Max Offer Price Calculator
Before I get excited about a property, I run this math. Plug in the after-repair value (ARV) and your rehab budget — the calculator applies the 70% Rule so you know the most you should offer before holding costs, selling fees, and profit eat the deal alive.
Estimates only. This is a guideline, not a lender approval — actual financeable amount depends on the specific loan program's terms.
The Formula (Quick Reference)
Maximum Allowable Offer = (ARV × 0.70) − Estimated Renovation Costs. That's it — one line you can run on your phone in the parking lot after a showing.
The 30% you're leaving on the table isn't random. It's there to absorb selling costs (agent commissions, closing costs), holding costs while you own the property (interest, taxes, insurance), and still leave room for profit if the project goes mostly to plan.
Use the sliders above to stress-test your numbers. If the max offer feels impossible in your market, that might be the market telling you something — not the calculator being wrong.
What the 70% Rule Actually Is
Most investors I talk to have heard of the 70% Rule. Fewer can tell you what to do with it when they're standing in a distressed kitchen trying to decide what to offer.
Here's the plain version: you should pay no more than 70% of the after-repair value (ARV), minus whatever it costs to renovate the property. ARV is what the house should sell for once the work is done — based on recent comps, not wishful thinking.
$500,000 ARV × 0.70 = $350,000, minus $50,000 in rehab = $300,000 MAO. If rehab creeps to $60,000, your ceiling drops to $290,000 — same ARV, different offer.
Why I Still Run This on Every Deal
I'm not using the 70% Rule because it's perfect. I use it because it'sfast. In a competitive market you don't have time to build a full model on every lead that hits your inbox.
The rule builds a profit cushion into the offer before you fall in love with the layout. It forces discipline when you're tempted to stretch $15,000 because "the ARV feels conservative." If a deal doesn't clear 70%, I usually keep digging — or I walk.
Treat the 70% Rule as your initial screening tool. If a deal passes, follow up with ARV accuracy, rehab scope, and total carrying costs before you write the offer.
What the 70% Rule Doesn't Cover
This is where people get burned. The rule is a rule of thumb — not a complete pro forma. It won't spell out your holding timeline, your hard money rate, or your exit strategy.
- Holding costs Interest-only payments, property taxes, and insurance while you own the project — often 3–6 months on a flip.
- Financing costs Origination, doc fees, and points that come out of your pocket at close. Run theProfit Calculatorfor those.
- Bad estimates The whole formula falls apart if your ARV is inflated or your rehab quote is light. Be conservative on both — I'd rather miss a deal than chase a bad one.
- Market variation A 70% deal in San Diego isn't the same as a 70% deal in a slower Midwest market. Sometimes you need 60% or 50% to sleep at night.
When to Tighten Below 70%
I'll adjust the percentage down when comps are thin, the property is unique, or I need a bigger margin to cover a longer hold. There's no shame in using 60% or 50% of ARV minus rehab if that's what your market demands.
A deal that only works at exactly 70% with aggressive ARV and a tight rehab budget? That's usually a pass for me. I'd rather you send me that deal anyway — I'll tell you straight if the numbers hold up.
How I Use This With the Rest of the Numbers
Step one: run the 70% Rule here. Step two: if it passes, plug your offer into theFix & Flip Profit Calculatorto see cash required, reserves, and estimated profit with real financing assumptions. Step three: send me the address and I'll tell you how I'd finance it — or why I'd walk.
The 70% Rule gets you in the ballpark. The rest of the work is making sure the ballpark has real profit in it when you're done.
70% Rule & Max Offer FAQ
What is the 70% Rule in real estate?
The 70% Rule says your maximum allowable offer (MAO) should be no more than 70% of a property's after-repair value (ARV), minus your estimated renovation costs. Formula: MAO = (ARV × 0.70) − rehab budget. It's a fast way to screen fix-and-flip deals before you spend time on a full analysis or get emotionally attached to a property.
Can you walk through a 70% Rule example?
Say comps support a $500,000 ARV and you estimate $50,000 in rehab. Multiply ARV by 0.70 to get $350,000, then subtract rehab: $350,000 − $50,000 = $300,000 max offer. If your contractor later quotes $60,000 instead of $50,000, your MAO drops to $290,000 — that's why I tell people to re-run the numbers whenever the rehab scope changes.
Does the 70% Rule include holding and financing costs?
No — and that's the biggest thing people miss. The 30% buffer is meant to cover selling costs, holding costs like interest and insurance, and profit, but it doesn't spell any of that out line by line. That's why I treat this calculator as a first filter, then run the full picture on our Fix & Flip Profit Calculator or send me the deal so we can talk real loan terms.
When should I use 60% or 50% instead of 70%?
In slower markets, thinner margins, or when you're less confident in your ARV comps, I'll tighten the rule — 60% or even 50% of ARV minus rehab. The 70% Rule is a starting point, not a one-size-fits-all number. If a deal only works at exactly 70%, that's usually a sign to dig harder or walk away.
Does this guarantee I'll get approved for this offer amount?
No — this is a planning guideline, not a lender approval. The actual amount you can finance depends on the specific loan program's LTV, LTC, or LTARV terms, along with your experience and the deal itself. Treat this number as a ceiling for negotiation, then confirm real numbers with a lender before you go hard on price.
How is this different from the Profit Calculator?
This tool works backwards: given an ARV and rehab budget, it tells you the most you should offer. The Fix & Flip Profit Calculator works forwards: given a purchase price you already have, it tells you the projected profit on that specific deal — including doc fees, origination, and reserves.
Have a Deal to Run By Me?
Send the address, your max offer, and the rehab scope — I'll tell you whether it pencils and how I'd finance it. Usually same day.