70% rule calculator
Free 70% rule calculator: after-repair value × 70% − repairs = the most to pay for a flip. Then check the real profit after selling and holding costs. Example: with typical numbers the most you can pay under the 70% rule comes to $135,000. Free, no sign-up, every step shown.
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$130,000 is $5,000 under the limit. After selling and holding costs the profit is about $53,500.
In LeadCounty every property file opens this calculator with the county's value, tax owed and sales already filled in.
Get the real numbers for every property, already filled in.
In LeadCounty every property page carries its county record: value, yearly tax and any amount owed, every sale with its price, building facts, the owner and mailing address, and nearby sales (as each county publishes them). The deal calculator on each property uses them. Find the sellers with 37 seller lists, then run the deal in one place. The same calculators also run inside the app.
- 7-day free trial (the Explore trial needs no card)
- Refreshed every week from official records
- No contract, cancel any time
How to use the 70% rule calculator
- Estimate the after-repair value (ARV) from recent sales of fixed-up houses nearby, close in size and age.
- Multiply the ARV by 70% (0.70). The other 30% is left for the flipper's loan, holding and selling costs and profit.
- Subtract your repair estimate. The result is the most you should pay for the house.
- Enter the price you plan to pay and the selling and holding costs to see the real profit, not just a pass or fail.
The formula
Most to pay = after-repair value × 70% − repairs. Then profit = ARV − selling costs − price − repairs − holding costs.
Worked example
With after-repair value (ARV) of $250,000, repair estimate of $40,000, rule percentage of 70%, price you plan to pay of $130,000 and selling costs of 7%, the most you can pay under the 70% rule is $135,000. $130,000 is $5,000 under the limit. After selling and holding costs the profit is about $53,500.
Common mistakes
- Using an ARV that assumes a luxury finish when you plan a basic one.
- Treating 70% as a law; in some markets the profit is too thin at 70%, in others the rule is never met.
- Forgetting that the 30% must pay for selling, holding and loan costs and your profit.
Estimates for planning only, not financial advice.
Questions
What is the 70% rule in house flipping?
Pay no more than 70% of the after-repair value minus the repair cost. On a $250,000 ARV with $40,000 of repairs the limit is $250,000 × 0.70 − $40,000 = $135,000.
Does the 70% rule still work?
It works as a fast first filter. In cheap markets 70% can leave too little profit, and in expensive markets it may never be met. Always run the full numbers (selling cost, holding cost, loan interest) as this page does.
Should wholesalers use 70% too?
Wholesalers subtract their own fee as well: ARV × 70% − repairs − assignment fee. Use the wholesale MAO calculator for that.
What percentage should I use?
Flippers often use 65% to 70%; landlords who keep the house can pay 75% to 80% because they skip selling costs. Your lender and your market decide.
Where do I find the ARV?
From comparable sales: houses sold in the last 3 to 6 months nearby, in the same condition you plan to leave the house in. The ARV calculator walks through it.
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Your net on a wholesale deal: assigning the contract vs a double closeNow find the owner.
Tax-delinquent owners and 36 more seller lists from county records, refreshed weekly. Tested on real sales: see the proof (/proof).
- 7 days free
- Explore: no card
- Full access: cancel before day 7, pay nothing
- Max 10 investors per county
