70% Rule Calculator
The fastest sanity check in flipping: the most you should pay for a property based on its after-repair value.
✏️ These numbers were filled in from a shared link — change anything to make it your own.
How the 70% rule works
Max Offer = ARV × 70% − repair costs. The 30% you hold back covers holding and selling costs, financing, surprises, and your profit. It’s a quick filter — always follow it with a full deal analysis before you commit.
Buying to hold instead of flip? Run the numbers with the Rental Property Calculator.
General information, not investment advice.
Frequently asked questions
What is the 70% rule in house flipping?
It says you should pay no more than 70% of a property’s after-repair value (ARV) minus the repair costs. The remaining 30% is your buffer for holding costs, selling costs, financing, and profit. Formula: Max Offer = ARV × 70% − repairs.
Should I always use 70%?
It’s a starting point. In hot markets experienced flippers sometimes stretch to 75%; in slower or riskier deals they drop to 65% or lower for a bigger safety margin. Adjust the percentage above to match your risk tolerance.
What does the 30% buffer cover?
Holding costs (loan interest, taxes, utilities during the rehab), selling costs (agent commissions, closing), financing fees, unexpected repairs, and your profit. Underestimate these and a "70% rule" deal can still lose money.