After Repair Value — almost always shortened to ARV — is the single number that decides whether a fix-and-flip deal makes sense. It is what the renovated home will be worth once it is back on the market in retail condition, and every other number in a house flip offer flows from it: how much you can bid, how much profit you are left with, and whether the deal is worth risking your cash.
This free ARV calculator estimates your after repair value from comparable sales, applies the classic 70% rule to tell you the maximum allowable offer (MAO), then layers in repair costs, closing costs, and holding costs so you can see real projected profit, margin, and cash-on-cash ROI. Slide the inputs and every figure updates instantly — no spreadsheet required.
How to Use
- Enter the Median Comps Price. Pull 3 to 6 recently sold homes in the same neighborhood that are already fixed up and comparable in size, bed count, lot, and condition. Use the median sold price, not the average, because one outlier can skew the average badly.
- Set the Comp Adjustment as a percentage. If your target home is nicer than those comps (bigger kitchen, newer roof, renovated bathrooms), add a positive number such as 3%–5%. If it is worse, subtract. Leave it at 0 when you trust the comp price as-is.
- Type the Repair / Rehab Cost — your contractor's line-item estimate plus a 10%–20% contingency for surprises.
- Choose the Offer Rule Percent. The industry default is 70%; aggressive investors sometimes push to 75%, conservative ones stay at 65%. This slider lets you stress-test your own target.
- Enter the Actual Purchase Price you plan to offer. This is what turns the MAO from a ceiling into a real profit projection.
- Expand the optional fields: Buy + Sell Closing Costs (typically 5%–8% of the final sale price, covering agent commission, transfer tax, title, and loan fees), Monthly Holding Costs (mortgage, tax, insurance, utilities), and the Holding Period in months.
The result card shows your ARV, the Max Allowable Offer (70% of ARV minus repairs), total projected costs, estimated flip profit, profit margin, cash ROI, and a plain-English deal verdict.
The ARV and 70% Rule Formulas
ARV is built from comps, not from what you have into the property:
ARV = Median Comps Price × (1 + Adjustment %)
The Maximum Allowable Offer — the most you should pay to keep a healthy profit cushion — comes from the 70% rule:
MAO = ARV × 70% − Repair Costs
Why 70%? The remaining 30% is reserved for your profit (15%–20%), closing and selling costs (5%–8%), holding costs during renovation, and a buffer for cost overruns. If you pay more than the MAO, you are betting that the market will rise or that your repairs will come in under budget — two things flippers get wrong far more often than they get right.
For the profit projection, the calculator builds the full cost stack:
Estimated Profit = ARV − (Purchase Price + Repair Costs + Holding Costs + Closing Costs)
A quick worked example: comps sell for $300,000 with no adjustment, repairs are $30,000, you buy at $190,000, closing costs run 6% of ARV, and holding costs are $1,500/month for 4 months. ARV is $300,000; MAO is $180,000; total costs are $244,000; projected profit is $56,000, a 18.7% margin and about 25.5% cash ROI. That is a textbook viable flip.
Examples
Example 1 — A solid suburban flip. Comps median $300,000, no adjustment, rehab $30,000, offer $190,000, closing 6%, holding $1,500/month for 4 months. ARV $300,000, MAO $180,000, profit $56,000 — the calculator labels this a Strong deal because profit clears $50,000 and margin clears 15%.
Example 2 — A light cosmetic flip. Comps median $250,000, repair cost $0 (the home is already in good shape; you are just reselling), purchase $150,000, closing 6%, holding $1,000/month for 3 months. ARV $250,000, MAO $175,000, total costs $168,000, profit $82,000 — a 32.8% margin. This is the kind of spread you only see in cheap, in-demand markets.
Example 3 — A seven-figure luxury flip. Comps median $1,000,000, target home is 5% nicer than comps, rehab $100,000, purchase $600,000, closing 6%, holding $5,000/month for 6 months. ARV $1,050,000, MAO $635,000, total costs $793,000, profit $257,000 — a 24.5% margin. Notice the MAO ($635,000) is above your actual purchase price ($600,000), which is exactly the cushion the 70% rule is designed to create.
Example 4 — The trap deal. Comps median $220,000, but the asking price is already $210,000 and repairs are $40,000. The calculator shows MAO of $114,000 — far below the asking price. That gap is the signal: walk away or renegotiate hard. Paying $210,000 here would flip a $50,000 expected profit into a loss once closing and holding costs hit.
FAQ
What is ARV in real estate?
ARV stands for After Repair Value — the estimated price the home will sell for once all renovations are complete and it is marketed in retail condition. It is built from comparable sold homes in the same area, not from your purchase price or renovation budget. Lenders, flippers, and wholesalers all use the same ARV number to size loans, offers, and spreads.
How do I calculate ARV myself?
Start with 3–6 comparable homes that sold in the last 3 months, within a half mile, and within 200 square feet of living area. Take their median sold price, then adjust up or down for features that make your target home nicer or worse. ARV = median comp price × (1 + adjustment %). A common shortcut is to take one comp price and add a dollar adjustment for each missing or extra feature (bedroom, bathroom, garage, pool).
What is the 70% rule in house flipping?
The 70% rule says an investor should pay no more than 70% of the property's after repair value, minus the cost of repairs. The formula is MAO = ARV × 0.70 − Repair Costs. The remaining 30% covers profit, closing costs, holding costs, and a buffer. A higher percentage (75%) means you can bid more but leaves a thinner margin; a lower percentage (65%) is more conservative.
What is a good profit margin for a flip?
Most successful flippers target 15%–20% of ARV in net profit, or about $25,000–$50,000 per deal as a floor. Below 10% margin, one surprise — a bad inspection, a month longer on the market, or a small interest-rate move — can erase the profit entirely. Use this calculator's profit margin output as your deal filter, not just the raw dollar profit.
How accurate is the ARV calculator?
The calculator is only as accurate as your comps. If you use stale listings (not sold comps), ignore condition differences, or pick homes outside the neighborhood, your ARV will be optimistic. For a real offer, walk each comp, get a second opinion from a local agent, and budget a 10% contingency on repairs. Treat the output as a decision tool, not an appraisal.
What costs am I missing if I only use purchase price + repairs?
The biggest hidden costs are selling commissions (2.5%–3% to your agent plus 2.5%–3% to the buyer's agent), transfer taxes, title fees, loan origination fees, property taxes, insurance, utilities, and lawn care during the flip, plus any loan interest. Together these typically add 6%–10% of ARV — which is why the calculator asks for closing costs and holding costs explicitly.
Should I use ARV for a rental property?
ARV is a flip metric, not a rental metric. For buy-and-hold rentals, the numbers that matter are monthly cash flow, cap rate, and cash-on-cash return based on rent, not on a future resale price. You can still use ARV to size a renovation loan or a cash-out refinance, but do not judge a rental deal by the same profit margin you would expect from a flip.
Disclaimer
This ARV calculator is provided for informational purposes only and does not constitute real estate, lending, investment, or tax advice. Estimates depend on the accuracy of the comps, repair bids, and cost assumptions you enter; actual sale prices, repair expenses, and closing costs vary by market, property, and timing. Always confirm ARV with a licensed appraiser or experienced local agent, and consult a qualified real estate professional before committing capital to any fix-and-flip deal.