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70% Rule Calculator
Take 70% of the after-repair value, subtract your rehab, and get your max offer — with a full comparison from 60% to 80% so you can see how aggressive each one is.
Deal
Rule
Max offer (70% rule)$165,00070% of ARV, minus rehab
At 65%$150,000
At 70%$165,000
At 75%$180,000
How to use this calculator
Enter the after-repair value and your estimated rehab. Keep the rule at 70% or adjust it to your market. The calculator returns your max offer instantly, shows the cushion the rule builds in, and compares the offer across common rule percentages.
What the metrics mean
- 70% rule — pay at most 70% of ARV minus rehab, leaving roughly a 30% cushion.
- After-repair value (ARV) — what the property will be worth fully renovated.
- Built-in cushion — the portion of ARV the rule holds back for profit and costs.
- Max offer — the highest price the rule says you should pay.
Frequently asked questions
- What is the 70% rule in house flipping?
- The 70% rule says pay no more than 70% of a property’s after-repair value (ARV) minus estimated rehab. The 30% held back is meant to cover your profit, holding costs, closing, and selling costs.
- How do you calculate the 70% rule?
- Max offer = (ARV × 70%) − rehab. On a $300,000 ARV with $45,000 of rehab, the 70% rule offer is $300,000 × 0.70 − $45,000 = $165,000.
- Is the 70% rule always right?
- No. It is a fast screen. Tighter margins or higher-priced homes can justify 75–80%; riskier or unknown rehab scope argues for 60–65%. Always confirm with a full underwrite.
- How is this different from a MAO calculator?
- It is the same core math focused on the 70% rule. Our max allowable offer calculator adds a wholesale assignment fee if you plan to assign the contract.
Running the 70% rule on every lead? dre1mery.com applies it automatically and ranks deals against your buy box.