These answers cover the questions we hear most from first-time flippers using this calculator. If you don't see your question here, the Methodology page walks through the full formula, and The 70% Rule Explained goes deeper on how to set a maximum offer.
What counts as holding costs? +
Holding costs are every expense of simply owning the property while it's being renovated and marketed for sale, including property taxes prorated for your ownership period, homeowner's or builder's risk insurance, utilities you keep running for contractors, HOA dues if the property has them, and loan interest if any part of the deal is financed. The longer your project takes, the higher this number climbs, which is why a realistic timeline matters as much as a realistic repair budget.
Should I include financing costs? +
Yes. If you're using a hard money loan, a conventional renovation loan, or even a personal line of credit to fund the purchase or repairs, fold the interest and any points or origination fees into your holding costs field so the profit estimate reflects the true cost of the deal. Leaving financing costs out is one of the most common ways a flip looks more profitable on paper than it actually is.
Is my data stored anywhere? +
No. Every calculation runs locally in your browser using simple arithmetic — nothing you type is sent to a server, logged, or stored. You can close the tab and your numbers disappear; there's no account, no saved history, and no email required to see a result.
What is the 70% rule, and is it a hard rule I have to follow? +
The 70% rule is a quick screening tool: don't pay more than 70% of the After Repair Value minus your estimated repair costs. It's meant to leave enough margin to cover holding costs, selling costs, financing costs, and a reasonable profit — not a guarantee of profitability on its own. It's also a rough industry rule of thumb rather than a fixed law of real estate math; some experienced investors adjust the percentage up or down depending on the market, the deal size, and how confident they are in their ARV and repair numbers. See our full
70% Rule Explained page for more on when and how to adjust it.
How do I estimate ARV accurately? +
Pull closed sales (not active listings, which reflect asking prices, not what buyers actually paid) of comparable homes within roughly a half-mile, sold within the last three to six months, similar in square footage, bed/bath count, lot size, and finish quality to what your renovated home will look like. A real estate agent or appraiser familiar with the immediate area can sanity-check your comps. Overestimating ARV is one of the most common reasons a flip that looked profitable on paper loses money in practice.
How much should I budget for repair cost overruns? +
Beyond your contractor's itemized bid, many experienced flippers add a contingency of roughly 10–15% specifically to absorb the plumbing, electrical, or structural surprises that show up once walls, floors, or ceilings are opened — this is especially common in homes built before 1980. A pre-purchase walkthrough estimate is not the same as a firm bid, and the gap between the two is where a lot of flips lose their margin.
What does it mean if the calculator shows a loss instead of a profit? +
It means that, based on the numbers you entered, your total costs (purchase price, repairs, holding costs, and selling costs) exceed the After Repair Value. That's useful information before you commit money, not after — it's a signal to renegotiate the purchase price, get a tighter repair estimate, look for ways to shorten the timeline, or walk away from the deal entirely. It does not mean the formula is wrong; it means the deal, as currently structured, doesn't have room for profit.
Are real estate agent commissions always 5–6%? +
Commission rates are negotiable and vary by market, brokerage, and the specific agreement between seller and agent — 5–6% combined (buyer's and seller's agent) is a commonly cited range in the U.S., but it is not fixed by law or universal across every deal. Always confirm the actual rate with your agent and include it, along with other closing costs, in the selling costs field for an accurate estimate.
Can I use this calculator for a rental property analysis instead of a flip? +
This tool is built specifically around the buy-renovate-sell flip model — it estimates a one-time profit from resale, not ongoing rental income, cash flow, or long-term return on a buy-and-hold property. If you're evaluating a rental instead, you'll want a different framework that accounts for monthly rent, vacancy, ongoing maintenance, property management, and long-term appreciation.
Is this calculator's estimate financial, tax, or investment advice? +
No. It's an educational tool that shows you the arithmetic behind a flip based on numbers you supply — it doesn't know your specific market, financing terms, tax situation, or risk tolerance. Actual profit depends on factors like final sale price, unexpected repair costs, how long the property takes to sell, and how the deal is financed and taxed. Talk to a licensed real estate, tax, or financial professional before making a purchase decision based on any estimate.