House Flipping Calculator
Calculate house flipping profit, ROI, and maximum allowable offer (MAO). Includes rehab costs, holding costs, closing costs, and the 70% rule for real estate investors.
About the House Flipping Calculator
Successful house flipping comes down to the numbers — and knowing your maximum allowable offer (MAO) before you bid. Our house flipping calculator walks through every cost: purchase price, rehab budget, holding costs, financing, and selling expenses, to give you the true net profit and ROI.
We include the 70% rule (and 75% rule) MAO calculations, so you can instantly see whether a deal at any asking price makes sense before you commit. Both investors and wholesalers will find this tool useful for quick deal screening.
The 70% rule explained
The 70% rule says: never pay more than 70% of the After Repair Value (ARV) minus estimated rehab costs. If a house will be worth $300,000 after repairs, and needs $50,000 in work, your MAO is $300,000 × 0.70 − $50,000 = $160,000. The 30% buffer is designed to cover all your transaction costs (closing, holding, selling) and still leave a 10–20% profit margin.
Hidden costs that kill flip profits
First-time flippers frequently underestimate: holding costs (hard money at 10–12% annualized is $1,200/month on a $120,000 loan), agent commissions on sale (5–6%), buyer-side closing costs (1–3%), unexpected scope changes in rehab, and permit delays. Budget a 10–15% contingency on top of your rehab estimate for unknown issues.
Hard money vs. conventional financing for flips
Most flips use hard money loans — short-term, asset-based loans with high rates (8–14%) but fast closing (days, not weeks) and no income verification. Conventional mortgages are cheaper but require owner-occupancy and can't fund distressed properties. Some experienced investors use HELOC or portfolio loans. The financing cost is a major variable — our calculator lets you input your exact rate.