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70% Rule Calculator
Quickly evaluate investment properties using the 70% rule — determine the maximum purchase price to ensure profitability while accounting for repairs and desired profit margins.
Property Details
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The 70% rule is a quick screening tool. Always conduct thorough due diligence before making an investment decision.
Results
Maximum Purchase Price
$0
Based on 70% rule calculation
Breakdown
After Repair Value$0
70% of ARV$0
Less Repairs-$0
Less Extra Profit-$0
Maximum Purchase Price$0
How the 70% Rule Works
1Why 70%?
The 70% rule accounts for:
- Holding costs during renovation
- Financing and closing costs
- Conservative profit margin
- Market fluctuation buffer
2The Formula
Maximum Purchase Price =
(ARV × 70%) − Repairs − Extra Profit