70% Rule Calculator
Find the max offer for a house flip.
Traditionally 70%
Results update as you type.
How it works
The 70% rule is a quick rule of thumb house flippers use to decide the most they should pay for a property, and this calculator applies it. You enter the after-repair value (ARV) and the estimated rehab cost, and it returns the maximum offer price. The rule takes 70 percent of the ARV and subtracts the rehab cost, leaving a 30 percent buffer that is meant to cover the flipper's holding costs, selling costs, and profit margin. For example, on a home with a $300,000 ARV needing $40,000 of work, the maximum offer is $170,000. The logic is that paying more than this leaves too little room for the costs and profit that make flipping worthwhile, so the rule quickly screens out deals that are priced too high. It is a starting filter, not a full analysis — you should still run a detailed profit calculation on any deal that passes, and adjust the percentage for your market and financing (some investors use 65 percent in competitive or high-cost areas to protect margins, or a higher percentage where deals are scarce). The rule's accuracy depends entirely on realistic ARV and rehab estimates. Use it to rapidly evaluate potential flips before diving into detailed numbers. Enter the ARV and rehab cost to find your maximum offer.
Max offer = (ARV × 70%) − rehab cost
The 70% rule sets the maximum a flipper should pay at 70 percent of the after-repair value minus the estimated rehab cost. The 30 percent margin covers holding costs, selling costs, and the investor's profit, giving a quick screen for whether a deal is worth pursuing.
Source:Real estate investing (70% rule)
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter after-repair value (arv) and estimated rehab cost.
- 2
Adjust the options
Adjust rule percentage if they apply — sensible defaults are already set.
- 3
Read your result
Maximum offer price updates instantly as you type — no button to press.
Frequently asked questions
What is the 70% rule in house flipping?
The 70% rule says a flipper should pay no more than 70 percent of a property's after-repair value minus the rehab cost. For a $300,000 ARV with $40,000 in repairs, that is $170,000. The 30 percent margin covers holding costs, selling costs, and profit. It is a quick screen for whether a deal is worth pursuing.
Why 70 percent specifically?
The 30 percent gap between the ARV and the maximum offer plus rehab is meant to absorb all the non-purchase costs of a flip — holding costs, selling costs, and financing — while leaving a reasonable profit. Seventy percent is a widely used convention that balances buying low enough to profit against being competitive on price in a given market.
Should I always use exactly 70 percent?
Not necessarily. The percentage is adjustable to your market and financing. In competitive or high-priced markets where deals are hard to win, some investors use 65 percent to protect their margin, while in slower markets with less competition, a higher percentage may still be profitable. Adjust it to reflect your costs, financing, and required profit.
Is the 70% rule enough to evaluate a deal?
No, it is only a fast initial screen. It ignores the specifics of your actual holding costs, financing terms, and selling expenses, which vary by deal. Use it to quickly rule out overpriced properties, then run a full profit and ROI calculation on any deal that passes before making an offer or committing capital.
What makes the 70% rule accurate?
The rule is only as good as its two inputs: the after-repair value and the rehab cost. An overestimated ARV or an underestimated rehab budget will produce a maximum offer that is too high, eroding or eliminating profit. Base the ARV on solid comparable sales and get realistic contractor bids for the rehab to keep the rule reliable.