Free calculator
70% rule calculator, checked against the full math
The 70% rule says pay no more than 70% of ARV minus repairs. It is fast, and sometimes wrong. This calculator gives you the 70% number, then runs the full flip math at that price so you can see whether the rule leaves you a real profit.
70% rule max price
$160,500
Full-math max offer
$170,000
Profit if you pay the rule price
$46,401
Margin on ARV at that price
15.5%
Rule on rehab without contingency
$165,000
Rule price = percent of ARV minus rehab with a 10% contingency. The full-math max offer clears a $30,000 profit and a 12% margin with hard money (11%, 2 points), state closing costs, carry and selling costs. Not a quote.
Comps, rehab, refi and a verdict for a real address. Your numbers come with you.
How to use it
Enter ARV and rehab
The after repair value from sold comps and your rehab budget. A 10% contingency is added to the rehab.
Pick the percent
70% is the classic rule. Some investors use 65% in slow markets or 75% to 80% on higher-priced houses.
Compare the two answers
If the full-math max offer is lower than the 70% number, the rule is too generous for this house.
Free here, deeper in the app
This free calculator
- The 70% max price, on rehab with a 10% contingency
- The same rule on rehab without contingency, for comparison
- The full-math max offer for a $30,000 profit and a 12% margin
- Profit, margin and a verdict if you pay the rule price
Run The Deal app
- A max offer that adjusts the rule for price tier and days on market
- Your own minimum profit and margin targets
- Stress tests: ARV down 10%, rehab up 20%, a longer hold
- Comps behind the ARV, with every adjustment shown
The 70% rule against the full math
The rule hides a lot of costs inside that 30%: buy closing, loan points and interest, taxes and insurance while you hold, commission and concessions when you sell, and the profit you want. On some houses that 30% is plenty. On others it is not.
| Measure | Result |
|---|---|
| ARV | $300,000 |
| Rehab with contingency | $49,500 |
| 70% rule price | $160,500 |
| Full-math max offer ($30,000 profit, 12% margin) | $170,000 |
| Profit if you pay $160,500 | About $46,400 |
Here the rule is a little conservative: the full math would let you pay up to $170,000 and still clear both targets. Change the ARV to $140,000 with $35,000 of rehab and the picture flips, because the fixed costs do not shrink with the house.
Read the full guide: the 70% rule, and when to break it.
Questions
What is the 70% rule?
A quick screen for flips: pay no more than 70% of the after repair value minus the cost of repairs. On a $300,000 ARV with $45,000 of repairs, that is $210,000 minus $45,000, or $165,000.
Why does this calculator use rehab with contingency?
Because surprises are part of the rehab. Run The Deal adds a 10% contingency to a typed rehab budget, so the rule here subtracts $49,500, not $45,000, giving $160,500. Both versions are shown.
When is the 70% rule wrong?
On cheap houses, where fixed costs like closing, points and commission eat a bigger share, the rule can leave too little profit. On expensive houses it can be too strict. The full-math number accounts for both.
Learn the terms
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