Fix & Flip Calculator (70% Rule)
Free fix and flip calculator using the 70% rule. Enter the after-repair value and repair costs to see your maximum allowable offer, plus your estimated profit and ROI once selling costs are accounted for.
At $150,000.00, you’re within the $165,000.00 max offer, with an estimated profit of $81,000.00 (41.5% on cash).
The 70% rule for house flipping
The 70% rule is a quick screen flippers use to avoid overpaying. The idea: don’t pay more than 70% of the after-repair value (ARV) minus your repair costs. That 30% cushion is meant to cover your selling costs, holding costs, financing, and profit. Lower the percentage for thinner margins or pricier markets.
What is ARV?
ARV is the after-repair value — what the home will realistically sell for once it’s fully renovated, based on comparable sales nearby. Getting this number right is the single most important part of a flip; an optimistic ARV is how flips lose money.
What costs does the cushion need to cover?
Agent commission and closing costs at sale, property taxes and insurance while you hold it, utilities, loan interest or hard-money points, and a margin of safety for surprises. This calculator folds those into a single selling-and-holding percentage so you can see your estimated profit and return on cash.
Frequently asked questions
What is the 70% rule in house flipping?⌄
It says don't pay more than 70% of a property's after-repair value (ARV) minus repair costs. The 30% cushion covers selling costs, holding costs, and your profit margin.
What is ARV?⌄
After-repair value — what the home will realistically sell for once fully renovated, based on comparable sales. It's the most important and most error-prone number in any flip.
Why subtract repair costs from the offer?⌄
Because you'll spend that money to reach the ARV. The 70% rule budgets for the value, then removes what it costs you to create it, leaving your maximum safe purchase price.
Should I always use 70%?⌄
It's a starting point. Use a lower percentage in expensive or slow markets or when margins are thin, and only go higher if you have strong comps and tight, reliable repair estimates.
Have another question? Get in touch.