Seventy Percent Rule Calculator

Background.

This seventy percent rule page is built to apply an entered acquisition percentage to ARV and subtract repairs and other project costs. The seventy-percent rule is an investor screening heuristic, not an appraisal method or lender standard. The implemented convention is “maximum offer = max(after-repair value × entered acquisition-rule percentage − repairs − other project costs, 0).”

The editable entries are supported after-repair value, acquisition rule percentage, estimated repair cost, other project costs included in rule. Use values from the document or measurement that governs this seventy percent rule question; the defaults are only the worked fixture below. Market velocity, financing, taxes and required profit vary, so the percentage is editable and a full project budget should follow. If that seventy percent rule condition is not true, choose a calculation that models the missing convention.

Fannie Mae Selling Guide B3-3.1-08, Rental Income; documented gross and net rental-income treatment documents the convention or governing rule used here. The seventy percent rule output is a transparent scenario under those facts: it does not manufacture an unentered market price, professional determination, carrier quote, legal eligibility finding or locally adopted code value.

What is seventy percent rule calculator?

Seventy Percent Rule is the relationship behind this decision: the seventy-percent rule is an investor screening heuristic, not an appraisal method or lender standard. On this page it means maximum offer = max(after-repair value × entered acquisition-rule percentage − repairs − other project costs, 0). Market velocity, financing, taxes and required profit vary, so the percentage is editable and a full project budget should follow; that is the line between the reported quantity and a broader real estate analysis.

How to use this calculator.

1. 01Confirm that “maximum offer = max(after-repair value × entered acquisition-rule percentage − repairs − other project costs, 0)” matches the seventy percent rule convention you need.
2. 02Replace the fixture values for supported after-repair value, acquisition rule percentage, estimated repair cost, other project costs included in rule with dated values from the governing record.
3. 03Keep all currencies, measurement units and time periods on the same basis before calculating.
4. 04Read maximum offer under entered rule together with this boundary: Market velocity, financing, taxes and required profit vary, so the percentage is editable and a full project budget should follow.

The formula.

The calculation uses maximum offer = max(after-repair value × entered acquisition-rule percentage − repairs − other project costs, 0). In this seventy percent rule model, the entered terms are supported after-repair value, acquisition rule percentage, estimated repair cost, other project costs included in rule. The seventy-percent rule is an investor screening heuristic, not an appraisal method or lender standard, which is why the relationship is presented under this name rather than as a universal alternative. Market velocity, financing, taxes and required profit vary, so the percentage is editable and a full project budget should follow. Calculations keep full decimal precision through the relationship and round only the returned display values.

A worked example.

Frequently asked questions.

References& sources.

1. [1]Fannie Mae Selling Guide B3-3.1-08, Rental Income; documented gross and net rental-income treatment. Retrieved 2026-08-07. access: open unless marked otherwise.
2. [2]Freddie Mac, Modeling Multifamily Potential Rental Income; current rent roll, concessions and vacancy treatment. Retrieved 2026-08-07. access: open unless marked otherwise.
3. [3]National Association of Realtors. Research and statistics. Retrieved 2026-08-07. independence: secondary-check; access: open.
4. [4]U.S. Federal Housing Finance Agency. House price index. Retrieved 2026-08-07. independence: secondary-check; access: open.
5. [5]U.S. Internal Revenue Service. Publication 544, Sales and Other Dispositions of Assets. Retrieved 2026-08-07. independence: primary; access: open.