Calculate the maximum purchase price for a house flip. The 70% rule says you should pay no more than 70% of the After Repair Value minus rehab costs — leaving room for profit and unexpected expenses.
The 70% rule is a quick formula used by house flippers to determine the maximum price they should pay for an investment property:
Max Offer = ARV × 70% − Rehab Costs
The remaining 30% covers your profit, closing costs, holding costs, and a buffer for unexpected expenses. Some investors use a stricter 65% or a more aggressive 75% depending on their market and risk tolerance.
This calculator goes beyond the basic formula by also factoring in buy-side closing costs, holding costs, and selling costs to give you a more accurate projected profit.
Maximum Offer Price
$160,000
$20,000 over max offer
Where the ARV Goes
What does this mean?
A 12.9% margin is workable but tight for a flip. Make sure your rehab estimate is solid — there's not a lot of room for cost overruns. Consider whether you can negotiate the purchase price lower or reduce rehab scope.
Keep running the numbers
The 70% rule is your quick filter. Now dig deeper into the deal.
Analyze Buy, Rehab, Rent, Refinance, Repeat deals. See equity captured, cash left in the deal, and post-refi cash on cash return.
Estimate renovation costs by room and scope to budget your next flip or BRRRR project.
Calculate your assignment fee and the end buyer's numbers on a wholesale deal.