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70% Rule Calculator

The 70% Rule is the quick-filter every fix-and-flip investor uses to evaluate deals. The formula is simple: Maximum Purchase Price = (ARV × 70%) − Rehab Costs. The 30% buffer covers acquisition costs, holding costs, financing, and your profit margin. It keeps you from overpaying in a competitive market.

The 70% Rule is a starting point, not a final answer. In hot markets with fast holds and cheap money, experienced flippers sometimes stretch to 75–80% of ARV. In slow markets or on large rehabs, 65% is safer. Adjust the rule's percentage below to match your local market conditions and target profit margin. Always verify your ARV with at least three recent comparable sales.

70% Rule Calculator

After-Repair Value (ARV) ($)

Rehab / Renovation Cost ($)

Rule Percentage (%)

Actual Purchase Price ($)

Max Offer Price—

Rule Pass / Fail—

Potential Profit Margin—

Profit % of ARV—

Rule % guide by market type

65% Rule — slow markets, large rehabs, uncertain ARV, new investors building in more cushion

70% Rule — the standard; works in most markets for experienced flippers with typical 90–180 day holds

75–80% Rule — fast-moving coastal markets, low-rehab deals, experienced operators with strong buyer networks

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