House Flip Profit Calculator (70% Rule)
Calculate maximum allowable purchase offer (MAO), renovation costs, holding costs, and net profit for real estate fix-and-flip deals.
What this calculator does
The House Flip Profit Calculator (70% Rule) estimates your result instantly from the values you enter, using standard real estate formulas. Calculate maximum allowable purchase offer (MAO), renovation costs, holding costs, and net profit for real estate fix-and-flip deals. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.
About House Flip Profit Calculator (70% Rule)
The House Flip Profit Calculator calculates Maximum Allowable Offer (MAO) using the industry-standard 70% Rule, estimating net profit after purchase costs, rehab budget, holding costs (hard money interest, utilities, insurance), and resale closing commissions.
Formula & Mathematical Calculation
Maximum Allowable Offer (MAO) = ( After Repair Value (ARV) × 0.70 ) - Estimated Repair Costs
Net Flip Profit = ARV - Purchase Price - Rehab Budget - Holding Costs - Selling Costs (6-8%)
Calculation Example
ARV: $350,000 | Rehab: $50,000: 70% Rule MAO = ($350k × 0.70) - $50k = $195,000 Maximum Purchase Offer. Net Projected Profit = $45,000.
Key Benefits
- Applies the professional 70% Rule for fix-and-flip acquisition underwriting
- Calculates Maximum Allowable Offer (MAO) to protect investor profit margins
- Itemizes holding costs (hard money interest, taxes, utilities)
- Deducts 5-6% realtor commissions and closing transfer fees
- Essential for real estate wholesalers and flippers
How to Use this Calculator
-
Enter After Repair Value (ARV)
Input expected retail resale price after full renovation. -
Enter Estimated Rehab Budget
Input contractor repair and remodeling costs. -
Input Holding & Financing Costs
Enter loan interest and monthly carrying expenses. -
Calculate Flip Profit
Click Calculate to view MAO and net projected profit.
Assumptions & Limitations
What the calculation assumes
- Every value you enter is treated as an exact, known amount.
- Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
- Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
- Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
- Amounts are unit-agnostic: results are returned in the same currency you enter.
What it does not cover
- House Flip Profit Calculator (70% Rule) produces estimates for education and planning, not a quote, offer or professional advice.
- Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
- Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
- Figures are only as accurate as the inputs you supply — check them before acting on the result.
- For decisions with lasting financial impact, confirm the numbers with a qualified professional.
Frequently Asked Questions
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