70% Rule Calculator (MAO)

The fastest way to know what to offer on a flip. Enter the after-repair value and the repairs, and get your maximum allowable offer (MAO).

How it works

• MAO = ARV × 70% − repair costs.
• The 30% left over covers buying, holding and selling costs plus your profit.
• Use 65% for lower-priced homes or slow markets, and up to 75–80% for high-priced homes where costs are a smaller share of the price.

Frequently asked questions

Is the 70% rule still accurate?

It is a starting point, not a final answer. On a $150,000 house 30% may not cover costs and profit; on a $600,000 house it may be too conservative. Use it to screen deals, then run a full flip analysis.

Should repairs include a contingency?

Yes. Add 10–15% to your rehab estimate for surprises before applying the rule.