70 Percent Rule Flipping Calculator

After Repair Value (ARV) ($):


Estimated Repair Costs ($):


Calculate

House flipping has become one of the most popular real estate investment strategies, offering the potential for fast profits and scalable returns. However, successful flipping hinges on making smart buying decisions. That’s where the 70 Percent Rule Flipping Calculator becomes an indispensable tool.

This calculator helps you determine the maximum purchase price you should pay for a fix-and-flip property to ensure you leave room for repairs, holding costs, and profit. Based on the well-known "70% Rule" used by professional real estate investors, this tool can save you from bad deals and maximize your returns.

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Formula

The 70% Rule is a quick, conservative formula used by house flippers:

Maximum Purchase Price = (After Repair Value × 70%) − Estimated Repair Costs

Let’s break that down:

• After Repair Value (ARV) is the projected market value of the home after all renovations are complete.
• 70% of ARV accounts for your purchase price, profit margin, and other costs.
• Subtract Repair Costs to determine what you can realistically offer to buy the property.

This ensures enough cushion for profit, transaction costs, holding costs, and unforeseen repairs.

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How to Use the 70 Percent Rule Flipping Calculator

Using the calculator is simple:

1. Enter the ARV – What do you expect to sell the home for after all renovations?
2. Input the Repair Costs – Estimate based on inspection, quotes, or historical data.
3. Click "Calculate" – The calculator instantly displays the maximum offer price you should make based on the 70% Rule.

This makes deal analysis lightning-fast and minimizes risky investments.

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Example

Let’s say:

• ARV = $300,000
• Repair Costs = $45,000

Using the formula:

• Maximum Purchase Price = ($300,000 × 0.70) − $45,000 = $165,000

This means you should not pay more than $165,000 for this property if you want to follow the 70% Rule and maintain your profit margin.

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Frequently Asked Questions (FAQs)

1. What is the 70% Rule in house flipping?
   It’s a guideline that says you should pay no more than 70% of the ARV minus repairs to ensure a profit.
2. Is the 70% Rule a hard rule?
   No, it’s a general rule of thumb. In hot markets, flippers might use 75–80% instead.
3. Why 70%?
   The 30% margin covers profit, closing costs, holding costs, real estate commissions, and unforeseen expenses.
4. What is ARV?
   ARV stands for After Repair Value – the estimated market value of a home after renovation.
5. How do I calculate ARV?
   Use recent comparable sales ("comps") of similar homes in the same area after upgrades.
6. Can I use this calculator for rental properties?
   No. This is for flipping scenarios, not long-term buy-and-hold investments.
7. What if repair costs are unknown?
   Use a conservative estimate based on the size and condition of the home, or consult a contractor.
8. Can I change the percentage from 70%?
   Yes, but this calculator uses 70% as the industry standard. Adjustments can be made manually.
9. What happens if I overpay?
   Overpaying reduces or eliminates your profit and increases your financial risk.
10. Does this calculator account for holding costs?
    Indirectly—those are factored into the 30% buffer built into the 70% rule.
11. Is 70% too conservative in some markets?
    Yes. In fast-appreciating or low-inventory areas, some investors stretch to 75%–80%.
12. Can I use this calculator on commercial real estate?
    Not recommended. The 70% Rule is designed for single-family residential fix-and-flip deals.
13. Should I include closing costs in repair costs?
    No. Closing costs are part of the remaining 30% margin and not the repair estimate.
14. What if I plan to do repairs myself?
    You can reduce the repair estimate accordingly but still leave room for your time and effort.
15. Does this tool work for wholesaling?
    Yes, wholesalers can use it to determine a max allowable offer for a flip buyer.
16. How do I know if I got a good deal?
    If your offer is under or equal to the 70% Rule maximum price, it’s likely a profitable deal.
17. Is the 70% Rule outdated?
    While some say it’s too conservative, many seasoned investors still use it to reduce risk.
18. Can I use this on mobile?
    Yes, this calculator is mobile-friendly and works on all devices.
19. How often should I update my ARV estimate?
    Before each offer or if comps change significantly.
20. What tools help calculate ARV?
    Use platforms like Zillow, Redfin, Realtor.com, or consult a local real estate agent.

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Conclusion

Real estate investing can be highly profitable—but only if you buy right. The 70 Percent Rule Flipping Calculator is a powerful tool that helps investors stay disciplined, avoid overpaying, and protect their profit margins.