70 Percent Rule Calculator
A 70 percent rule calculator estimates a rough flip purchase threshold by multiplying after repair value by 70% and subtracting repairs. It is a screening shortcut, not a full underwriting model, and it can miss market, financing, holding, selling, and repair risk.
Estimates are based on your inputs and assumptions. DealSharp does not provide financial, investment, legal, tax, or lending advice.
Run the number, then pressure-test the assumptions.
A 70 percent rule calculator estimates a rough flip purchase threshold by multiplying after repair value by 70% and subtracting repairs. It is a screening shortcut, not a full underwriting model, and it can miss market, financing, holding, selling, and repair risk.
Use this page to understand the metric directionally, then compare it against financing, reserves, repair risk, cash flow, and your own constraints.
Use this working calculator as a starting point, then run the full deal in DealSharp when you need more inputs, side-by-side scenarios, and risk context.
Rule-based max purchase price = ARV x 70% - repair costs
If ARV is $300,000 and repair costs are $45,000, the 70 percent rule estimate is $165,000.
Assumptions
70 percent rule scenario
Estimated outputs
Scenario snapshot
Scenario estimate based on the inputs shown here. Use the full DealSharp app to compare financing, repairs, vacancy, cash flow, and risk assumptions before deciding.
How to read this number
The useful move is not treating one number as a final answer. Use it to decide which assumptions deserve more review, then compare the result against cash flow, financing, reserves, repair risk, and your own constraints.
Inputs required
- After repair value estimate.
- Repair cost estimate.
- Rule percentage used for the shortcut.
Outputs explained
- Rule-based max purchase price.
- Quick screening threshold before full analysis.
- Reminder to model holding, financing, selling, and contingency separately.
Assumptions to review
- ARV and repairs are entered by the user and must be verified separately.
- The rule percentage is a shortcut, not a market requirement.
- The calculator does not determine offer price or investment outcome.
What this tells you
- The result is a quick screen for a flip scenario.
- It can help decide whether a deeper model is worth building.
- It should be compared with full flip ROI, holding costs, and rehab budget.
What this does not tell you
- The rule ignores many costs and may be too strict or too loose depending on market and strategy.
- It does not verify ARV, repair scope, buyer demand, financing, or timeline.
Common mistakes
- Treating the rule as a final offer decision.
- Using optimistic ARV or incomplete repair estimates.
- Ignoring holding costs, selling costs, financing, and contingency.
FAQ
Is the 70 percent rule reliable?
It is a shortcut for screening. It should be followed by a full model with repairs, financing, holding costs, selling costs, and market risk.
Can I change the percentage?
Yes. Different markets, costs, timelines, and risk tolerance can require different assumptions.
Run the full deal before deciding
This page helps with one metric or workflow. DealSharp is built for full real estate deal analysis: assumptions, financing, cash flow, repair scenarios, DSCR, cap rate, and risk flags based on your inputs.
Open DealSharpDisclaimer
DealSharp provides calculation and scenario-modeling tools for informational purposes only. Outputs are estimates based on your inputs and assumptions. DealSharp does not provide financial, investment, legal, lending, tax, or accounting advice. Verify important decisions with qualified professionals.