Property Flipping Profit Margin Calculator
Accurately project your flip profits by accounting for ARV, rehab expenses, holding costs, and selling fees.
Estimated market value after all renovations
Price you paid to acquire the property
Materials and labor for renovations
Time from purchase to sale
Taxes, insurance, utilities, interest
Agent commissions and closing fees
What is ARV (After Repair Value)?
ARV is the estimated market value of a property after all renovations and repairs are completed. It is determined by looking at "comps" (comparable properties) that have sold in the same neighborhood in similar condition within the last 3-6 months. Accurate ARV estimation is the most critical part of flipping; overestimating ARV is the leading cause of flip losses.
What are holding costs in property flipping?
Holding costs are the ongoing expenses paid while you own and renovate the property before it sells. This includes mortgage interest, property taxes, insurance, utilities (electric, water), and security. A common mistake is ignoring these costs, which can easily add $500-$2,000 per month depending on the property size and duration of the flip.
How do I calculate selling costs?
Selling costs typically include real estate agent commissions (usually 5-6% total), closing costs, transfer taxes, and staging fees. For a $300,000 sale, commissions alone could be $18,000. Always budget at least 6-8% of the ARV for selling costs to avoid eating into your net profit.
What is a good profit margin for a fix-and-flip?
Experienced flippers often follow the "70% Rule": they aim to pay no more than 70% of the ARV minus rehab costs. This leaves a 30% margin to cover holding costs, selling costs, and a healthy profit. A project with a net profit margin below 10% is generally considered too risky, as a small budget overrun can turn the project into a loss.