ARV Calculator

Calculate the After Repair Value (ARV) for your real estate investment property. Estimate potential profit, ROI, and maximum purchase price for fix-and-flip projects.

Purchase Price ($)

Repair Costs ($)

Holding Costs ($)

Target ROI (%)

Comparable Properties

Enter the sale prices of at least 3 comparable properties in the area after renovation.

Comparable 1 ($)

Comparable 2 ($)

Comparable 3 ($)

Understanding ARV

After Repair Value (ARV) is the estimated value of a property after all repairs and renovations have been completed. It's a crucial metric for real estate investors, especially those involved in fix-and-flip projects, to determine if a property is a good investment.

How to Calculate ARV

Find Comparable Properties: Research recently sold properties similar in size, condition, and location to your target property after repairs.
Average the Comps: Calculate the average sale price of at least 3-5 comparable properties.
Adjust for Differences: Make adjustments for any differences in features, square footage, or condition.
Consider Market Trends: Factor in current market conditions and future trends that may affect property values.

Key Components

Repair Costs

Include all renovation expenses: materials, labor, permits, and a contingency fund (typically 10-20%) for unexpected issues. Always get multiple contractor quotes and be conservative in your estimates.

Holding Costs

Don't forget ongoing expenses during renovation: mortgage payments, property taxes, insurance, utilities, and HOA fees. These can add up quickly over several months.

70% Rule

A common guideline: never pay more than 70% of the ARV minus repair costs. This leaves room for profit and unexpected expenses. For example, if ARV is $250,000 and repairs are $50,000, max purchase = ($250,000 × 0.70) - $50,000 = $125,000.

ARV Tips for Success

Be Conservative with Estimates

Always underestimate ARV and overestimate costs. It's better to be pleasantly surprised than to lose money. Markets can shift, and renovations often take longer and cost more than expected. Build in a safety margin.

Use Recent Comparables

Only use properties that sold within the last 3-6 months. Older comps may not reflect current market conditions. Focus on properties within a half-mile radius that are similar in size and style. The more recent and similar, the more accurate your ARV estimate.

Don't Over-Improve

Match the neighborhood's standards. Installing luxury features in a modest neighborhood won't increase your ARV proportionally. Focus on smart renovations that appeal to buyers in your price range: updated kitchens, bathrooms, fresh paint, and good curb appeal.

Note: ARV calculations are estimates based on comparable properties and planned improvements. Actual values may vary based on market conditions, construction quality, timing, and unforeseen circumstances. This calculator does not account for closing costs, selling costs, financing costs, or taxes. Always perform thorough due diligence, work with qualified real estate professionals, and consider getting a professional appraisal before making investment decisions.

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