House Flipping Profit, ROI & 70% Rule MAO Calculator

Real Estate Investing: Mastering the 70% Rule in Fix & Flips

The 70% Rule is the universal benchmark used by experienced real estate investors and wholesalers to determine the Maximum Allowable Offer (MAO) on a distressed property.

Why the 70% Rule Protects Investors

• The formula) automatically reserves 30% of the property's gross value to cover transaction costs: ~10% for buying/selling commissions, ~5-8% for holding and financing costs, and a 12-15% net profit margin buffer against unexpected contractor overruns.

How to Use This Calculator

Enter After Repair Value (ARV - Expected Resale Price in $), Target Purchase Price ($), Estimated Rehab & Renovation Costs ($), Holding Period / Project Duration (Months) into the input fields and the calculator will instantly compute Net Flip Profit ($), Return on Investment (ROI % on Total Capital). All calculations happen in real time — no submission or page reload required. You can adjust any input value and see the result update immediately.

Understanding Your Result

The House Flipping Profit, ROI & 70% Rule MAO result gives you a precise, calculated value based on the inputs you provide. Compare your result against published benchmarks from GAAP, SEC, and FASB to assess where you stand. A single calculation is a useful starting point, but tracking this metric over time — as inputs change — gives you a much more complete picture.

Practical Application

The House Flipping Profit, ROI & 70% Rule MAO is most useful when you have specific, real-world data to enter. For example: enter your actual After Repair Value (ARV - Expected Resale Price in $) to calculate your net flip profit ($). The result helps business owners, analysts, CFOs, and entrepreneurs make informed decisions about analyzing business performance, financial ratios, and operational metrics. This calculator is trusted by professionals and individuals alike because it follows the exact formulas validated by GAAP, SEC, and FASB.

Accuracy Notes and Limitations

Benchmark results against your industry averages. Verify compliance-critical calculations with a licensed CPA. The accuracy of any calculator is limited by the quality of the inputs provided. Double-check your units before entering values — unit errors are the most common source of incorrect results. For critical decisions, cross-reference with at least one additional source or professional consultation.

Frequently Used With

This calculator is often used alongside other business tools to build a complete analytical picture. Combining multiple related calculations provides stronger evidence for decisions than relying on any single metric. Browse the Business category to find complementary calculators for your specific use case.