ARV Calculator – After Repair Value

Estimate a property's After Repair Value from comparable sales, then apply the 70% rule to find your maximum allowable offer and built-in profit buffer.

Quick Facts

ARV formula
Comp $/sq ft × property sq ft
Use recently sold, renovated comparable homes in the same area.
70% rule
Max offer = ARV × 70% − repair costs
The remaining 30% of ARV covers holding, closing, and profit.

Your Results

Calculated
After Repair Value (ARV)
-
Comp $/sq ft × square footage
Maximum allowable offer
-
ARV × rule % − repair costs
Max total investment
-
Purchase + repairs cap (rule % of ARV)
Built-in buffer
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Profit + holding & closing costs

Ready

Enter comp price per square foot, property size, repair costs, and your rule percentage, then press Calculate.

What this calculator does

After Repair Value (ARV) is the estimated market value of a property once all planned renovations are complete. This tool builds ARV from comparable sales and then applies the investor's 70% rule so you can see, in one place, what the finished home should be worth and the most you can afford to pay for it today.

The formulas

Two well-established real estate formulas do the work here:

  • After Repair Value: ARV = comparable price per square foot × property square footage. The price per square foot comes from recently sold, renovated homes ("comps") that are similar to the subject property in location, size, age, and finish.
  • Maximum allowable offer (the 70% rule): MAO = ARV × 70% − repair costs. This is the most an investor should pay for the property so that purchase price plus rehab stays at or below 70% of the finished value.

From those two, the calculator also reports the maximum total investment (ARV × the rule percentage — the ceiling on purchase price plus repairs) and the built-in buffer (ARV minus that ceiling), which is the slice of value left to cover holding costs, closing and financing costs, selling commissions, and profit.

A worked example

Suppose nearby renovated comps sell for $200 per square foot and the subject house is 1,500 square feet, with $40,000 of estimated repairs. ARV = $200 × 1,500 = $300,000. At a 70% rule, the maximum total investment is $300,000 × 0.70 = $210,000, so the maximum allowable offer is $210,000 − $40,000 = $170,000. The remaining $90,000 (30% of ARV) is your buffer for holding, closing, financing, and profit.

Interpreting the output

The maximum allowable offer is a ceiling, not a target — paying less widens your margin. If repairs are large enough to push the offer to zero or below, the deal does not pencil out at that rule percentage: either the repair estimate is too high or the ARV is too low to support a purchase. Change the rule percentage to match your market; many investors use 65% in slower or riskier areas and stretch toward 75% only when demand is strong. ARV is an estimate built on comparable sales, so treat it as one input alongside a full inspection, contractor bids, and, for high-stakes purchases, a licensed appraiser or agent.

Frequently Asked Questions

How is After Repair Value (ARV) calculated?
ARV is estimated from recently sold, renovated comparable homes nearby: ARV = comparable price per square foot multiplied by the subject property's square footage. For example, comps selling at $200 per square foot times a 1,500 square foot house gives an ARV of $300,000. Use comps that are truly similar in location, size, age, and condition for the estimate to hold.
What is the 70% rule in house flipping?
The 70% rule says an investor should pay no more than 70% of a property's ARV minus estimated repair costs, so maximum allowable offer (MAO) = ARV × 0.70 − repairs. On a $300,000 ARV with $40,000 of repairs, the maximum offer is $300,000 × 0.70 − $40,000 = $170,000. The remaining 30% of ARV covers holding costs, closing costs, financing, and profit.
Why 70% and not another percentage?
The 30% margin left by the 70% rule is meant to absorb holding costs, closing and financing costs, selling commissions, and the investor's profit. In hot markets some investors stretch to 75% or higher, while in slower or riskier markets they use 65% to protect the margin. You can change the rule percentage in the calculator to match your market and risk tolerance.

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