70% Rule Calculator
The 70% rule is the gold standard for calculating your maximum offer on a fix and flip property. Enter the After Repair Value and estimated repairs to see your maximum allowable offer.
Deal Parameters
Standard is 70%. Use 65% for risky markets, 75% in hot markets.
Calculation Breakdown
This deal meets the criteria!
At this price, you have a $120,000 buffer for closing costs, holding costs, and profit.
Get the Complete Picture
The 70% rule is just the starting point. Use our full calculator to model financing, holding costs, and see your actual ROI.
Full Profit CalculatorFrequently Asked Questions
What is the 70% rule in real estate investing?▼
The 70% rule is a quick formula to determine your maximum purchase price. It states: Max Offer = (ARV × 0.70) - Repair Costs. The 30% buffer covers closing costs, holding costs, and profit.
Is the 70% rule always accurate?▼
The 70% rule is a starting point, not a hard rule. In competitive markets, investors may go to 75-80% and accept lower margins. In slow markets, you might need 65% to account for longer holds.
What costs does the 30% buffer cover?▼
The 30% margin typically covers: 3-5% buying closing costs, 3-5% selling closing costs, 5-10% holding costs (depending on hold time), and 10-15% profit margin.