After Repair Value Calculator
Estimates a property's after-repair value (ARV) by comparing total invested cost against recent comparable sales. Fix-and-flip investors and lenders use ARV to determine maximum allowable offer and loan sizing.
About this calculator
After Repair Value (ARV) is the estimated market value of a property after all planned renovations are completed. This calculator uses the formula: ARV = max(purchasePrice + renovationCosts, comparableSales). The comparable sales figure — derived from recently sold, fully renovated homes nearby — anchors the valuation in market reality. If your all-in cost exceeds comparable sales, the market sets the ceiling regardless of what you spend. The 70% Rule, widely used by flippers, states that your maximum purchase price should be no more than 70% of ARV minus renovation costs: Max Offer = (ARV × 0.70) − renovationCosts. Accurate ARV estimation requires pulling at least 3–5 comps within 0.5 miles, sold within 90 days, with similar size and condition. Overestimating ARV is the most common cause of unprofitable flips.
How to use
An investor buys a distressed property for $150,000 and plans $45,000 in renovations, giving a total invested cost of $195,000. Comparable renovated homes in the area have sold for an average of $240,000. ARV = max(150,000 + 45,000, 240,000) = max(195,000, 240,000) = $240,000. Applying the 70% Rule: Max Offer = (240,000 × 0.70) − 45,000 = 168,000 − 45,000 = $123,000. Since the investor paid $150,000, they are slightly above the conservative 70% threshold — their profit margin will be tighter and depends on accurate renovation cost control.
Frequently asked questions
How do I find accurate comparable sales for calculating ARV on a flip?
The most reliable comps come from the MLS (Multiple Listing Service), accessible through a licensed real estate agent or investor-friendly platforms like PropStream or Redfin. Focus on sales within 0.5 miles (or 1 mile in rural areas), closed within the last 90 days, with similar square footage (within 20%), bed/bath count, and — critically — in fully renovated or updated condition. Adjust for significant differences like garage presence, lot size, or an extra bathroom. Using distressed or unrenovated comps will understate your ARV and cause you to underprice your offer; using luxury outlier sales will overstate it and compress your profit.
What is the 70% rule in real estate fix and flip investing?
The 70% rule is a quick-filter heuristic that says a flipper should pay no more than 70% of the after-repair value minus estimated renovation costs: Max Purchase Price = (ARV × 0.70) − Renovation Costs. The 30% buffer is designed to cover holding costs (financing, taxes, insurance), selling costs (agent commissions, closing costs), and profit margin. In competitive or expensive markets, some investors use 75–80% of ARV but accept slimmer margins. The rule is a starting point, not a guarantee — actual profitability depends on accurate ARV estimation, renovation cost control, and how quickly the property sells after completion.
How do renovation costs affect the after-repair value of a property?
Renovation costs directly raise your break-even point but do not automatically increase ARV by the same amount — the market determines value, not what you spend. High-ROI renovations like kitchen updates, bathroom remodels, and curb appeal improvements typically return 60–80% of their cost in added value. Low-ROI upgrades like high-end appliances in a mid-tier neighborhood or over-improvement relative to comps may return only 30–50 cents on the dollar. The key discipline is to renovate to the neighborhood standard, not above it. Spending $80,000 on finishes in a $200,000 ARV market will not push the sale price to $280,000 — it will simply erode your profit margin.