ARV Calculator
Estimate a property's after repair value. Enter comp price per square foot in dollars, the home's square footage, and your repair budget to get ARV, a maximum offer under the 70% rule (or 65 to 80%), and the built-in margin.
Example: with Comp price per sq ft ($) 220 · Subject home size (sq ft) 1500 · Repair estimate ($) 40000 · Offer rule 70% — the classic rule → After repair value (ARV): $330,000.
- Maximum offer$191,000 (70% rule, after $40,000 repairs)
- Built-in allowance$99,000 reserved for profit, selling, holding, and financing costs
Computed by the calculator below using its default values. Change any input to see your own numbers.
ARV = comp price per square foot × subject square feet. The 70% rule: maximum offer = ARV × 0.70 − repair budget.
Where ARV comes from
After repair value is what the property should sell for once renovated, and the honest way to get it is from comparable sales — recently sold homes of similar size and style in the same area that are already in fixed-up condition. Average their sale price per square foot and multiply by your subject's square footage: $220 per square foot × 1,500 sq ft = $330,000.
The comps must match the finished product, not the current wreck. Using as-is comps understates ARV; using a remodeled comp from a nicer street overstates it. Appraisers typically weight sales from the last few months within the immediate neighborhood, adjusting for beds, baths, and lot.
The 70% rule, decoded
The classic flip screen says: pay at most 70% of ARV minus repair costs. The 30% you hold back is not all profit — it has to absorb agent commissions and closing costs when you sell, loan interest and carrying costs while you hold, and surprises in the rehab. What's left after those is your margin.
The percentage is a rule of thumb, not physics. In hot markets investors stretch to 75 or 80% and accept thinner margins; on riskier or slower properties, 65% builds in more protection. Adjust the rule to match how confident you are in the ARV and the repair bid.
How it’s calculated
ARV = comp price per square foot × subject square footage. Maximum offer = ARV × (rule ÷ 100) − repair budget; at the default this is the classic 70% rule. Built-in allowance = ARV × (100 − rule) ÷ 100, the slice reserved for profit plus selling, holding, and financing costs. All figures are pre-tax estimates.
A single price-per-square-foot average is only as good as the comps behind it — condition, layout, and location differences can swing true ARV well past this estimate, and a lender's appraisal governs what you can borrow.
70% rule maximum offers (repairs at $30,000)
| ARV | Max offer at 70% | Built-in allowance |
|---|---|---|
| $200,000 | $110,000 | $60,000 |
| $250,000 | $145,000 | $75,000 |
| $300,000 | $180,000 | $90,000 |
| $350,000 | $215,000 | $105,000 |
| $400,000 | $250,000 | $120,000 |
Computed with max offer = ARV × 0.70 − $30,000; allowance = ARV × 0.30.
Common mistakes
- Pulling comps in as-is condition — ARV needs comps that match the property after renovation.
- Assuming renovations add their cost to value dollar for dollar; a $40,000 rehab does not automatically add $40,000 of ARV.
- Treating the 30% holdback as pure profit — commissions, closing, holding, and loan costs come out of it first.
- Applying the 70% rule blindly in every market; competitive markets transact closer to 75 to 80% and slow ones deserve extra cushion.
Frequently asked questions
What is ARV and how is it calculated?
ARV (after repair value) is the expected market value once renovations are done. Estimate it as comp price per square foot × subject square footage, using recently sold, already-renovated comparables near the property.
What is the 70% rule?
A flip screening rule: maximum purchase price = ARV × 0.70 − repair costs. On a $330,000 ARV with $40,000 of repairs, that caps the offer at $191,000, leaving 30% of ARV for costs and profit.
How do I choose good comps?
Same neighborhood, similar square footage and bed/bath count, sold in roughly the last three to six months, and in renovated condition comparable to your finished product. Three to five such sales beat one perfect-looking outlier.
Does a renovation raise value by what it costs?
Rarely dollar for dollar — that's the classic trap. Value comes from what renovated homes sell for in that market, so a $40,000 kitchen in a $150-per-square-foot neighborhood can return far less than it cost.
Do lenders use ARV?
Hard-money and rehab lenders often cap loans at a percentage of ARV (and of cost), then verify with their own appraisal. Your ARV estimate gets you to the table; the appraiser's number decides the loan.