70% Rule Calculator — Maximum Allowable Offer (MAO)
Turn ARV and repair costs into your Maximum Allowable Offer with the classic 70% rule — slide the percentage to fit your market and see the offer update live. Free, no signup.
Not sure? Use the ARV Calculator first.
Not sure? Use the Rehab Cost Estimator.
70% is the standard. Tighten it (65%) in soft markets or loosen it (75%) in hot ones.
Maximum Allowable Offer
$170,000
- ARV × 70%
- $210,000
- − Repairs
- − $40,000
- Built-in margin
- $90,000
The margin covers your profit plus holding and selling costs. For the real profit, model the full P&L in FlipIQ.
The 70% rule, explained
The 70% rule is the fastest back-of-the-envelope test in house flipping. It states that you should pay no more than 70% of the After Repair Value minus your repair costs. Written out, the formula is:
MAO = (ARV × 70%) − Estimated Repairs
The 30% discount to ARV is not your profit — it is a buffer that has to cover your buying costs, holding costs, selling costs and your profit. That is why the rule is deliberately cautious: it keeps you from overpaying on the assumption that everything goes perfectly. When you enter an ARV of $300,000 and $40,000 of repairs, the calculator does the math instantly — $300,000 × 70% = $210,000, minus $40,000 = a $170,000 maximum offer.
When to move off 70%
Seventy is a convention, not a constant. In a strong seller's market with quick resales you may compete at 75%; in a slow or falling market, dropping to 65% gives you more protection. The slider above lets you test each scenario in seconds. To feed the calculator accurate inputs, estimate the resale value with the ARV Calculator and the renovation with the Rehab Cost Estimator. The 70% rule is a screen, though — not a full underwrite. Once a deal passes, model the real profit, ROI and annualized ROI across purchase, rehab, holding and selling costs in the full FlipIQ analyzer before you make the offer.
Analyze a full deal in FlipIQ
This calculator gives you one number. FlipIQ turns an address into a conservative ARV range, an AI rehab budget and a full flip P&L — profit, ROI and annualized ROI — all editable and live. Get 3 analyses free, no account needed.
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More free tools
ARV Calculator
Free ARV calculator: enter recent comparable sales and get a conservative after-repair value range for your subject property. No signup, works on mobile.
Rehab Cost Estimator
Free rehab cost estimator: get a ballpark renovation budget from square footage and condition, broken into line items with a built-in contingency.
Flip Profit Calculator
Free flip profit calculator: enter purchase, rehab, holding and selling costs to estimate conservative net profit and ROI before you make an offer.
BRRRR Calculator
Free BRRRR calculator: model buy, rehab, rent and refinance numbers to estimate cash left in the deal and conservative cash-on-cash return.
Holding Cost Calculator
Free holding cost calculator: estimate taxes, insurance, loan interest and utilities across your holding period so your flip budget stays conservative.
Cash-on-Cash Calculator
Free cash-on-cash return calculator: enter down payment, closing costs, rehab, rent and expenses to estimate the annual cash-on-cash return on a rental or BRRRR.
Wholesale Calculator
Free wholesale real estate calculator: enter ARV, repair costs, your target assignment fee and the end-buyer rule to get a conservative Maximum Allowable Offer to the seller and your wholesale spread. No signup, works on mobile.
Frequently asked questions
What is the 70% rule in house flipping?＋
The 70% rule says an investor should pay no more than 70% of a property's After Repair Value minus the repair costs. In formula form: MAO = (ARV × 0.70) − repairs. The 30% gap is a cushion that covers your profit plus holding and selling costs.
How do I calculate my Maximum Allowable Offer (MAO)?＋
Multiply the ARV by your rule percentage (70% is standard), then subtract your estimated repair budget. For example, an ARV of $300,000 at 70% is $210,000; subtract $40,000 of repairs and your MAO is $170,000.
Should I always use 70%?＋
No — treat it as a starting point, not a law. In a hot market with strong resale demand you might stretch to 75%; in a soft or uncertain market, tighten to 65% for more safety. This calculator lets you slide the percentage and watch your offer move.
What does the 30% margin cover?＋
It is not all profit. The gap between the discounted ARV and your all-in cost has to absorb your buying costs, holding costs (taxes, insurance, utilities, loan interest), selling costs (agent commission and closing), and only then your profit. That is why the rule is conservative.
Is the 70% rule enough to decide on a deal?＋
It is a fast screen, not a full underwrite. It ignores your specific financing, holding period and market. Use it to filter deals quickly, then model the real profit, ROI and annualized ROI in a full flip P&L before you commit.
Is this the same as a wholesale MAO with an assignment fee?＋
No. This is a flip screen — it gives you the most you should pay as the buyer. It does not add a wholesale assignment fee or model an assignment. FlipIQ is a flip P&L tool, not a wholesaling calculator.