Fix and Flip Calculator
Estimate your flip profit, ROI, and the maximum price you should pay using the classic 70% rule.
Agent commissions, title, transfer taxes, and concessions usually run 6–9% of the sale price.
Projected Net Profit
$66,000
21.9% return on the $302,000 you put into the project
70% Rule Max Offer: $230,000
Your purchase price is $10,000 above the 70% guideline. Tighten the offer, trim rehab, or confirm the ARV before committing.
Cost Breakdown
| Purchase Price | $240,000 |
| Rehab Budget | $50,000 |
| Holding Costs | $12,000 |
| Selling Costs (8.0% of ARV) | $32,000 |
| Total Project Cost | $334,000 |
| Sale Price (ARV) | $400,000 |
| Net Profit | $66,000 |
How the 70% rule and flip math work
The 70% rule is flipping's back-of-the-napkin guardrail: pay no more than 70% of the after-repair value minus your rehab budget. The leftover 30% is meant to absorb holding costs, selling costs, financing, and your profit. So if a house will be worth $400,000 fixed up and needs $50,000 in work, the rule says keep your all-in purchase at or below $230,000.
The rule is a screening filter, not gospel. In hot, low-inventory markets, disciplined flippers sometimes stretch to 75–80% when rehab is light and the ARV is rock-solid; in slow markets, they tighten to 65%. Always pressure-test your ARV with recent comparable sales and pad the rehab budget — overruns are the number-one reason flips lose money.
Profit here is ARV minus every cost: purchase, rehab, holding, and selling. ROI divides that profit by the cash you actually put into the project. Most flips are financed with short-term hard money loans, so build the interest into your holding costs. For a full cost-and-profit walkthrough see our house flipping costs and profit guide. If you'd rather keep the property and rent it, the BRRRR method guide is the buy-and-hold cousin of flipping.
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Frequently Asked Questions
What is the 70% rule in house flipping?
The 70% rule says your maximum offer should be 70% of the after-repair value (ARV) minus the rehab budget. The remaining 30% covers holding costs, selling costs, financing, and profit. It's a quick screen to keep you from overpaying.
How do I estimate ARV accurately?
Pull recent sales (last 3–6 months) of comparable, already-renovated homes within about a mile and similar in size, beds, baths, and condition. An overstated ARV is the fastest way to turn a flip into a loss, so be conservative and confirm with a local agent or appraiser.
What costs do flippers forget?
Holding costs (loan interest, property taxes, utilities, insurance while you own it), selling costs (agent commissions, title, transfer taxes), and a rehab contingency of 10–20% for surprises behind the walls. Leaving these out makes a deal look far better than it is.
Is fix and flip better than BRRRR?
Flipping gives you a faster, one-time profit but is taxed as ordinary income and stops earning once you sell. BRRRR keeps the property as a long-term rental and lets you recycle your capital. Many investors do both depending on the deal and their cash needs.