Fix and Flip Calculator
Run a flip with the 70% rule, seeing the maximum offer, the projected profit after every cost, and the return on the project.
Want to understand the concept, not just the number? Read The Fix and Flip Guide and more below.
How it's calculated
Flipping lives and dies on the buy price. The 70% rule is how experienced flippers protect their margin. It says do not pay more than 70 percent of the after-repair value, minus the repair budget. That 30 percent gap is not all profit. It has to absorb holding costs, selling costs, and financing before anything is left for you. Buy above the line and the profit gets thin fast.
Take the default. A property that should sell for $300,000 once fixed, with a $40,000 repair budget. The 70% rule caps the offer at 70 percent of $300,000, which is $210,000, minus the $40,000 in repairs, so $170,000. Buy at $165,000, a touch under the max, and the project cost adds up like this. The $165,000 purchase, $40,000 in repairs, $8,000 of holding costs, $21,000 in selling costs at 7 percent of the sale price, and $10,000 of financing come to $244,000. Sell at $300,000 and the profit is $56,000, a 22.95 percent return on the cost you sank in.
The risk in a flip is that every one of those numbers can move against you. Repairs run over, the home takes longer to sell and holding costs climb, or the after-repair value comes in soft. That is why the rule builds in a cushion and why paying under the max offer matters. Stress test it here by lowering the after-repair value and raising the repair budget, and see how quickly a healthy margin can shrink.
Assumptions
- The maximum offer is the after-repair value times the rule percent, minus the repair budget. The 70 percent default leaves room for costs and profit.
- Projected profit is the sale price minus the purchase, repairs, holding, selling, and financing costs. It assumes you sell at the after-repair value you enter.
Last updated: 2026-08-08
These assumptions follow our general methodology.
Frequently asked questions
What is the 70% rule in house flipping?
It says a flipper should pay no more than 70 percent of a property after-repair value, minus the cost of repairs. On a home worth $300,000 fixed up with $40,000 of repairs, the most to pay is $170,000. The 30 percent held back covers holding, selling, and financing costs plus the profit.
What is after-repair value?
It is what the property should sell for once the renovation is done, estimated from recent sales of similar finished homes nearby. It is the single most important number in a flip, since the offer, the loan, and the profit all key off it, so it pays to be conservative.
What costs does a flip have besides the purchase and repairs?
Holding costs like loan interest, taxes, insurance, and utilities while you own it, selling costs like agent commission and closing fees, and financing costs like points on a hard-money loan. These often add 15 to 20 percent on top of purchase and repairs, which is why the rule leaves room for them.
Is the 70% rule always right?
It is a guideline, not a law. In hot markets with thin inventory, some flippers stretch to 75 percent, while beginners are wise to stay at 70 or below for a bigger safety margin. Adjust the rule percent here and watch how it changes the most you can pay.