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ARV calculator (after repair value)
Estimate what a fixer-upper will be worth once it is renovated, then work backwards to the most you should pay for it.
1 · After repair value
Use renovated homes sold in the last 3–6 months, within about a mile, similar size and bedroom count.
2 · Maximum offer
70% × $350,746 − $45,000 =
Maximum allowable offer
3 · Test a price
- Purchase $180,000
- Repairs $45,000
- Holding (~4%) $14,030
- Selling + closing $31,660
- Profit $80,056
Estimated profit: $80,056 (36% on cash in).
Why the 70% rule works (and when it doesn't)
The rule packs every cost you can't see on day one into a single haircut. Selling a house usually costs 6–10% of the price in agent fees, transfer taxes and concessions. Holding it for four to six months adds loan interest, insurance, taxes and utilities. What is left is your margin for surprises and profit. Drag the price slider above and watch the green segment disappear as you pay more.
In expensive markets, 70% can price you out of every deal, so investors often use 75–80% when repair budgets are well-understood. In slow markets or on houses with unknowns (foundation, sewer line), 65% is safer.
Ready to run the whole deal, with loan, holding months and selling costs? Use the fix and flip calculator. Renovating to live in rather than flip? The renovation ROI calculator shows what individual projects add, and the renovation cost calculator helps size a repair budget.
Frequently asked questions
What is ARV?
After repair value (ARV) is what a property should sell for once planned repairs and renovations are finished, estimated from recent sales of comparable renovated homes nearby.
How do you calculate ARV?
Take the sale prices of three to five recently sold, renovated comparables, convert each to a price per square foot, average them and multiply by the subject property's square footage. Adjust for differences such as bedrooms, lot or garage.
What is the 70% rule?
A rule of thumb used by house flippers: pay no more than 70% of ARV minus repair costs. The remaining 30% is meant to cover holding costs, closing and selling costs, and profit.
How do you calculate 70% of ARV?
Multiply ARV by 0.70, then subtract the repair budget. Example: ARV $375,000 × 0.70 = $262,500; minus $50,000 of repairs gives a maximum offer of $212,500.
What is a good ARV percentage?
Investors usually mean the purchase-plus-repairs total as a share of ARV. At or below 70% is the classic target; 75–80% can work in expensive, fast-moving markets with well-understood repair budgets; above that the margin rarely covers costs.
How many comps do I need for ARV?
Three to five renovated sales from the last 3–6 months, within about half a mile to a mile, and within roughly 20% of the subject's square footage. Drop outliers rather than averaging them in.
Is ARV the same as appraised value?
Not quite. ARV is a forward-looking estimate you make before the work; an appraisal is a licensed professional's opinion of value at a point in time, often done by the lender after repairs.