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70% Rule Calculator
Find the maximum offer for a flip from ARV and repairs.
Maximum offer
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70% rule.
| 70% of ARV | — |
|---|---|
| ARV | — |
| Repairs | — |
| — |
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How the 70% Rule Calculator Works
House flippers use the 70% rule to set a maximum purchase price: pay no more than 70% of the after-repair value (ARV) minus the repair costs. On a home worth $200,000 fixed up and needing $30,000 of work, that’s $200,000 × 0.70 − $30,000 = $110,000 maximum offer.
The 30% buffer is meant to cover holding costs, selling costs and profit. It’s a rule of thumb — competitive or low-margin markets may call for a different percentage.
max offer = ARV × 0.70 − repair costs
Frequently Asked Questions
What is the 70% rule in house flipping?
Pay at most 70% of the after-repair value minus repair costs, leaving room for holding costs, selling costs and profit.
How do you calculate a max offer?
Multiply the ARV by 0.70 and subtract estimated repairs. On a $200k ARV with $30k repairs, that’s $110k.
Is the 70% rule always right?
It’s a guideline. Hot markets or experienced investors may use 75% or more; thin margins may need less.
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