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70% Rule Calculator

Use the 70% rule to quickly evaluate investment properties. This rule helps investors determine the maximum purchase price to ensure profitability while accounting for repairs, holding costs, and desired profit margins.

Property Details

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Important Note

The 70% rule is a quick screening tool. Always conduct thorough due diligence including property inspection, market analysis, and detailed financial projections 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