ARV planning scope This page helps you estimate after repair value and stress-test a flip or renovation deal
with rehab contingency, selling costs, and a 70% rule offer check. It does not replace
comps, an appraisal, or lender underwriting.
Example scenarios
Workflow
How to use the two workflows
Use Estimate ARV when you want to start from today's value and a
realistic improvement lift. Use Analyze deal when you already have an
ARV from comps or an appraisal opinion and want a faster flip-planning sheet.
Result
$315,000.00
ARV is based on the as-is value plus your projected improvement lift.
Projected deal profit After selling costs, the current plan leaves
$1,300.00 in projected profit.
The 70% rule benchmark suggests a maximum offer of $112,000.00.
Adjusted rehab budget
$60,500.00
Projected net sale proceeds
$289,800.00
Profit margin on ARV
0.41%
Projected ROI on basis
0.45%
Rehab share of ARV
19.21%
Comparable sales guardrail
A 1,800 sq ft subject property at the entered renovated comp range implies these quick ARV checks before local adjustments.
Conservative comp ARV
$297,000.00
Median comp ARV
$324,000.00
Upside comp ARV
$351,000.00
The entered ARV is 2.78% below the median comp check. A wide gap is a prompt to revisit comp similarity, finish assumptions, or square footage before using the offer number.
Deal sheet
Uses your sale-cost, holding-cost, and contingency assumptions
Total basis before sale
$288,500.00
Estimated selling costs
$25,200.00
Break-even sale price
$313,586.96
Sale price for target profit
$346,195.65
70% rule maximum offer
$112,000.00
Offer gap vs entered purchase price
−$98,000.00
Value lift from current value
43.18%
Important limits
ARV is only as reliable as the comps and scope assumptions behind it. This page does not
produce an appraisal, model financing costs month by month, or replace a contractor bid,
title review, inspection, or local market analysis.
ARV calculator: estimate after repair value, flip profit, and 70% rule maximum offer
An ARV calculator is most useful when it does more than add renovation value to a purchase price. This page helps you estimate after repair value, compare the result with renovated comps, adjust rehab costs for contingency, subtract selling and holding costs, and test whether an offer still works under a 70% rule benchmark before you commit to a rehab project.
What an ARV calculator should help you decide
ARV means after repair value: the estimated value of a property once the planned improvements are complete. Rehab investors, BRRRR investors, and hard-money borrowers use it because the exit price of the finished property drives the deal's profit, refinancing room, and risk tolerance.
A thin ARV estimate is not enough on its own. An investor also needs to know how the rehab budget changes once contingency is added, how much selling costs will take from the exit price, what all-in basis looks like before sale, and whether the offer still leaves a realistic profit cushion. That is why this page combines ARV estimation with a simple deal sheet instead of reporting one headline number only.
This also explains why two people can produce different ARV opinions for the same property. ARV is not a universal statutory formula. It depends on comp selection, renovation scope, finish quality, neighborhood demand, and whether the exit assumption matches what appraisers and actual buyers in that market will support.
How this calculator estimates ARV and deal profitability
The first workflow estimates ARV from an as-is property value plus an expected value lift from improvements. That is useful when you want a rough renovation planning model before you have a firm comp-based ARV opinion. The second workflow starts from a known ARV from comps or an appraisal-style estimate and focuses on whether the deal still works once costs are layered in.
Rehab cost is increased by the contingency percentage first, because most real projects face change orders, scope drift, or hidden-condition surprises. Selling costs are then applied as a percentage of ARV to represent commissions and other disposition friction. Holding and closing costs are kept separate because they are usually cash costs that do not scale exactly with the final sale price. The result also shows break-even sale price and the sale price needed to hit the desired profit buffer, which helps expose whether the entered ARV leaves enough room for ordinary resale friction.
The 70% rule benchmark is shown as a heuristic, not a law. Many investors use a version of maximum allowable offer = ARV × 70% minus rehab. In practice, they often need to subtract other costs and a target profit buffer too. This page uses the entered rule percentage, adjusted rehab budget, holding and closing costs, and desired profit to produce a stricter maximum offer check.
Estimated ARV = as-is value + projected value lift
Simple planning formula for the estimate-ARV workflow when you are starting from today's value and expected improvement impact.
Projected profit = ARV − selling costs − purchase price − adjusted rehab budget − holding and closing costs
Basic flip-planning sheet used to show whether the current purchase-and-rehab plan leaves room for profit after the exit costs are removed.
Maximum allowable offer = ARV × rule percentage − adjusted rehab budget − holding and closing costs − desired profit
Expanded 70% rule style check that includes contingency-adjusted rehab cost plus other deal friction and a target profit buffer.
Break-even sale price = total basis before sale / (1 − selling cost rate)
Shows the resale price required to cover purchase, rehab, holding, closing, and selling costs before profit.
Using renovated comps to sanity-check after repair value
Competitor ARV tools often start with comparable sales because a renovation lift is only credible when finished buyers or appraisers are likely to support it. The comp guardrail on this page lets you enter the subject property's finished area plus conservative, median, and upside renovated comp prices per square foot. It then converts those comp assumptions into a quick ARV range beside the deal sheet.
That range is not a substitute for a proper comparable-sales grid. A subject property may need adjustments for lot size, bedroom and bathroom count, garage, basement, school district, views, condition, concessions, or the date of each sale. However, seeing the entered ARV against a low-to-high comp range is a useful discipline: if the deal only works at the top of the range, the bid may need a larger margin of safety.
Use recent, nearby, finished-condition sales whenever possible. Avoid using distressed as-is sales as renovated comps, and be cautious about mixing very different floor plans or neighborhoods. For BRRRR and rehab-financing decisions, also remember that lender and appraisal treatment can differ from an investor's quick spreadsheet.
Comp ARV check = subject finished square feet × renovated comp price per square foot
Creates conservative, median, and upside ARV guardrails from comparable finished-sale assumptions.
ARV vs median comp = (entered ARV − median comp ARV) / median comp ARV
Shows whether the working ARV is below, near, or above the median comp-based check.
Worked example: when a deal looks good on ARV but still fails the offer test
Suppose a property is expected to sell for 340,000 after renovation, the purchase price is 225,000, the rehab budget is 60,000, contingency is 10%, selling costs are 8%, and holding plus closing costs total 20,000. That produces an adjusted rehab budget of 66,000 and sale costs of 27,200. Net sale proceeds become 312,800 before comparing them with the total cash basis.
On those assumptions, the projected profit is only 1,800. The deal is technically positive, but the margin is thin enough that a modest overrun or lower resale value could erase it. That is exactly why investors compare headline ARV with all-in basis rather than treating ARV alone as proof that the project works.
If the same investor wants a 30,000 profit buffer and uses a 70% rule check, the maximum allowable offer falls below the current purchase price. That does not automatically kill the project, but it is a signal to rework the bid, cut the scope, or tighten the resale assumption before moving forward.
What this ARV estimate does not cover
This page does not produce an appraisal and should not be treated as one. It does not select comps for you, measure gross living area, judge finish quality, or account for appraisal adjustments that depend on neighborhood-specific evidence. If the project depends on a refinance, hard-money draw schedule, or lender underwriting, the real financing outcome may differ materially from the planning sheet shown here.
It also does not model financing charges month by month, taxes by jurisdiction, contractor draw timing, permit delays, appraisal repair conditions, buyer credits, or the extra risk of major structural or environmental work. Those items can change a flip outcome even when the top-line ARV looks strong. Treat the result as an early planning tool, then validate the numbers with comps, bids, and local market professionals.
Finally, ARV is not the same as a guaranteed sale price. A conservative investor should compare this estimate with a downside scenario as well as a target scenario, especially when the deal only works if the finished property sells near the top of the comp range.
CFPB appraisal rule summary for flips — Official CFPB consumer summary describing extra appraisal protections that can apply when a property has been flipped.
Frequently asked questions
What is ARV in real estate?
ARV stands for after repair value. It is the estimated value of a property after the planned renovation work is complete. Investors use it to judge resale potential, refinance room, and whether the rehab budget and purchase price still leave enough margin for profit.
Is ARV the same as an appraisal?
No. ARV is often informed by appraisal logic and comparable sales, but this calculator does not produce an appraisal. A formal appraisal uses market evidence, adjustment rules, and professional judgment that go beyond the simplified planning inputs on this page.
What does the 70% rule mean in an ARV calculator?
The 70% rule is a common investor shortcut that says a flip offer should often stay around 70% of ARV before subtracting repairs. It is only a heuristic. Different markets, financing costs, timelines, and profit targets can justify stricter or looser thresholds, which is why this page lets you change the rule percentage and subtract other costs directly.
Why can a deal show a good ARV but still be unattractive?
Because ARV does not capture everything that comes out of the exit price. Commissions, title and closing costs, utilities, insurance, financing, carrying costs, scope overruns, and a realistic profit buffer can turn a seemingly attractive ARV into a marginal or losing deal. The deal sheet is there to show that gap clearly.
How do I estimate ARV from comparable sales?
Start with recently sold renovated properties that are close to the subject property and similar in size, condition, layout, and location. Convert those comps into a price-per-square-foot range, multiply by the subject property's finished area, and then adjust conservatively for differences the simple math cannot capture. The calculator's comp guardrail is meant to support that check, not replace a full comp grid.
What is maximum allowable offer in an ARV calculator?
Maximum allowable offer, often shortened to MAO, is the highest purchase price that still leaves room for rehab costs, holding costs, selling costs, and the investor's target profit. A simple version is ARV times a rule percentage minus repairs. This page uses a stricter version that also subtracts contingency-adjusted rehab, holding and closing costs, and the desired profit buffer.
Why does the break-even sale price matter?
Break-even sale price shows the resale value needed to cover purchase price, rehab, holding, closing, and selling costs before profit. If the break-even number sits close to the target ARV, the deal has little protection against appraisal gaps, lower buyer demand, contractor overruns, or extra time on market.
Should I use the 70% rule for every market?
No. The 70% rule is a quick screening shortcut, not a universal market law. High-cost, low-margin, or slower-growth markets may require a stricter rule, while very liquid markets or low-risk cosmetic projects can sometimes support a different threshold. Use the rule percentage as a sensitivity control and compare the result with actual comps and costs.
