70% Rule Calculator

Work out the most you should pay for a flip or BRRRR deal. Enter the after-repair value and your repair estimate to get a maximum offer in seconds.

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What it will be worth once the work is done. Use recent comparable sales, not listings.
Pad this. Overruns are the norm.
70% is the classic. Investors stretch to 75-80% in competitive markets.
Add it and we'll tell you whether the deal clears.
Estimate only. The 70% rule is a screening shortcut, not a valuation. The margin it holds back has to cover holding costs, closing costs at both ends, agent commissions and your profit - on lower-priced properties those fixed costs eat a larger share, so 70% can still be too generous. Everything depends on the accuracy of your ARV and repair estimate. Not financial advice.

How to manually calculate your maximum offer

Take 70% of the after-repair value and subtract your repair estimate. What's left is the most you should pay - the 30% is your margin for holding costs, financing and profit.

Step 1

Estimate the after-repair value

Use sold comps for finished properties, not asking prices.

Step 2

Multiply by 70%

That leaves a 30% buffer covering closing, holding, selling costs and profit.

Step 3

Subtract your repair estimate

Get contractor quotes rather than guessing, and add a contingency.

Worked example

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A flip with a $240,000 after-repair value needing $30,000 of work.

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Maximum offer = ($240,000 × 0.70) − $30,000 = $168,000 − $30,000 = $138,000

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Screening a flip or BRRRR deal

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70% Rule Calculator

The 30% you hold back is not profit - it absorbs holding costs, closing costs at both ends, agent commissions and your margin. Treat the result as the most you'd offer, not what the property is worth.

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Your ARV is the weak link

Everything hinges on the after-repair value and the repair estimate. Get the ARV from recent comparable sales rather than listings, and pad the repair figure - overruns are the norm, not the exception.

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Why should you use our 70% rule calculator?

  • Gives you a maximum offer in seconds, before you waste time on a bad deal
  • Adjustable percentage - stretch to 75% in a competitive market, or tighten it
  • Shows your built-in margin in dollars, not just a rule of thumb
  • Flags when the asking price is already above your maximum offer
  • Free, fast and no sign-up

FAQs

What is the 70% rule in real estate?

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The 70% rule is a quick screen used by flippers and BRRRR investors. You pay no more than 70% of the after-repair value, minus the cost of repairs.

Maximum offer = (ARV × 0.70) - repair costs. On a property worth $300,000 after $40,000 of work: ($300,000 × 0.70) - $40,000 = $170,000.

Is the 70% rule always right?

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The 30% margin is meant to absorb holding costs, closing costs on both ends, agent commissions and profit. In competitive markets investors often stretch to 75% or even 80%, and on cheaper properties the fixed costs eat a bigger share so 70% can be too generous.

Treat it as a screening tool, not a valuation. It ignores holding period, financing costs and how confident your ARV estimate really is.