70 Percent Rule Calculator

Use this calculator to estimate the maximum offer under the 70 percent rule. It helps property flippers screen whether after repair value leaves enough room for repairs, costs, and profit.

What this calculator does

The 70 percent rule calculator estimates a maximum offer based on after repair value and estimated repair costs.

It uses:

• after repair value
• estimated repair costs
• rule percentage
• maximum offer

This gives a quick acquisition ceiling for early-stage flip analysis.

How to use the 70 percent rule calculator

Enter the after repair value and estimated repair costs. The calculator applies 70% of ARV and subtracts repairs.

The rule is a screening shortcut. It does not replace a full budget, financing review, local market analysis, or resale risk assessment.

70 Percent Rule Formula

Maximum offer = after repair value x 0.70 - estimated repair costs

Where after repair value is expected resale value after improvements and repair costs are the expected renovation spend.

Example calculation

If:

• After repair value = 500,000
• Rule percentage = 70%
• Estimated repair costs = 80,000
• Maximum offer = 270,000

The rule allows 350,000 before repairs, then subtracts 80,000, giving a maximum offer of 270,000.

What is the 70 percent rule?

The 70 percent rule is a property flipping guideline. It suggests paying no more than 70% of after repair value minus estimated repair costs.

The idea is to leave room for transaction costs, holding costs, financing costs, market risk, and profit.

Interpreting your result

If the maximum offer is negative, the repair estimate is too high relative to ARV under this rule. That does not always mean the deal is impossible, but it fails this quick screen.

Use the result with property flip profit and ROI Calculator analysis before making an offer.

When to use this calculator

Use this calculator when you want to:

• screen flip deals
• set offer ceilings
• test repair budgets
• compare acquisition opportunities

Common mistakes

Common mistakes include:

• overestimating ARV
• underestimating repairs
• ignoring holding costs
• treating the rule as universal

FAQs

Is the 70 percent rule always accurate?

No. It is a shortcut and should be adjusted for market conditions, costs, and investor strategy.

Can maximum offer be negative?

Yes. That means estimated repairs exceed 70% of ARV under the rule.