Calculator

70% rule calculator

Enter the after-repair value and your repair budget. You get the most you should pay for the property, at the 70% rule or a stricter or looser one.

After-repair value (ARV)

Repair (rehab) budget

Rule

Maximum allowable offer

Enter the after-repair value and the repair budget to see the most you should pay.

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The formula

How the 70% rule works

Maximum allowable offer = ARV × 70% − repairs. The 30% left over pays for the loan, holding the property, closing on the purchase and the sale, and your profit. If the number is negative, the repairs are too big for this deal at this price.

Get the two inputs right and the rule is a fast, honest filter: the ARV from recent comparable sales, and the repair budget line by line. Read the full guide: the 70% rule in house flipping, or work out the ARV with how to calculate ARV.

Fix and flip loans from Funded Capital

Questions

70% rule questions

What is the 70% rule in house flipping?

Pay no more than 70% of the after-repair value (ARV), minus the repair budget. The other 30% has to cover financing, holding, closing and selling costs, and your profit.

What is the 70% rule formula?

Maximum allowable offer = ARV × 0.70 − repair costs. A house worth $300,000 after a $45,000 rehab gives $300,000 × 0.70 − $45,000 = $165,000.

Is the 70% rule still realistic?

It is a first filter, not a law. In expensive or fast markets investors often stretch to 75%–80% on cheaper rehabs; on heavy rehabs or slow markets, 65% is safer. Run the numbers at more than one rule before you offer.

Does a lender use the 70% rule?

Not directly. A lender sizes a fix and flip loan on cost and after-repair value. We lend up to 90% of cost on fix and flip, with a term sheet in about 2 hours on average.

Deal pencils out? Get a term sheet in about 2 hours on average.

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