70% Rule Calculator
Find your Maximum Allowable Offer on a flip or wholesale deal. Enter the After Repair Value and repair costs — get your max offer instantly.
What the home is worth fully renovated.
Wholesalers: your spread. Flippers: leave at 0.
Maximum Allowable Offer
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Enter an ARV to calculate.
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What is the 70% rule?
The 70% rule is the back-of-the-napkin formula house flippers and wholesalers use to decide the most they can pay for a distressed property and still make money. The idea: never pay more than 70% of the After Repair Value (ARV), minus what it costs to fix up. The leftover 30% is your cushion — it has to cover profit, holding costs, financing, agent commissions, and the inevitable surprises.
The formula
Maximum Allowable Offer = (ARV × 70%) − Repair Costs
Say a home will be worth $300,000 renovated and needs $40,000 of work: ($300,000 × 0.70) − $40,000 = $170,000. That $170k is the ceiling on your offer. Wholesalers subtract their assignment fee on top so the end buyer can still hit their own number.
How to use this calculator
Enter the ARV (what comparable renovated homes nearby have sold for), your estimated repair costs, and — if you wholesale — your assignment fee. Use the percentage presets to stress-test the deal: 75% in a hot market, 65% when you want a wider safety margin.
Estimating ARV and repairs
ARV comes from recent comparable sales — similar size, condition, and location, sold in the last 3–6 months. Repair estimates should include both visible work (kitchens, baths, flooring, paint) and the expensive invisibles (roof, HVAC, electrical, plumbing). When unsure, estimate high; the 70% buffer is not meant to absorb a blown rehab budget.
Frequently asked questions
What is the 70% rule in real estate?
The 70% rule is a guideline house flippers and wholesalers use to decide the most they should pay for a distressed property. It says your offer should be no more than 70% of the After Repair Value (ARV) minus the estimated repair costs. The remaining 30% is a buffer that covers your profit plus holding, financing, and selling costs.
How do you calculate the Maximum Allowable Offer (MAO)?
MAO = (ARV × 70%) − estimated repair costs. For example, on a property with a $300,000 ARV needing $40,000 in repairs: ($300,000 × 0.70) − $40,000 = $170,000 maximum offer. Wholesalers also subtract their assignment fee.
What is ARV (After Repair Value)?
ARV is what the property will be worth once it is fully renovated, based on comparable recently-sold homes in the same area. It is the single most important input — an inaccurate ARV throws off the entire offer.
Should I always use 70%?
No. 70% is the default, but investors adjust it for the market. In hot, competitive markets you may need to go to 75% (a thinner margin) to win deals; in slower or riskier markets, dropping to 65% protects you. Use the slider to test scenarios.
Does the 70% rule work for wholesaling?
Yes. Wholesalers run the same formula and then subtract their assignment fee so the end-buyer (usually a flipper) can still hit their own 70% number. Enter your fee in the optional field to see your wholesale MAO.
This calculator is an educational estimate, not financial advice. Always verify ARV, repair costs, and all deal numbers independently before making an offer.
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Free tool: 70% Rule Calculator