Wholesale Deal Calculator: The 70% Rule Explained (With Formula)

The 70% rule, in plain English

The rule says you should pay no more than 70% of a property's after-repair value (ARV), minus repair costs and your wholesale fee. It's a quick way to guarantee enough margin for the end buyer (typically a flipper or landlord) to make their own profit while you still get paid.

The formula looks like this:

• Maximum Allowable Offer (MAO) = (ARV × 0.70) − Repair Costs − Wholesale Fee

A worked example

Suppose you find a property with an ARV of $300,000 that needs $40,000 in repairs, and you want to make a $25,000 wholesale fee. Your maximum offer is ($300,000 × 0.70) − $40,000 − $25,000 = $145,000. Offer at or below $145,000 and there's room for everyone: the seller gets a fast cash close, the flipper gets a margin, and you earn your fee.

This is the same formula built into DealFlow AI's deal analysis — open any scored lead and you'll see the ARV, suggested repair estimate, and calculated max offer, all editable so you can run your own numbers.

Where the 70% rule breaks down

The 70% rule is a screening tool, not a law. In expensive, fast-appreciating markets, end buyers sometimes accept a thinner margin (and so 75% can work). In slow or rural markets, you may need to be at 65% or lower. Repair costs are the number people most often get wrong — a cosmetic flip and a full gut rehab are very different projects.

Always verify ARV with recent comparable sales (comps) rather than trusting a guess, and be conservative on repairs. It's better to lose a marginal deal than to tie up a property you can't assign.

Why your offer number matters more than you think

A correct MAO does two jobs. First, it protects you from overpaying. Second, it gives you confidence when you talk to the seller — you know exactly what you can pay and why, which makes your offer credible and your negotiation straightforward.

New investors often reverse the math: they start from what the seller is asking and work backward to see if a fee fits. Start from the ARV and the repairs instead, and let the formula tell you the number.

Put the calculator to work

You don't need a spreadsheet. DealFlow AI bundles the calculator into every lead: enter your repair estimate and desired fee, and it computes the maximum offer instantly. It also generates a professional outreach message so you can act on the number immediately.

Want the full toolkit for wholesaling in 2026? Join early access to see the calculator on live Massachusetts leads.

Key takeaways

• The 70% rule: maximum offer = (ARV × 0.70) − repair costs − wholesale fee.
• Always verify ARV with real comps and be conservative on repair estimates — that's where deals go wrong.
• The 70% rule is a screening tool; adjust to 65% or 75% depending on your market.
• Know your number before you negotiate — it makes you credible rather than pushy.
• A good deal calculator turns a raw lead into an actionable offer in seconds.
• Sanity-check your maximum offer against at least three real comps before making it.

Frequently asked questions

Is the 70% rule always accurate? No — it's a starting point, not a law. In fast-appreciating markets end buyers may accept a thinner margin (75% can work), while slow or rural markets may require 65% or lower. Always sanity-check against actual comps.

What if my repair estimate is wrong? A repair estimate that's too low is the most common way wholesalers lose money. Walk the property when you can, get contractor bids for big-ticket items, and pad your number for unknowns. It's better to lose a marginal deal than to overpay.

What's a typical wholesale fee? Fees vary widely, but many wholesalers target a $10,000–$30,000 assignment fee per deal, with $25,000 a common benchmark. The fee has to leave enough margin for the end buyer or the deal won't assign.

How do I estimate ARV without overpaying for comps? Pull three to five recently sold comparables that are genuinely similar to the subject property — same neighborhood, comparable square footage, similar beds and baths, and comparable condition. Adjust for differences, prefer sales from the last three to six months, and be brutally honest about condition: a renovated comp does not justify the same price for a home that needs a full rehab. When in doubt, lean conservative, because the cost of a wrong ARV is far higher than losing a marginal deal.