70% Rule Calculator

About this calculator

This calculator applies the 70% rule used in real estate house-flipping: Maximum Offer = (After-Repair Value × 0.70) − Estimated Repair Costs, a rule of thumb investors use to cap what they'll pay for a distressed property so there's enough margin left after renovation costs, closing costs, holding costs, and profit. The 30% buffer below ARV (after-repair value) is what covers all of those expenses plus the investor's target profit.

House flippers and real estate wholesalers evaluating a distressed property before making an offer, real estate agents advising investor clients, and newer investors learning to screen deals quickly use this as a first-pass filter before running a full renovation budget. Enter the after-repair value and estimated repair costs to get the maximum offer.