70% Rule Calculator

The maximum you can offer on a flip (ARV × 70% minus repairs) with the margin the rule protects.

Your numbers

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Maximum purchase price

$170,000

The most you can pay and keep the rule's built-in margin.

Built-in margin
$90,000

Covers profit AND soft costs

Margin share of ARV
30.0%
All-in at max offer
$210,000

Purchase + repairs

Offer sensitivity

RuleMax offerBuilt-in margin
65%$155,000$105,000
70%$170,000$90,000
75%$185,000$75,000

The margin isn't all profit. It also has to absorb financing, holding, and selling costs. Run the full Fix & Flip Calculator before offering.

Estimates for planning only. Not financial, tax, or legal advice. Verify every number with your own due diligence and advisors.

How this calculator works

The 70% rule is a screening shortcut for flippers: never pay more than 70% of the after-repair value minus repair costs. The 30% gap isn't all profit. It has to cover financing, holding, and selling costs too, with profit taking what remains.

Use it to filter deals in seconds, then underwrite anything that passes with the full Fix & Flip Calculator before you offer.

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FAQ

70% Rule questions, answered.

Selling costs (6–8%), financing and holding costs (5–10%), and a target profit (10–15%) together consume roughly 30% of ARV on a typical flip. Paying 70% of ARV minus repairs preserves that stack.

In fast, liquid markets with easy resale, or when you're flipping with cheap capital and a short timeline, some investors stretch to 75%. In slower markets or heavy rehabs, 65% is the safer screen. The sensitivity table shows what each assumption does to your offer.

No. It prices a resale exit. For buy-and-hold, price the deal on income: cash flow, cap rate, and cash-on-cash, using the Rental Property Calculator.

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