Calculate net profit, ROI, and cash on cash returns for your next house flip
Net Profit $0
ROI —
Cash on Cash —
Acquisition Costs: $0
Rehab Costs: $0
Holding Costs: $0
Out of Pocket Cash: $0
Total Project Cost: $0
Sale Price: $0
Gross Profit: $0
Selling Costs: $0
Net Profit: $0
ROI: —
Cash on Cash Return: —
Enter your numbers and everything updates in real time. Start with what you know — purchase price and rehab estimate — then fill in the rest. The most important output is net profit, which accounts for every cost from acquisition to closing.
The 70% rule is the most common quick-filter in house flipping: Maximum Offer = (ARV × 0.70) − Rehab Costs. Enter your sale price (ARV) in the calculator to see your 70% rule max offer instantly.
For example: if a property's ARV is $350,000 and needs $60,000 in rehab, your 70% rule max offer is $185,000 [($350,000 × 0.70) − $60,000]. This leaves room for buying costs, holding costs, selling costs, and a profit margin. The 70% rule is a starting point — in competitive markets some investors stretch to 75%; in slower or riskier markets, 65% is more conservative.
Every month you own a property costs money — taxes, insurance, utilities, and if you're using a hard money loan, interest on top of that. On a $250,000 loan at 12% annually, that's roughly $2,500/month in interest alone. A 6-month project versus a 9-month project can swing your net profit by $7,500 or more. Keep your timeline tight, and always build in a buffer when estimating project length.
Buying with cash eliminates interest costs and simplifies the deal. Financing with a hard money loan increases total costs but keeps more capital free for other investments. The cash on cash return metric shows the real tradeoff: a leveraged deal often shows a much higher cash on cash return even if net profit is lower, because you deployed less of your own money.
Most experienced flippers target 20% ROI or higher on total project cost. Anything below 15% is a marginal deal — the time, effort, and risk are hard to justify. Below 10% and you're likely better off leaving that capital elsewhere. Markets vary, but these thresholds hold up as a general rule.
Net Profit = Sale Price − (Purchase Price + Buying Costs + Rehab Costs + Holding Costs + Selling Costs). Every cost category matters. Beginners often underestimate buying costs (2–5% of purchase price) and selling costs (6–10% of sale price), which can turn a profitable-looking deal into a break-even or loss.
The formula is: Maximum Offer = (ARV × 0.70) − Rehab Costs. ARV is the After Repair Value — what the property will sell for once renovated. The 30% buffer covers buying costs, holding costs, selling costs, and profit. Enter your sale price (ARV) above to calculate your 70% rule max offer automatically.
Cash on cash return = (Net Profit / Out-of-Pocket Cash) × 100. It measures your return on the actual cash you deployed — not the total project cost. When using a hard money loan, your cash on cash return can be significantly higher than your ROI because you borrowed a large portion of the purchase price. It's the better metric for comparing leveraged deals.
Budget $1,000 to $3,000 per month depending on the property and market. This includes property taxes, insurance, utilities, and loan interest if applicable. Hard money loan interest alone on a $250,000 loan at 12% is $2,500/month. Every extra month you hold the property directly reduces your profit.
Most flips take 3 to 6 months from purchase to close of sale. Cosmetic flips (paint, flooring, fixtures) can close in 60–90 days. Major renovations or structural work can stretch to 9–12 months. Always pad your timeline estimate — contractor delays and permit issues are common. Add at least 30 days of buffer when projecting holding costs.
Cash deals are simpler and cheaper — no interest, no origination fees, faster closes. Hard money loans let you do more deals with less capital and often produce higher cash on cash returns, but they come at a cost: typically 8–15% interest annually plus 2–4 origination points. The right answer depends on your capital position, deal margins, and how many projects you want to run simultaneously.
Buying costs (closing costs when you purchase) typically run 2–5% of the purchase price: title insurance, escrow, inspection, and potentially loan fees. Selling costs typically run 6–10% of the sale price: agent commissions (5–6%), title, transfer taxes, and closing costs. Both are frequently underestimated, especially by newer investors — make sure to include both in every deal analysis.