ARV Calculator (After Repair Value)
Calculate After Repair Value for real estate flips using comparable sales, the 70% rule, ROI, and maximum allowable offer analysis.
Add 3–6 recent comparable sales. Adjustments are added to the comp price (positive = subject is better, negative = subject is worse).
About
After Repair Value (ARV) is the estimated market value of a property after all renovations are complete. Miscalculating ARV by even 5% on a $300,000 property means $15,000 in phantom equity that does not exist. Investors who rely on gut instinct instead of adjusted comparable sales data routinely overpay at acquisition, leaving negative spread after carrying costs, closing fees, and contractor overruns. This calculator implements both the comparable sales approach and the cost approach, cross-referenced against the 70% rule to compute your Maximum Allowable Offer (MAO). It assumes arm's-length transactions and does not account for distressed-market discounts or zoning changes that could shift value post-rehab.
Provide at least three recent comparable sales within a 1-mile radius and adjust each comp for differences in square footage, condition, lot size, and amenities. The tool outputs ARV, equity spread, return on investment, and MAO. Note: comps older than 6 months lose reliability in volatile markets. Always verify with a licensed appraiser before committing capital.
Formulas
The primary valuation uses the Comparable Sales Approach. Each comparable property's sale price is adjusted for differences, then averaged to produce the ARV.
Where Si = sale price of comparable i, Ai = net adjustment for comparable i (positive if subject property is superior, negative if inferior), and n = number of comparable properties.
The 70% Rule determines the Maximum Allowable Offer to maintain profit margin:
Where R = total estimated repair costs. The 0.70 factor reserves 30% for profit, closing costs, holding costs, and contingency.
Return on Investment:
Where P = purchase price, R = total repair costs, C = carrying and closing costs.
Reference Data
| Repair Category | Typical Cost Range | ARV Impact | ROI Priority |
|---|---|---|---|
| Kitchen Remodel (Mid-Range) | $15,000 - $35,000 | 60 - 80% cost recovery | High |
| Bathroom Remodel | $8,000 - $20,000 | 55 - 75% cost recovery | High |
| Roof Replacement | $5,000 - $15,000 | 50 - 65% cost recovery | Critical (deal-breaker) |
| HVAC System | $4,000 - $12,000 | 40 - 60% cost recovery | Medium |
| Flooring (Hardwood) | $3,000 - $10,000 | 70 - 85% cost recovery | High |
| Exterior Paint | $2,000 - $6,000 | 50 - 70% cost recovery | High (curb appeal) |
| Interior Paint | $1,500 - $4,000 | 100 - 150% cost recovery | Very High |
| Electrical Upgrade | $3,000 - $10,000 | 30 - 50% cost recovery | Critical (code compliance) |
| Plumbing Overhaul | $2,500 - $8,000 | 30 - 50% cost recovery | Critical (code compliance) |
| Foundation Repair | $5,000 - $30,000 | 20 - 40% cost recovery | Critical (structural) |
| Windows Replacement | $3,000 - $12,000 | 60 - 75% cost recovery | Medium |
| Landscaping | $1,000 - $5,000 | 80 - 120% cost recovery | High (first impression) |
| Garage Addition | $20,000 - $50,000 | 60 - 80% cost recovery | Market-dependent |
| Basement Finishing | $10,000 - $30,000 | 50 - 70% cost recovery | Market-dependent |
| Siding Replacement | $5,000 - $15,000 | 75 - 85% cost recovery | Medium |
| Deck/Patio Addition | $4,000 - $15,000 | 60 - 75% cost recovery | Medium |