House Flipping Calculator — Calculate Your Max Offer (70% Rule)

After Repair Value / ARV ($)Enter a valid ARV.

Estimated Repair Costs ($)Enter a valid repair cost estimate.

Your Planned Purchase Price ($, optional)

Maximum Purchase Offer (70% Rule)

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Estimated Profit at Planned Price

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How to Use This Tool

Estimate the property's After Repair Value (ARV) — what it will sell for once renovated.
Estimate your repair costs.
Click Calculate for your maximum offer under the 70% rule.

The 70% Rule for House Flipping

Maximum Offer = (ARV × 70%) − Repair Costs

This widely used rule of thumb among real estate investors suggests paying no more than 70% of a property's After Repair Value, minus estimated repair costs — leaving a built-in margin for holding costs, selling costs, financing costs, and profit.

Why 70% and Not 100%?

The 30% buffer accounts for expenses beyond the purchase price and repairs: real estate agent commissions on the sale, closing costs, holding costs (utilities, insurance, loan interest during renovation), unexpected repair overruns, and the investor's target profit.

The 70% Rule Is a Starting Guideline, Not a Guarantee

Experienced flippers adjust this percentage based on market conditions, deal size (percentage buffers matter less on very large or small deals), and their specific risk tolerance and cost structure. Always build a detailed budget beyond this quick screening rule before committing to a deal.

Frequently Asked Questions

Why is the rule 70% and not something else?

The 30% discount from ARV is meant to cover selling costs, holding costs, financing costs, and unexpected repair overruns, while still leaving room for the investor's target profit — 70% is a commonly used industry starting point, though some investors adjust it based on their specific situation.

Does this account for holding costs during renovation?

The 70% rule implicitly builds in a buffer for holding costs as part of the 30% discount, but doesn't explicitly calculate them — for precise budgeting, estimate your specific holding costs (loan interest, utilities, insurance) separately.

This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.