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70% rule calculator
The 70% rule says an investor should pay no more than 70% of a property's after repair value, minus the cost of repairs. The result is the maximum allowable offer, or MAO.
Maximum allowable offer
$0
70% of ARV minus repairs
With your assignment fee
$0
Add a fee to see this
The formula
- MAO = (ARV x 0.70) - repair costs
- Wholesaler's version: MAO = (ARV x 0.70) - repair costs - assignment fee
- The 0.70 can be tightened to 0.65 in a slow market, or loosened to 0.75 in a hot one.
A worked example
- After repair value (ARV)
- $250,000
- Repair estimate
- $30,000
- Rule percentage
- 70%
MAO = (250,000 x 0.70) - 30,000 = 175,000 - 30,000 = $145,000. Anything above $145,000 eats into the built-in margin.
What this number does not tell you
The 70% rule is a guess dressed up as a formula. The Retail Buyer Profits calculator replaces the flat 30% with your real numbers — commissions, concessions, closing costs, repairs and the profit you actually want — and gives you a maximum offer you can defend to a seller.
Run the full analysis freeLooking for a full wholesaling real estate calculator?
This page answers one question. The free wholesaling real estate calculator runs the entire deal: sold comps, repairs by condition, realtor commissions, seller concessions, closing costs and your own profit goal. It doubles as a retail buyer profit calculator, because it prices the house for a retail buyer using FHA, VA, USDA or conventional financing and shows that exit beside the wholesale exit on the same property — so you can see which one actually pays, and the highest price you can offer either way.
New to the retail exit? Read how wholesaling to retail buyers works — the method, the formulas and real student numbers, in plain text.
Common questions
What is the 70% rule in house flipping?
It is a quick screen: pay no more than 70% of after repair value minus repairs. The 30% you leave on the table is meant to cover holding costs, closing costs, selling costs and your profit.
How do you calculate the 70% rule?
Multiply ARV by 0.70, then subtract your repair estimate. ARV $250,000 with $30,000 of repairs gives a maximum allowable offer of $145,000.
Does the 70% rule still work?
It works as a screen, not as an offer. It ignores your actual commissions, closing costs, holding time and profit goal, which is why deals that pass the 70% rule can still lose money and deals that fail it can still be profitable on a retail exit.
What percentage should wholesalers use?
Wholesalers usually subtract their assignment fee as well, so the same house at 70% minus a $10,000 fee gives a $135,000 maximum offer.
Is there a free wholesaling real estate calculator?
Yes. Every calculator on rbpcalculator.com is free and needs no login. This page handles one part of the math; the full wholesaling real estate calculator at /calculator runs the whole deal — comps, repairs, commissions, concessions, closing costs and your profit goal — and returns your maximum allowable offer with a green, yellow or red signal.
What is a retail buyer profit calculator?
A retail buyer profit calculator underwrites the house to a retail exit: selling the finished property to an owner-occupant using FHA, VA, USDA or conventional financing instead of a cash investor. Because that buyer pays close to full market value, it usually supports paying the seller far more than the 70% rule allows while you still clear your fee. The Retail Buyer Profit (RBP) calculator runs that comparison free at /calculator.