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.
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Note: This page needs review to confirm formulas and sources.
Note: This page needs review to confirm formulas and sources.
No formulas provided in audit spec.
Variables and units
- P = principal (loan amount) (currency)
- r = periodic interest rate (annual rate ÷ payments per year) (1)
- n = total number of payments (years × payments per year) (count)
- M = periodic payment for principal + interest (currency)
- T = property tax (annual or monthly depending on input) (currency)
Sources (authoritative):
- Home — calcdomain.com · Accessed 2026-01-19
https://calcdomain.com/ - Finance — calcdomain.com · Accessed 2026-01-19
https://calcdomain.com/finance - BiggerPockets — biggerpockets.com · Accessed 2026-01-19
https://www.biggerpockets.com/house-flip-estimation-calculator - Construction Estimator — calcdomain.com · Accessed 2026-01-19
https://calcdomain.com/construction-diy - Loan Amortization — calcdomain.com · Accessed 2026-01-19
https://calcdomain.com/loan-amortization
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
- Initial audit spec draft generated from HTML extraction (review required).
- Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
- Confirm sources are authoritative and relevant to the calculator methodology.
Verification pending · Last code update: 2026-01-19