70 Percent Rule Calculator for Real Estate Investors
Quickly calculate your max allowable offer using the 70% rule and real market data.
What is the 70% Rule in Real Estate?
The 70% rule is a foundational math formula used by house flippers and real estate investors to ensure they do not overpay for a distressed property. The rule states that an investor should pay no more than 70% of the After Repair Value (ARV) of a property minus the repairs needed.
Max Allowable Offer = (ARV × 0.70) − Estimated Repair Costs
Why 70%? The remaining 30% acts as a safety barrier. It typically accounts for 15% holding and closing costs (origination fees, taxes, utilities, realtor commissions, staging) and 15% net profit. Real estate investing carries inherent risks like timeline delays and budget overruns—sticking to the 70% rule ensures your minimum profit margin is protected even when the market shifts.
How InvestorVI Does It Better
Most investors still rely on clunky spreadsheets and manual math. Not only is this slow, but guessing the ARV or underestimating the rehab cost natively breaks the 70% rule equation. InvestorVI automatically bridges the gap by injecting live market data directly into your underwriting logic.
- AI Property CompsWe aggregate real-time comparable sales around the subject property natively validating the ARV so you aren't pulling arbitrary optimistic values.
- Risk AnalysisNot all neighborhoods support heavy flips. The AI tracks contextual metrics like rental demand and area demographics to adjust margin requirements dynamically.
Example Scenario
Example Scenario
Example Deal:
- Purchase Price:$180,000
- Rehab Cost:$40,000
- After Repair Value (ARV):$320,000
This price keeps your margin safe after rehab, holding costs, and selling fees.
If you overpay even slightly, your profit can disappear quickly. This tool helps protect your downside before you commit.
Based on real investor scenarios. Results vary by market conditions.
Analyze the deal. Understand the market. Make the right decision — with InvestorVI AI.
💡 Need More Insight?
You’ve got the numbers — now go deeper.
InvestorVI AI works alongside your analysis — helping you go deeper, validate your numbers, and make smarter investment decisions. Ask anything about your deal and get instant guidance.
"This tool gives you the numbers. InvestorVI AI helps you understand what to do with them."
Ask InvestorVI AI →InvestorVI AI can:
- Break down your deal in plain English
- Estimate risks and hidden costs
- Suggest offer strategies
- Answer real-world investing questions
Run a full deal analysis instead of guessing
Don't risk everything on paper math. Calculate your 70% rule metrics live.
No spreadsheets. No guesswork. Just clear investment decisions.
You can calculate this manually, or use our deal analyzer.