How to Use the Max Purchase Price Calculator
Most investors approach deals forwards: "I found a property at $300K — what are the returns?" This calculator works backwards. You pick the metric you care about most, set your target, and it tells you the maximum price you can pay.
This gives you a walk-away number before you ever make an offer. If the asking price is above your calculated max, you know you need to negotiate harder or move on.
Which Target Metric Should I Use?
Cash on Cash Return
Best for comparing deals with different financing. Measures what your actual invested cash earns. Target 8-12% for buy-and-hold.
Cap Rate
Best for comparing deals regardless of financing. Measures the property's return as if you paid all cash. Target 5-8% in most markets.
DSCR
Best if you're financing through a DSCR lender. Measures whether rental income covers the debt payment. Lenders typically require 1.25x+.
Monthly Cash Flow
Best for simple budgeting. Set the minimum dollars per month you need the property to produce after all expenses. $100-300/door is common.
Related Calculators
Mortgage Calculator
Estimate your monthly payment, total interest, and see a full amortization schedule for any loan.
Cap Rate Calculator
Evaluate a property's return independent of financing — compare deals on an apples-to-apples basis.
1% Rule Calculator
Quickly screen properties by checking if the rent-to-price ratio meets the 1% threshold.
Cash on Cash Return Calculator
Measure the annual cash return on your invested dollars after mortgage and all expenses.
Frequently Asked Questions
What expenses should I include?
Include property taxes, insurance, maintenance (typically 5% of rent), property management (8-10% of rent), HOA if applicable, and utilities if landlord-paid. The calculator adds the mortgage separately based on your loan terms.
How accurate is this calculator?
This gives you a reliable ballpark for negotiations. For a full analysis including deal scoring, IRR, sensitivity analysis, and stress testing, use Proformatic's full deal analyzer.
Can I use this for BRRRR deals?
This calculator is designed for standard buy-and-hold rentals. For BRRRR deals, the math changes significantly because you refinance at the after-repair value. Use Proformatic's BRRRR analysis mode for that.