Free tool
70% Rule Calculator
Enter the after-repair value and your estimated rehab. We'll instantly show your maximum offer — the most you should pay to keep a flip safe. No signup, no catch.
How to use the 70% rule
The 70% rule is a quick screening filter, not a final answer. It rejects obviously bad deals in seconds so you spend your real analysis time only on the ones worth it. Get the ARV from recent sold comparables (never the Zestimate or a list price), estimate rehab conservatively with a contingency, and treat the result as a ceiling — not a target.
When to adjust the percentage
In expensive, fast-moving markets, experienced flippers sometimes stretch to 75%. In slow markets or where holding costs are high, they drop to 65% or lower. Lower is always more conservative. When in doubt, stay at 70% and confirm with a full analysis.
Frequently asked questions
How does the 70% rule calculator work?
Enter the after-repair value (ARV) and your estimated rehab cost. The calculator computes Maximum Offer = (ARV × 70%) − Rehab. That's the most you'd pay to leave a reasonable margin for holding, selling, financing, and profit.
What is the 70% rule formula?
Maximum Allowable Offer = (ARV × 0.70) − Estimated Rehab Costs. The 70% factor is a rough allowance for all the costs and profit the rule bakes in on your behalf.
Can I change the 70% to another percentage?
Yes — use the percentage field. Investors in pricey or fast markets sometimes use 75%; in slow or high-cost markets, 65% or lower. Lower is more conservative.
Is the 70% rule accurate?
It's a fast screening filter, not a final answer. Always follow it with a full deal analysis that subtracts every real cost. Use our free Deal Analyzer spreadsheet for that.