House flippers use ARV to decide how much to pay. The 70% rule leaves about 30% of the ARV to cover holding, financing and selling costs plus profit. In expensive markets investors often accept 75–80%.
How to use the ARV Calculator – After Repair Value
- Estimate ARV from
- Property’s current value
- Value added by renovations
- Average area price per ft²
- Total area
- Total cost of repairs
- Investor purchase rule
- Your purchase price
- Selling and holding costs (% of ARV)
Results update as you type, and every field accepts the units shown in its menu.
How it works
Choose how to estimate ARV, then enter the values, repair costs, investor rule and selling costs.
Tips
- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.
Common mistakes to avoid
- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.
Inputs explained
| Field | What to enter |
|---|---|
| Estimate ARV from | Choose one: Current value + value of renovations, Comparable sales price per square foot |
| Property’s current value | Amount in your currency |
| Value added by renovations | Amount in your currency |
| Average area price per ft² | Amount in your currency |
| Total area | In ft² |
| Total cost of repairs | Amount in your currency |
| Investor purchase rule | In % |
| Your purchase price | Amount in your currency |
| Selling and holding costs (% of ARV) | In % |
What each result means
- Maximum bid price = [After repair value (ARV)]×[Investor purchase rule]÷100 – [Total cost of repairs]
- Expected profit = [After repair value (ARV)]×(1 – [Selling and holding costs (% of ARV)]÷100) – [Your purchase price] – [Total cost of repairs]
- ROI = [Expected profit]÷([Your purchase price] + [Total cost of repairs])×100
Example values
How the main result changes when Property’s current value changes and everything else stays at the example values above:
| Property’s current value | After repair value (ARV) |
|---|---|
| 100,000 | 160,000 |
| 150,000 | 210,000 |
| 200,000 | 260,000 |
| 250,000 | 310,000 |
| 300,000 | 360,000 |
| 400,000 | 460,000 |
Formula
ARV = current value + value of renovations, or = average comparable price per ft² × areaMaximum offer (70% rule) = ARV × 70% − repair costsProfit = ARV − purchase price − repair costs − selling costsWorked example
Inputs — Estimate ARV from: Current value + value of renovations; Property's current value: $200,000; Value added by renovations: $60,000; Average area price per ft²: $210; Total area: 1,250 ft²; Total cost of repairs: $40,000; Investor purchase rule: 70 %; Your purchase price: $140,000; Selling and holding costs (% of ARV): 8 %.
Results — After repair value (ARV) = $260,000.00; Maximum bid price = $142,000.00; Expected profit = $59,200.00; ROI = 32.89 %.
Frequently asked questions
What is ARV?
The estimated market value of a property after renovations.
What is the 70% rule?
Pay no more than 70% of ARV minus repair costs.
How do I estimate ARV?
Use recent sales of comparable renovated homes nearby.
What formula does the ARV Calculator – After Repair Value use?
ARV = current value + value of renovations, or = average comparable price per ft² × area.