About the After Repair Value Calculator
This after repair value (ARV) calculator estimates what a property will be worth once it is fully renovated, using recent sales of comparable homes that are already in that finished condition. Enter the living area of your subject property and the sale price and size of up to four comps. Each comp’s price is converted to an adjusted price per square foot, and the average or median is applied to your subject’s square footage.
Flippers, BRRRR investors, wholesalers and hard-money lenders all start with ARV, because the purchase price, rehab budget and loan size are all set as a share of it. After the ARV, the calculator applies your rule percentage (70% by default) and subtracts the repair budget to give the maximum purchase price, and it shows the ARV range implied by the cheapest and most expensive comp.
Good comps are recent (ideally within three to six months), close by (often within half a mile), similar in size, age, bedrooms and lot, and finished to the same standard you plan. Use the adjustment field for features your renovated house will have that a comp does not, or vice versa. The result is an estimate for screening deals — an appraisal or broker price opinion is the final word.
With the default inputs, the estimated after repair value is $300,208.99. Change any value above to recalculate instantly.
How to use the after repair value calculator
- 1Enter the living area of the property you plan to renovate.
- 2Add three or four recent sales of renovated, similar homes nearby.
- 3Enter dollar adjustments for features that differ from your finished house.
- 4Choose average or median price per square foot.
- 5Enter your repair budget and rule percentage to see the maximum purchase price.
Formula and method
Each comparable sale is adjusted for differences from your finished subject property (add value for features the comp lacks, subtract for features it has that yours will not), then divided by its living area to get an adjusted price per square foot. The average — or median, which resists one unusual sale — of those figures is multiplied by the subject’s living area to estimate ARV.
The ARV range uses the lowest and highest adjusted price per square foot among the comps. The maximum purchase price applies the rule percentage to ARV to get the most you should have in the deal, then subtracts the repair budget, as in the 70% rule used by flippers.
- ARV
- After repair value of the subject property
- Adj
- Dollar adjustment for differences between comp and subject
- Rule%
- Share of ARV you are willing to invest in total (often 70%)
Worked examples
1,500 sq ft house with three renovated comps
The comps sold for $200.00, $203.45 and $196.97 per square foot, an average of $200.14. Multiplied by 1,500 sq ft, the ARV is about $300,209. At 70% that is $210,146 all-in, so after $40,000 of repairs the maximum purchase price is about $170,146.
Adding a fourth comp with a pool and using the median
The fourth comp sold for $340,000 but has a pool worth about $10,000 that the subject will not have, so it is adjusted to $330,000 ($220/sq ft). The median of the four values is $201.72/sq ft, giving an ARV of about $302,586 — the median keeps the high comp from pulling the estimate up too far.
Smaller house with adjustments and a 75% rule
After adjusting comp 1 up $5,000 (no garage) and comp 3 down $8,000 (finished basement), the comps average $194.75/sq ft, so a 1,200 sq ft house has an ARV of about $233,704. At 75% minus $25,000 of repairs, the most to pay is about $150,278.
Frequently asked questions
What is after repair value (ARV)?+
ARV is the estimated market value of a property after all planned repairs and upgrades are finished. It is based on recent sales of comparable homes already in that renovated condition, not on the property’s current as-is value.
How do you calculate ARV?+
Find three or more recently sold, renovated homes similar to yours, adjust their prices for differences, divide by square footage to get price per square foot, then multiply the average by your property’s square footage. Adding the value of improvements to the current price is not a reliable method.
How many comps do I need for ARV?+
At least three, and four to six is better. They should ideally have sold within the last three to six months, be within about half a mile in a similar neighborhood, and match the subject’s size, bedrooms, bathrooms, age and style as closely as possible.
What is the 70% rule with ARV?+
The 70% rule says a flipper should pay no more than 70% of ARV minus repair costs. For a $300,000 ARV and $40,000 of repairs, the maximum purchase price is $210,000 − $40,000 = $170,000. The remaining 30% covers transaction costs, holding costs and profit.
Should I use the average or median price per square foot?+
Use the average when the comps are tightly grouped. Use the median when one comp is noticeably higher or lower than the others, because the median is not pulled by a single outlier sale.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.