Temelios

70% Rule Calculator

Find the maximum price to pay for a fix-and-flip.

Calculates the maximum allowable offer using the fix-and-flip investor standard: 70% of ARV minus rehab costs.

The 30% buffer protects against holding costs, selling costs, and thin margins. Paying more compresses your safety margin.

1
Enter ARV: After-Repair Value—get this from recent comparable sales, not seller estimates.
2
Enter estimated rehab costs: Get actual contractor bids; add a 10–20% contingency.
3
Read maximum offer: This is the most you should pay. Paying less builds in more profit.

After-Repair Value / ARV ($)

Estimated Rehab Costs ($)

70% of ARV$140,000

Maximum Allowable Offer (MAO)$110,000

•ARV must come from closed comparable sales, not active listings, Zestimates, or seller opinions. Pull comps within ½ mile and 90 days, similar size and condition.
•Get at least two contractor bids for rehab costs and add a 10–20% contingency. First-time flippers routinely underestimate by 20–30%.
•The 30% buffer must cover: holding costs (~1–2% per month), agent commissions (~3% buy-side + 3% sell-side), closing costs, and your target profit. If margins are already thin, they won't improve during execution.
•Experienced flippers in competitive markets sometimes pay up to 75–80% of ARV minus rehab — but this compresses the safety margin and is only appropriate with high ARV confidence and low rehab uncertainty.
•Run the 70% rule first as a gate; if a deal fails significantly, move on. If it passes, use the Fix & Flip Profit calculator for full underwriting.

Want the full picture?

These calculators use your assumptions. Temelios pulls real comps and census data so your vacancy, rent, and expense inputs are grounded in reality.