Free Online 70% Rule Calculator
Quick and accurate calculations
Fix-and-Flip Offer Screening and Profit Buffer Check
Built to keep the approved page structure while turning the 70% rule into a more decision-ready flip screen.
Advanced Mode
Adds custom rule %, contingency, buying/selling costs, hold costs, financing costs, and projected profit context.
About This Calculator
This 70% Rule Calculator is designed for real fix-and-flip screening, not just a one-line maximum-offer formula. It combines the classic MAO shortcut with actual-offer comparison, market-rule flexibility, and a fuller cost stack so you can see whether the flip still works after reality is layered on top.
Use it when you need to decide whether an asking price belongs inside your flip buy box, whether the deal only works under an aggressive rule percentage, or whether the headline ARV spread disappears once carry, selling, and financing costs show up.
The best inputs for this page come from recent renovated comps, real contractor bids, realistic hold timelines, and conservative resale assumptions. The 70% rule is powerful because it creates discipline, but only if the assumptions feeding it are honest.
What This Advanced Version Adds
How to Use This Free Online 70% Rule Calculator
Step-by-Step Guide
1. Build a conservative ARV first
Use recent sold comparables for renovated properties, not listing prices or best-case resale hopes. A weak ARV assumption breaks the entire screen.2. Estimate rehab with discipline
Use contractor bids, material estimates, scope details, and realistic contingency instead of soft round numbers that make the deal look cleaner than it is.3. Enter the actual offer you are considering
That allows the tool to show the real pricing gap versus both the standard 70% rule and your custom market rule.4. Adjust the rule percentage for your market if needed
Some flips require a lower percentage for safety, while very competitive or very efficient operators may justify a higher one. The key is being explicit.5. Add the full cost stack in advanced mode
Buying, selling, holding, financing, and contingency costs are where many flips quietly lose their margin. Use advanced mode to expose that pressure.6. Use the popup dashboard as a screening decision
The modal shows whether the offer fits the shortcut and whether the detailed model still leaves enough profit to justify the flip.Your Results Dashboard (Popup Only)
70% Rule Position
Shows whether the actual offer sits inside, near, or above the classic 70% maximum.
Custom Rule Comparison
Lets you compare the deal against your personalized market rule instead of 70% only.
Profitability Snapshot
Displays projected net profit, margin, ROI, and break-even sale price in one view.
Cost Stack Breakdown
Shows how contingency, carry, resale, and financing costs affect the deal after the headline rule check.
Margin Fragility View
Highlights how quickly the deal can weaken when the offer is too close to the rule line.
Notes and Warning Flags
Ends with action-focused notes telling you which assumptions are most likely to need review.
Why Use This Version?
Beyond a basic MAO widget
Most 70% tools stop at ARV, rehab, and a maximum offer. This version shows whether the flip still works after carry and exit costs are included.
Market-rule flexibility
The custom percentage lets you test whether your market or operating model justifies a tighter or looser rule.
Profit-aware screening
Projected net profit and ROI make the tool more decision-ready than a simple offer cap alone.
Thin-margin detection
The warning system helps catch deals that only work if timeline, ARV, or rehab assumptions go perfectly.
70% Rule Advanced Features
70% Rule Decision Playbook
Set your rule before you shop
Decide whether your operation really supports 70%, or whether your market and financing require a lower number.
Pressure-test margin killers
ARV, rehab, time, and resale friction are the four biggest ways a flip that looked fine stops working.
Use desired profit as a deal filter
A deal that technically makes money may still be too thin once your time, capital, and execution risk are considered.
Update the model after every new quote
Contractor revisions, comp changes, lender terms, or longer hold times can quickly change whether the offer still fits your rule.
Understanding 70% Rule Flip Screening
Core Concept and Decision Context
The 70% rule is a fast fix-and-flip screening shortcut that tries to protect margin by limiting how much you pay relative to ARV and rehab. Its job is to create discipline before a project turns into a costly emotional buy.
Its real value is speed and consistency. You can evaluate more opportunities quickly and reserve deeper underwriting for deals that survive the first screen.
Major Factors Affecting Results
Comparison Framework
Threshold and Timing Guidance
- - Around 70% is the classic benchmark for many beginner-friendly flip screens.
- - Lower percentages can make sense in slower markets or heavier rehab projects.
- - Higher percentages may only work when execution is fast, costs are controlled, and ARV confidence is strong.
- - Recalculate the deal after every scope, lender, or comp update.
- - If the detailed profit model is thin, the shortcut alone is not enough to save the deal.
Practical Use and Strategy Fit
Use the rule to create a disciplined offer ceiling before negotiation starts. That is especially useful when multiple projects are competing for the same capital and management attention.
The most important mistake to avoid is treating the shortcut as a substitute for a real flip budget. A flip can pass the rule and still fail the project once scope creep, sale friction, or longer hold time shows up.
Benefits, Risks, and Impact Summary
- - Benefit: faster deal screening and less emotional overbidding.
- - Benefit: clearer understanding of how much room a flip actually has before profit disappears.
- - Risk: optimistic ARV or rehab assumptions can make a weak deal look acceptable.
- - Risk: longer holds and resale friction can quietly destroy thin margins.
- - Impact: combining rule discipline with cost realism improves offer quality and capital protection.
- - Impact: custom rule percentages help align your buy box with your actual operating model.
Quick Reference: 70% Rule Benchmarks
| Planning Category | Typical Range | Unit | Decision Notes |
|---|---|---|---|
| Rule Percentage | 65% to 80% | of ARV | Common field range depending on market heat, cost structure, and investor model. |
| Buying Costs | 1% to 4% | of purchase price | Typical planning range for acquisition-side costs in many markets. |
| Selling Costs | 6% to 10% | of resale price | Often includes commissions, closing costs, and buyer incentives. |
| Contingency Reserve | 10% to 20% | of rehab budget | Useful for protecting against unknown repairs and scope creep. |
| Hold Length | 4 to 9+ | months | Longer holds can materially change flip economics through carrying costs. |
| Profit Cushion | Deal-specific | net profit target | Your minimum acceptable profit should reflect risk, market speed, and capital use. |
Scientific References & Resources
Official sources
- - CFPB Closing Disclosure Explainer - useful context for acquisition and resale closing-cost categories.
- - BLS CPI Inflation Calculator - helpful for pressure-testing cost inflation over longer rehab timelines.
- - FHFA House Price Index - useful context for broader house-price movement and market sensitivity.
- - IRS Publication 551 - reference context for cost basis concepts and capital improvements.
Market and educational sources
- - CalculateHome 70% Rule Calculator - useful reference for core MAO, custom rule, and offer-comparison patterns.
- - FlipperForce House Flipping Curriculum - practical reference context for 70% rule thinking, deal analysis, and flip execution.
- - DealCheck House Flipping Calculator - useful reference for why holding, financing, and selling costs matter beyond MAO.
Research focus for this calculator
Prioritize conservative ARV comps, reliable rehab budgets, hold-time realism, and resale friction when validating results. The 70% rule is only a first-pass pricing discipline; the actual deal quality lives inside the detailed cost assumptions.
This calculator is for educational screening and planning. It does not replace appraiser review, contractor bids, lender terms, tax advice, legal review, or a full fix-and-flip project model.
Frequently Asked Questions
It is a quick fix-and-flip screening rule. A common version says the maximum offer should be about 70% of the after-repair value minus rehab costs.
ARV means After Repair Value. It is the estimated market value of the property once the renovation is complete and the home is ready for resale.
Many experienced investors adjust the rule for their market, financing, and risk tolerance. Hot markets might stretch above 70%, while slower or riskier markets may require a lower percentage.
The simple shortcut assumes there is enough room for those costs, but it does not calculate them explicitly. This advanced version makes them visible so you can compare the shortcut with a fuller flip model.
Yes. Some flippers can offer more because of lower financing costs, faster turns, lower commissions, or stronger local pricing. That does not make the shortcut useless; it means your personalized rule may differ from 70%.
Common misses include contingency, utilities during the rehab, taxes, insurance, lender points, loan interest, resale commissions, seller concessions, and timeline slippage.
There is no universal number, but many flippers want a meaningful cushion because unexpected repairs and timeline delays can erase thin margins quickly.
Desired profit gives you a personal deal standard. A property can show a nominal profit and still fail your actual buy-box once effort, risk, and capital use are considered.
Use recent comparable sales of renovated properties with similar size, condition, location, and buyer appeal. Conservative ARV estimates are usually better than optimistic ones when screening flips.
Move into a full flip analysis. Validate comps, lock down contractor bids, check permit or code issues, verify carrying costs, and pressure-test the resale timeline before making an offer.
Still have questions? Our calculators are designed to be accurate and easy to use. If you need more help, consider consulting with a professional for personalized advice.
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