70% Rule (House Flipping) Calculator
Determine the max price you should pay for a fixer-upper, ensuring a profit after repairs and selling costs.
Results
Maximum Purchase Price:
$0.00
How the 70% Rule Works
- The 70% Rule is a quick way for real estate investors to estimate the highest price to offer on a property to flip, after repairs and selling costs.
- Formula: Maximum Purchase Price = ARV × 0.70 − Repair Costs
- ARV: After Repair Value, what the property should sell for, fixed up.
- Subtract estimated repairs, and you have budget room for profit and closing costs.
Frequently Asked Questions
What is the 70% rule in house flipping?
A guideline for investors: pay no more than 70% of a property's after-repair value, minus repairs, to leave room for profit and costs.
How do I calculate it?
Multiply the ARV by 70% (0.70), subtract repairs. That's the most you should pay to flip with a safety margin.
Should I always use the 70% rule?
It's a ballpark. In hot markets, you may pay more; in slow ones, you might need a bigger margin. Always run the numbers in detail for every deal.
Tool by Ugo Candido. For more, see BiggerPockets. Last reviewed: 2025.