Maximum Offer Calculator (70% Rule)

Work back from the after-repair value to the most you should offer, by target profit and by the 70% rule.

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% of ARV
The "70% rule". Some markets use 65–80%.
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To compare against.

Fill in every field to see the result. Nothing is estimated for you.

How the maximum offer calculator works

Instead of asking whether a price is good, work backwards from what the property will be worth once fixed. Take the after-repair value (ARV), subtract the renovation, your costs and the profit you need, and what is left is the most you can pay. Wholesalers and flippers also use a shortcut, the 70% rule: pay no more than 70% of the ARV minus repairs.

The formulas

  • Max offer for your profit = ARV − renovation − buying, holding and selling costs − target profit
  • Max offer by the rule = ARV × 70% − renovation
  • Offer no more than the lower of the two.

Worked example

The ARV is $300,000 and the renovation $45,000. You want $40,000 profit and expect $25,000 of other costs, so your maximum is $190,000. By the 70% rule it is $165,000. Offer no more than $165,000.

What to watch

  • The 70% rule was made for typical flips. In expensive markets the percentage is often higher, in slow markets lower.
  • Get the ARV from recent sales of renovated comparable homes. An optimistic ARV turns a good offer into an overpay.