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HomeCalc — Canadian Mortgage & Tax Calculators

70% Rule Calculator (House Flipping)

seventy_percent_rule
Read-only

Maximum purchase price for a flip under the 70% rule (or the stricter 65%): ARV × rule − repairs, plus the profit left after repairs and the commission and closing costs on the sale.

Input Schema

NameRequiredDescriptionDefault
rulePctNoRule to apply: 70% (standard) or 65% (stricter)70
repairCostsYesTotal renovation budget in CAD
afterRepairValueYesExpected resale price after renovation (ARV) in CAD
commissionRatePctNoCommission on the sale as a percent of ARV
closingCostRatePctNoClosing costs on the sale as a percent of ARV

Schema Changelog

Changes observed during successful MCP inspections.

  1. Added

TDQS

A3.8/5.0
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already declare a safe, closed-world, read-only computation, so the burden is light. The description adds real value by disclosing what the calculation returns beyond the purchase price: the profit remaining after repairs plus the commission and closing costs on the sale. It does not state units or rounding, but the schema covers currency.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

It is a single front-loaded sentence that leads with the primary output and the formula, with no filler. The trailing clause ('plus the profit left after repairs and the commission and closing costs on the sale') is dense and slightly awkward to parse, costing it a point.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

There is no output schema, so the description must carry the return-value burden, and it does list the three result components (max price, profit after repairs, commission and closing costs). The only residual gap is whether the stated profit already nets out the purchase price, which is left for the agent to infer from the formula.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters4/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 100%, so the baseline is 3, but the description goes further by expressing how the inputs combine (ARV × rule − repairs) and by noting that commission and closing costs are charged on the sale. That formula framing tells the agent the role of rulePct, commissionRatePct, and closingCostRatePct relative to each other, not just their individual definitions.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose4/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description names a specific computation (maximum purchase price for a flip) and the exact formula (ARV × rule − repairs), so the agent knows precisely what the tool produces. It implicitly separates this from sibling calculators like house_flipping or renovation_roi by focusing on purchase-price ceiling, though it never names an alternative explicitly.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines3/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Usage is only implied: the mention of 'for a flip' and the 65%/70% variants signals the flipping context, and the description notes the stricter option exists. There is no explicit statement of when to choose this over house_flipping, renovation_roi, or cost_of_selling, and no prerequisites or exclusions are given.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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