If you’re planning a property flip in Chicago, one of the most important steps before buying is knowing your potential profit.

This House Flip Profit Calculator helps you estimate:

• 💰 Total profit from a flip
• 📊 Return on investment (ROI)
• 🏚 Rehab and renovation impact
• ⏳ Holding and selling costs

Whether you’re a beginner or experienced investor, this tool helps you avoid overpaying and underestimating expenses.

📊 Why Calculate Flip Profit Before Investing?

Many investors lose money not because the deal is bad—but because the numbers were wrong.

Common mistakes include:

• Underestimating rehab costs
• Ignoring holding costs (taxes, insurance, utilities)
• Overestimating resale value (ARV)
• Forgetting selling fees and commissions

This calculator helps you avoid those mistakes before you commit.

🧮 House Flip Profit Formula

💡 Net Profit Formula

Net Profit = ARV − (Purchase Price + Rehab Costs + Holding Costs + Selling Costs)

📈 ROI Formula

ROI = (Net Profit ÷ Total Investment) × 100

🧾 What Costs Should You Include?

🏚 Purchase Price

The price you pay for the property.

🔨 Rehab Costs

Includes:

• Repairs
• Renovations
• Materials
• Labor

⏳ Holding Costs

While you own the property:

• Property taxes
• Insurance
• Utilities
• Loan interest

🏡 Selling Costs

When you sell:

• Realtor commission (5–6%)
• Closing costs
• Staging or marketing

🧮 House Flip Profit Calculator (Example)

Let’s break down a real Chicago-style flip:

• Purchase Price: $220,000
• Rehab Costs: $40,000
• After Repair Value (ARV): $320,000
• Holding Costs: $10,000
• Selling Costs: $25,000

💰 Step 1: Total Investment

$220,000 + $40,000 + $10,000 + $25,000 = $295,000

💰 Step 2: Net Profit

$320,000 − $295,000 = $25,000 profit

📊 Step 3: ROI

($25,000 ÷ $295,000) × 100 = 8.47% ROI

⚠️ Is This a Good Flip in Chicago?

In most cases, investors in Chicago aim for:

• 🔥 10%–20% ROI minimum
• 🔥 Strong deals: 20%+ ROI
• ⚠️ Risk zone: Below 10%

👉 In this example, the deal is borderline and may not be worth the risk unless you can reduce rehab or purchase price.

🧠 The 70% Rule (Important for Investors)

A common rule in house flipping is:

Max Purchase Price = 70% of ARV − Repair Costs

Example:

• ARV: $320,000
• Repairs: $40,000

👉 Max Purchase Price:
(320,000 × 0.70) − 40,000 = $184,000

If you pay more than this, your profit margin becomes very tight.

📍 Chicago House Flipping Market Insight

The Chicago market is:

• 🏘 Highly neighborhood-dependent
• 📉 Some areas have slower appreciation
• 🔨 Rehab-heavy opportunities in older housing stock

This makes accurate calculation even more important before buying.

🧮 Use This Calculator Before Every Deal

Before making an offer, plug in:

✔ Purchase price
✔ Rehab estimate
✔ ARV (After Repair Value)
✔ Holding costs
✔ Selling costs

👉 If ROI is too low, walk away or renegotiate.

❓ Frequently Asked Questions

What is a good ROI for house flipping?

Most investors aim for 10%–20% ROI, depending on risk level.

What is ARV?

ARV (After Repair Value) is the expected market value after renovations.

What is the biggest mistake in house flipping?

Underestimating rehab costs and overestimating resale value.

Can I flip houses with low capital?

Yes, but you must be extremely accurate with numbers and avoid low-margin deals.