House Flipping Profit Calculator

Don't lose money on a flip. Use the legendary 70% Rule to calculate your exact Max Allowable Offer (MAO) before you buy.

What will the house sell for when fully renovated?
70% Rule: Max Allowable Offer
$2,30,000

❌ Bad Deal! You are paying too much for this flip.

Projected Flip Profit

Closing & Holding Costs (Est 15%)-$60,000
Net Profit$40,000
ROI on Capital11.1%
The 70% Rule: Investors use this rule to ensure a 30% buffer. 15% goes to holding and selling costs (realtor commissions, hard money loan interest, taxes), leaving a 15% profit margin for the flipper.

What is the 70% Rule in House Flipping?

The 70% Rule is the most famous formula in real estate investing. It states that an investor should never pay more than 70% of the After Repair Value (ARV) of a property minus the cost of repairs.

Formula: Max Allowable Offer = (ARV × 0.70) - Repair Costs

Why Only 70%?

New flippers often ask, "Why do I need a 30% margin? That seems huge!"

Because that 30% margin is not all profit. In reality, about half of it (15%) goes directly to the hidden costs of flipping:

  • Selling Costs (8-10%): Realtor commissions (6%), closing costs, staging, and concessions.
  • Holding Costs (5%): Hard money loan interest, property taxes, utilities, and insurance while the house sits empty.

That leaves you with approximately a 15% net profit margin for all your hard work and risk. If you ignore the 70% rule and buy at 85% of ARV, the holding and selling costs will eat your entire profit, leaving you with $0.

How to Find the ARV (After Repair Value)

The ARV is the most critical number in the equation. To find it, you must pull "comps" (comparables). Look for 3 or 4 houses in the exact same neighborhood, with similar square footage and bedroom counts, that have sold in the last 6 months after being fully renovated.

Frequently Asked Questions

What is the House Flipping (70% Rule)?

The House Flipping (70% Rule) is a free online tool designed to help you calculate your max allowable offer (mao) on a flip property using the legendary 70% rule.

How much does the House Flipping (70% Rule) cost?

Our House Flipping (70% Rule) is 100% free to use. We do not require any signups, subscriptions, or credit cards.

Is my data safe when using this tool?

Yes. All calculations are performed locally in your web browser. We do not store or save your financial data or inputs on our servers.