House Flip & 70% Rule Calculator

About House Flip Analysis

House flipping involves buying residential properties, renovating them, and reselling them at a profit. Successful real estate investing requires analyzing repair costs, holding fees, commissions, and purchase prices beforehand to prevent financial losses.

How to use this calculator

1. Select your preferred analysis tab: **Detailed Profit & ROI** or **70% Rule Analyzer**.
2. Enter the **After Repair Value (ARV)**—the projected resale price of the property.
3. Enter the estimated **Rehab / Repair Cost** needed to finish the renovations.
4. Input the remaining variables (Purchase Price, Holding Costs, or Hold Time duration) depending on the active tab.
5. Click **Calculate Deal** to view estimated net profits, return-on-investment percentages, or maximum purchase price thresholds.

The formulas explained

The calculations on both tabs are modeled as follows:

• Detailed Net Profit: Deducts all explicit expenses entered by the user: $$\text{Net Profit} = \text{ARV} - \text{Purchase Price} - \text{Rehab Cost} - \text{Holding Cost} - (\text{ARV} \times \text{Selling Cost}\%)$$
• 70% Rule Max Offer: Calculates the highest price you should pay for the property to preserve a standard 30% margin for financing, profits, and buffers.
• 70% Rule Estimated Profit: Estimates profit under standard industry assumptions ($1,000 per month in holding/financing costs and 8% in resale commissions/closing costs): $$\text{Estimated Profit} = \text{ARV} \times 0.92 - \text{Purchase Price} - \text{Rehab Cost} - (\text{Duration} \times 1000)$$

Worked Examples

Frequently asked questions