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70% Rule Calculator for House Flipping
The 70% rule says a house flipper should pay no more than 70% of a property's after-repair value (ARV) minus the estimated rehab cost. For an ARV of $300,000 with $50,000 in repairs, the maximum offer is $300,000 × 0.70 − $50,000 = $160,000. The 30% buffer covers holding, financing, and selling costs plus profit.
Maximum Offer = (ARV × 0.70) − Estimated Rehab Costs
How it works
The 70% rule is a fast screening tool, not a final answer. It bakes in roughly a 30% cushion below the after-repair value to absorb the costs the headline price hides — financing points and interest, holding costs, selling commissions — and to leave room for profit.
Use it to filter deals quickly: if a seller's asking price is well above the 70% rule number, the deal likely won't pencil. When a property passes, confirm it with a full analysis that itemizes your actual financing, holding, and selling costs rather than relying on the flat 30% buffer.
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This tool covers one number. FlipOS underwrites the full deal across 12 strategies — ARV, the 70% rule, rehab, holding costs, and worst/base/best scenarios — then manages the project end to end. 14-day free trial, no credit card.
Get started freeFrequently asked questions
- What is the 70% rule in house flipping?
- The 70% rule states that a flipper should pay no more than 70% of a property's after-repair value minus the cost of repairs. The remaining 30% is a buffer for holding costs, financing, selling costs, and profit. It's a quick way to screen whether a deal is worth a deeper look.
- How do you calculate the 70% rule?
- Multiply the after-repair value (ARV) by 0.70, then subtract your estimated rehab costs. For example, an ARV of $300,000 × 0.70 = $210,000, minus $50,000 in repairs gives a maximum offer of $160,000.
- Is the 70% rule always accurate?
- No — it's a rule of thumb. In high-priced markets or for light cosmetic flips, experienced investors sometimes pay 75–80% of ARV; in slower markets or heavy rehabs they may want 65% or less. Always verify with a full deal analysis using your real costs.