ARV Calculator
Estimate the after repair value of a property using comparable sales. Enter three recent comps and your subject property's square footage to calculate ARV, plus the 70% rule max offer and BRRRR max offer.
Comp Price per Sqft
Intro
If you buy, flip, or rent single-family houses, After Repair Value (ARV) is the number every deal hangs on. ARV is the estimated market value of a property after planned renovations are complete — not what it's worth today in its current condition. Investors use ARV to decide how much to offer, how much to budget for repairs, and whether a project will pencil out at all. Lenders that finance fix-and-flip and rehab loans also lean on ARV to size how much they'll lend.
Get ARV right and the rest of the deal has room to breathe. Get it wrong — usually by being too optimistic — and the profit margin you counted on can disappear into holding costs, closing costs, and a sale price the market never supported. This calculator gives you a fast, transparent starting estimate; the sections below explain how it gets there and how to pressure-test the result before you make an offer.
How this calculator works
ARV is an estimate of what your property will be worth after renovations, derived from recent comparable sales ("comps") — similar, already-renovated homes near your subject property that have recently sold. The calculator uses the widely taught price-per-square-foot comp method:
- Take each comparable sale's sold price and divide it by its square footage to get a price per square foot.
- Average that price per square foot across your comps.
- Multiply the average by your subject property's square footage.
The result is your estimated ARV. Because it's built from sold prices of finished homes, it approximates what a buyer would actually pay for your home once it's renovated to a similar standard.
Worked illustrative example (illustrative figures only — not market data):
Suppose three renovated comps near your property sold for:
- Comp A: $300,000 at 1,500 sq ft → $200/sq ft
- Comp B: $330,000 at 1,600 sq ft → ~$206/sq ft
- Comp C: $285,000 at 1,450 sq ft → ~$197/sq ft
Average ≈ $201/sq ft. If your subject property is 1,550 sq ft, then:
ARV ≈ $201 × 1,550 ≈ $311,550.
This is a simplified demonstration of the method, not a quote for any real property or market.
How to estimate ARV accurately
The calculator gives you a baseline. To make that baseline trustworthy:
- Use recent, nearby, sold comps. Prioritize closed sales (what buyers actually paid), not active listings or asking prices. Investor guides commonly suggest sold comps within roughly the last 90–180 days and within about a half-mile.
- Match on the fundamentals. Similar square footage, bed/bath count, age, and construction style. The closer the match, the less adjustment you need.
- Adjust for condition and size. Compare against finished, renovated homes — ideally other flips — so your ARV reflects a fully renovated end state, not a fixer-upper. A high-end kitchen remodel or other premium finishes can justify adjusting up; a more modest rehab may call for adjusting down. Adjust up or down when a comp is meaningfully larger, smaller, or in different condition.
- Get a professional second opinion. For a real offer, confirm with a local real estate agent or a Broker Price Opinion (BPO), order an appraisal, or cross-check against a home value estimator. A price-per-square-foot model is a fast screen, not a substitute for a boots-on-the-ground valuation.
How ARV drives the deal (70% rule)
Many flippers and wholesalers turn ARV into an offer using the 70% rule, a common rule of thumb:
Maximum offer ≈ (ARV × 70%) − rehab (repair) costs
The idea: don't pay more than 70% of ARV minus your repair budget. The remaining ~30% is a cushion meant to absorb holding costs, selling and closing costs, and your profit margin.
Illustrative example (illustrative figures only): If a property's ARV is $300,000 and it needs $45,000 in repairs:
($300,000 × 0.70) − $45,000 = $210,000 − $45,000 = $165,000 maximum offer.
Treat 70% as a starting guideline, not a law. Investors adjust the percentage up in hot, low-margin markets and down for riskier or slower ones. If you're modeling a rental hold rather than a flip, weigh it against your longer-term numbers using an investment property guide. Always model your actual holding, financing, and selling costs before committing.
Frequently Asked Questions
What is ARV in real estate?
ARV (After Repair Value) is the estimated market value of a property after planned renovations are finished. It answers "what will this be worth once it's fixed up?" — not what it's worth today.
How do I find comps for ARV?
Look for homes that recently sold (not just listed) near your property, similar in size, beds/baths, age, and style, and already renovated to the standard you're targeting. Aim for at least three closed sales; a local agent or the MLS is the most reliable source.
What's the difference between ARV and an appraisal?
ARV is an investor's forward-looking estimate of value after renovation, often self-calculated from comps. An appraisal is a formal valuation by a licensed appraiser, typically of the property's current condition (or, for some rehab loans, its projected post-renovation value). A lender's appraisal or BPO carries more weight than a DIY ARV estimate.
Why is it 70%?
The 70% figure is a rule of thumb: it leaves roughly a 30% margin below ARV to cover holding costs, selling and closing costs, and profit, after subtracting repairs. It's a guideline, not a guarantee — real deals require modeling your specific costs.
Is a price-per-square-foot ARV good enough to make an offer?
It's a strong first screen, but not a final answer. Confirm with a local agent, a BPO, or an appraisal before you make a binding offer.