Calculate your maximum offer
Enter the after-repair value and repair budget. Adjust the rule percentage or add a target profit to compare the profit method.
Enter your numbers to calculate.
Investor calculators
70 Percent Rule Calculator
Calculate a maximum allowable offer from after-repair value, repairs, and fees using the 70 percent rule, and compare it to a profit-based method. This is investor planning, not an offer or investment advice.
Selling or buying soon
A calculator is a starting point. Get a full picture with a direct review of payoff, taxes, title, condition, and timing.
How we work with partners
We are funded principal buyers, advisors, and investors, and we work with wholesalers, investors, and agents on joint ventures and contract acquisitions. If you have a property under contract, use this tool to sanity check the numbers, then bring the deal to us for a fast review.
How the 70 percent rule works
The 70 percent rule is a quick screen for a maximum offer on a property that needs work. It takes 70 percent of the after-repair value, then subtracts the repair budget and any assignment or wholesale fee. The 70 percent leaves room for selling costs, holding costs, and profit, which is why investors use it as a starting ceiling rather than a final number.
The profit method is a check on the rule. It backs out your target profit and about 10 percent for selling and holding costs from the after-repair value, along with repairs and any fee, to see the offer that hits your profit goal. When the two methods disagree, the lower figure is usually the safer ceiling. Adjust the rule percentage for hotter or softer markets, and treat the result as planning, not an offer.
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Maximum offer FAQs
What is the 70 percent rule?
It is a quick way to set a maximum offer on a fix-and-flip or value-add property. The offer is 70 percent of the after-repair value minus the repair budget and any fee. The 70 percent leaves room for selling costs, holding costs, and profit.
What is the maximum allowable offer?
The maximum allowable offer, or MAO, is the highest price you can pay and still hit your target return after repairs, fees, and costs. The 70 percent rule and the profit method are two common ways to estimate it.
Should I always use 70 percent?
No. The percentage is a guideline. Investors use a lower percentage in softer or higher-risk markets and a higher one in hot markets with reliable resale. Adjust the rule percentage and compare with the profit method.
Do you buy properties under contract?
Yes. We are funded principal buyers and investors who work with wholesalers, investors, and agents on joint ventures and contract acquisitions. Bring a property you have under contract and we will review it quickly.
This calculator is general information for Chicago-area owners, buyers, and investors. It is not legal, tax, lending, appraisal, or brokerage advice, and rates or rules can change. Verify figures with the appropriate professionals before money moves or documents are signed. The maximum offer is a planning figure and is not an offer to purchase.