70% Rule Calculator
Calculate maximum offer price for fix and flip properties using the 70% rule. Ensure adequate profit margin before making an offer on any rehab project.
Property Details
Based on comparable sales after renovations
Add 20% contingency for unexpected costs
Your fee if wholesaling the deal
Additional Costs (Optional)
Include these for more accurate profit calculations
Insurance, utilities, taxes during rehab
Agent commission + closing costs: $21,000
What is the 70% Rule?
The 70% Rule is a quick formula used by house flippers to calculate the maximum price they should pay for a property. It ensures you have enough margin for profit, holding costs, and unexpected expenses.
The Formula
This leaves approximately 30% of ARV for:
- • Repair/renovation costs
- • Your profit (typically 15-20%)
- • Holding costs, carrying costs, and closing costs (10-15%)
When to Use 70% vs 65%
Use in stable markets with predictable costs and average selling times
Use in competitive markets, when you're new to flipping, or when costs are uncertain