House Flip CalculatorFix-and-flip profit, ROI and your maximum offer, with hard money, holding costs, selling costs and taxes included
Price out a flip the way experienced investors do: purchase and closing, rehab plus contingency, hard money interest and points, monthly holding costs, agent commission and selling costs, then tax on the profit. You’ll see your net profit and ROI, the most you should offer, and how much each extra month or rehab overrun would cost you.
By Manzoor Ahmad · 13+ years of web development & SEO experienceUpdated October 20, 2026 with ATTOM Q2 2026 flipping data
1Buy —
2Rehab —
3Financing —
4Hold & sell —
5Tax Estimate
—
Deal checks
Where the sale price goes
Your after-repair value split into every cost and your profit.
Profit waterfall
From sale price down to what you keep after tax.
What to offer
Three ways to set your maximum purchase price for this ARV and rehab.
Stress test: ARV vs. rehab overrun
Net profit before tax if the sale price or rehab cost differs from plan. The outlined cell is your plan.
The cost of every extra month
Holding costs and interest keep running until you close the sale.
How to calculate house flip profit
House flip profit is the sale price minus every cost of buying, fixing, carrying, financing and selling the property:
Profit = ARV − purchase − buying costs − rehab − financing − holding − selling costs
ROI is that profit divided by your total project cost, and cash-on-cash return is profit divided by the cash you actually put in. Because a flip lasts months, not years, annualized ROI is the fairest way to compare it with other investments.
How much do house flippers make in 2026?
ATTOM’s Q2 2026 report, published October 1, shows flipping margins still shrinking after two years of decline, but remaining solidly positive.
Resale price minus purchase price, before rehab and all other costs. Down from $66,932 in Q1 2026.
Gross profit relative to the purchase price, down from 27.6% a year earlier.
The typical time from purchase to resale, about five and a half months.
77,991 flips, or 6.2% of US home sales in the second quarter of 2026.
Remember that ATTOM’s gross profit is before rehab, financing, holding and selling costs. Once those are paid, a typical flip nets far less. That’s why this calculator focuses on net profit. The commission alone, about 5.7% nationally in 2026, takes a large bite; compare listing options with the real estate commission calculator.
The 70% rule for flipping houses
The most widely used offer formula: Maximum offer = ARV × 70% − repair costs.
| After-repair value | Repairs | 70% rule max offer | 75% rule (tight markets) |
|---|---|---|---|
| $200,000 | $30,000 | $110,000 | $120,000 |
| $250,000 | $35,000 | $140,000 | $152,500 |
| $315,000 | $44,000 | $176,500 | $192,250 |
| $400,000 | $60,000 | $220,000 | $240,000 |
| $500,000 | $75,000 | $275,000 | $300,000 |
The 30% cushion has to cover closing, financing, holding and selling costs plus your profit. With selling costs around 7%–8% and hard money at 9%–12%, the rule is a starting point, not a guarantee. The “What to offer” panel above also calculates the price that hits your exact target profit.
Costs first-time flippers forget
Title, escrow, inspection and lender fees, typically 1%–3% of the price.
Hidden damage is normal. Budget 10%–20% on top of the contractor bid.
1–3 points up front, plus interest every month, often on the full rehab draw.
Property tax, insurance, utilities and HOA, every month until the buyer closes. Estimate the tax with the property tax calculator.
Commission, transfer tax, title and buyer concessions, often 7%–9% of the sale price. See them line by line in the seller net proceeds calculator.
A flip held a year or less is taxed as ordinary income; regular flippers may also owe 15.3% self-employment tax.
How house flipping profits are taxed
If you sell within a year, the profit is a short-term capital gain taxed at your ordinary income rate, from 10% to 37%. Hold longer than a year and it may qualify for long-term rates of 0%, 15% or 20%, though the extra holding costs often outweigh the tax saving. Investors who flip regularly can be treated as dealers: their profit is business income, subject to income tax plus about 15.3% self-employment tax, and they can’t use a 1031 exchange. Run your exact numbers, including brackets, with the real estate capital gains tax calculator, and ask a tax professional how your activity is classified.
Flipping vs. BRRRR: sell it or rent it?
| Fix and flip | BRRRR (rent and refinance) | |
|---|---|---|
| Payday | One lump sum at sale | Cash back at refinance plus monthly rent |
| Selling costs | 7%–9% of the sale price | None; refinance costs instead |
| Tax | Ordinary income (plus SE tax for dealers) | Refinance cash isn’t taxable; depreciation offsets rent |
| Main risk | Market dips before you sell | Appraisal or rent too low to pull cash out |
If the profit is thin but the property would rent well, compare keeping it with the BRRRR calculator, and check that the rent would qualify for a refinance with the DSCR calculator.
Six mistakes that sink a flip
- Overestimating the ARVUse sold comps from the last three to six months within a half mile, not list prices.
- Underbudgeting the rehabGet written bids and add a 10%–20% contingency for what you can’t see behind walls.
- Ignoring timeEvery month adds interest and holding costs. Permits, contractor delays and a slow sale add up fast.
- Forgetting selling costsCommission, transfer tax and buyer concessions often total 7%–9% of the price.
- Over-improvingFinish to the level of the neighborhood; luxury upgrades rarely return their cost.
- Skipping the exit plan BKnow whether the house would cash flow as a rental if the market softens before you sell.
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House flipping questions
How do you calculate profit on a house flip?
Subtract the purchase price, buying costs, rehab, financing (points and interest), holding costs and selling costs from the sale price. What’s left is your net profit before tax.
How much profit should you make on a flip?
Many investors want at least $25,000–$30,000 or 10%–15% of the sale price in net profit, enough to absorb a surprise. In Q2 2026 the typical gross profit, before rehab and other costs, was $60,526 according to ATTOM.
What is the 70% rule in house flipping?
Pay no more than 70% of the after-repair value minus repair costs. For a $315,000 ARV with $44,000 of repairs, the maximum offer is $176,500.
What is a good ROI on a house flip?
A net ROI of 10%–20% on total project cost is common for a solid flip. Because flips take about five to six months, the annualized return is much higher.
How long does it take to flip a house?
The typical flip took 161 days from purchase to resale in Q2 2026, about five and a half months, including the rehab, listing and closing.
How much does it cost to flip a house?
Beyond the purchase price, budget for buying costs (1%–3%), the rehab plus a 10%–20% contingency, financing, monthly holding costs and selling costs of about 7%–9% of the sale price.
How are house flipping profits taxed?
Profits on homes held a year or less are taxed as ordinary income at 10%–37%. Investors who flip as a business may also owe about 15.3% self-employment tax.
What are typical hard money loan terms for flips?
In 2026, residential fix-and-flip loans commonly charge 9%–12% interest and 1–3 points, lend up to 70%–75% of ARV, and run 6–18 months.
How do you estimate ARV?
Look at recently sold, renovated homes of similar size, age and condition within about half a mile, ideally from the last three to six months, and adjust for differences. An agent or appraiser can provide a comparative market analysis.
Is house flipping still profitable in 2026?
Yes, but margins are thinner: typical gross ROI fell to 21.5% in Q2 2026 from 27.6% a year earlier. Buying right, controlling rehab costs and selling quickly matter more than ever.
What are holding costs in house flipping?
The monthly costs of owning the property while you renovate and sell it: loan interest, property tax, insurance, utilities and HOA dues.
Is this house flip calculator free and private?
Yes. It’s free, needs no sign-up and runs entirely in your browser. Nothing you enter is sent to DexoCalc or stored.
Manzoor Ahmad
13+ years of web development & SEO experience · Founder, DexoCalc
Manzoor builds and maintains every DexoCalc calculator, including the full property and investing libraries. This house flip calculator charges hard money interest as rehab funds are drawn, includes points, holding and selling costs, and estimates short-term and dealer taxes, so the profit it shows is what you would actually keep.
Sources
This calculator is for planning and education, not investment, lending or tax advice. Actual sale prices, rehab costs, loan terms and taxes vary; verify every number with contractors, lenders and a tax professional before you buy.