment on a house flip, based on purchase price, rehab costs, and expected resale value.
What holding costs cover
Holding costs are often underestimated by new flippers — they include property taxes, insurance, utilities, loan interest (if the purchase is financed), and HOA fees accrued during the time between purchase and sale. The longer a renovation takes, the more these costs add up, which is part of why timeline overruns can quietly erode profit even when the renovation budget itself stays on track.
Building a realistic timeline buffer into your holding cost estimate — rather than assuming a best-case renovation schedule — tends to produce a more reliable profit projection.
Why accurate ARV estimation matters most
The after-repair value (ARV) is typically the single most sensitive number in this calculation — since it's an estimate of a future sale price rather than a known figure, an overly optimistic ARV can make a marginal deal look profitable on paper when it isn't. Basing ARV on recent comparable sales in the immediate area, ideally reviewed by a local real estate agent or appraiser, produces a more reliable projection than a rough guess.
Selling costs (agent commissions, closing costs, and staging) commonly run 8-10% of the sale price and are easy to underestimate — always build this into your profit calculation rather than treating the full ARV as available profit.
Frequently asked questions
What's typically included in selling costs?
Real estate agent commissions, closing costs, and often staging or minor prep costs — commonly totaling around 8-10% of the sale price, though this varies by market and negotiated agent rates.
Why is ARV the most important number to get right?
Because it's an estimate of a future sale price rather than a known figure, an overly optimistic ARV can make an unprofitable deal look attractive on paper — basing it on solid recent comparable sales data significantly improves the reliability of the whole projection.