House Flip Profit
Calculator
Results
- Profit
- $37,000.00
- Profit margin
- 12.3333%
House-flip cost breakdown
| 200,000.00 | 30,000.00 | 10,000.00 | 5,000.00 | 18,000.00 |
Formula
Π = S − P − R − H − F − Cₛ- sale
- 300000.00
- cost
- 263000.00
= 37000.00
More in Real estate
See all →Frequently asked questions
What costs are easy to forget when estimating flip profit?+
Beyond purchase price and renovation budget, flippers commonly underestimate holding costs (loan interest, taxes, insurance, utilities during the project), selling costs (agent commissions, closing costs), and contingency for renovation overruns. Leaving any of these out significantly overstates expected profit.
What's a reasonable contingency to add to my renovation budget?+
Most experienced flippers add 10% to 20% on top of the estimated renovation budget to cover unexpected issues like hidden structural damage, permit delays, or material cost increases. Older properties or full guts warrant contingencies at the higher end of that range.
How does financing cost affect my flip profit differently than a cash purchase?+
Hard money or bridge loans used for flips typically carry higher interest rates than a standard mortgage, and every month the project runs adds to that interest cost, directly eating into profit. A cash purchase avoids this cost entirely but ties up more of your own capital.
Why does the calculator ask for after-repair value (ARV) instead of my target sale price?+
ARV is meant to be an independent, market-based estimate of what the renovated home will sell for — typically from comparable sales — rather than a hoped-for price. Using an inflated personal target instead of a realistic ARV is one of the most common reasons flip projections don't match actual results.
What profit margin should I be aiming for on a flip?+
Many investors use the 70% rule as a starting screen — offering no more than 70% of ARV minus repair costs — which is designed to leave meaningful room for profit plus a cushion for the unexpected costs above. Actual target margins vary by market and risk tolerance, but thin margins leave little protection if the sale takes longer than planned.