ARV Calculator (After Repair Value)

After repair value is the resale value an investor believes a property can reach after a defined renovation is complete. This ARV calculator is intentionally split into two valuation paths because investors arrive at that number in two different ways. The first path starts with the current property value and adds the market value you expect the repairs to create. The second path starts with renovated comparable sales, expressed as a price per square foot, and multiplies that market price by the subject property’s area.

The calculator then turns ARV into a bid ceiling. It applies your investor purchase rule to the ARV, subtracts the renovation cost, and reports the maximum bid, the target purchase plus repairs, the profit cushion left by the rule, the ARV margin, and the return on cash outlay. Those outputs are designed for fast screening before you spend time on a deeper budget, contractor walk-through, or formal financing conversation.

How to use this ARV calculator

Choose Current value + repairs when you can defend both the as-is value and the amount of value the work will add. This is useful for cosmetic projects where the property already has a reliable market value and the renovation scope is clear. Enter the current value, the value added by repairs, the renovation cost, and the investor purchase rule.

Choose Area comps when renovated nearby properties tell the cleaner story. Enter the comparable price per square foot and the subject property’s area. The calculator multiplies those values to create ARV. Then it uses the same renovation cost and purchase rule to calculate the maximum bid.

The purchase rule field is a percent, not a decimal. Enter 70 for a 70% rule, 75 for a more aggressive target, or a lower number if the project has unusual risk. A higher rule raises the bid but lowers the cushion. A lower rule protects the investor but may make winning the property harder.

Formula used by the calculator

For the current-value method, the calculator adds the as-is value and the value created by the renovation:

$\text{ARV} = \text{current value} + \text{value added by repairs}$

For the comparable-sales method, it multiplies comparable price per square foot by the property area:

$\text{ARV} = \text{comparable price per sq ft} \times \text{property area}$

The bid ceiling follows the selected purchase rule:

$\text{maximum bid} = \text{ARV} \times \frac{\text{purchase rule}}{100} - \text{renovation cost}$

The displayed profit cushion is the amount left between ARV and the target purchase plus repairs:

$\text{projected profit cushion} = \text{ARV} - \text{maximum bid} - \text{renovation cost}$

The margin and return outputs use that same cushion:

$\text{ARV margin} = \frac{\text{projected profit cushion}}{\text{ARV}} \times 100$

$\text{return on cash outlay} = \frac{\text{projected profit cushion}}{\text{maximum bid} + \text{renovation cost}} \times 100$

If ARV is zero, the calculator reports a zero ARV margin. If maximum bid plus renovation cost is zero or negative, it reports a zero return on cash outlay, because there is no positive cash base to divide by.

Example

With the current-value method selected, the default current property value is $100,000 and the default value added by repairs is $50,000. The calculator therefore estimates:

$\text{ARV} = \$100{,}000 + \$50{,}000 = \$150{,}000$

The default renovation cost is $25,000 and the investor purchase rule is 70%. Target purchase plus repairs is:

$\$150{,}000 \times \frac{70}{100} = \$105{,}000$

The maximum bid is target investment minus repairs:

$\$105{,}000 - \$25{,}000 = \$80{,}000$

The profit cushion shown by the calculator is:

$\$150{,}000 - \$80{,}000 - \$25{,}000 = \$45{,}000$

That is a 30% ARV margin because $45,000 divided by $150,000 equals 0.30. The return on cash outlay is about 42.86% because the cash outlay used by the calculator is $80,000 plus $25,000, or $105,000. The copy text summarizes the same math: ARV $150,000 at a 70% rule minus $25,000 repairs equals an $80,000 maximum bid.

For an area-comps example, suppose renovated homes nearby sell for $180 per square foot and the property has 1,250 square feet. ARV is $225,000. With $40,000 of renovation cost and a 70% rule, target purchase plus repairs is $157,500 and the maximum bid is $117,500. The profit cushion is $67,500, again 30% of ARV because the rule is 70%.

How investors use ARV without over-trusting it

ARV is most useful as a screening number. It tells you whether the purchase price, repair budget, and resale target are in the same neighborhood before you spend money on inspections, plans, or lender applications. If the maximum bid is far below the seller’s likely minimum, move on or change the renovation scope. If the bid is close, use a detailed repair budget, a conservative resale estimate, and a timeline that includes permits, utility costs, insurance, taxes, and marketing time.

ARV also helps separate two different questions. A property can be a good home and still be a poor flip. A project can have an attractive resale price and still fail if the repair cost is understated. Pair this calculator with the mortgage calculator for financing cost, the home-affordability calculator for buyer-side limits, and the cap rate calculator if the exit might be a rental rather than a resale. For commission assumptions at sale, compare the real estate commission calculator.

Caveats and data quality checks

Use closed comparable sales whenever possible, not wishful listing prices. Match location, property type, size, bedroom count, parking, lot utility, school district, and finished condition. A luxury finish in a modest neighborhood may not create dollar-for-dollar value, while structural, roof, plumbing, or electrical issues can cost more than a cosmetic budget suggests. HUD’s 203(k) program material is a useful reminder that repair-funded purchases require documentation, eligible improvements, and lender oversight; even cash investors benefit from that level of discipline.

The calculator does not estimate closing costs, transfer taxes, utilities, insurance, financing points, hard-money interest, staging, resale commission, or income taxes. The purchase rule is meant to leave room for those items, but a single percent cannot replace a line-item project budget. Treat the result as a negotiation ceiling produced by your assumptions, not as a promise that the finished property will sell for the ARV.

Displayed results use the currency, time period, percentage, or other units named in the tool and round only for presentation; retain additional precision when carrying a result into another calculation.

Method and source limits

HUD and CFPB sources establish rehabilitation and home-buying context, not a universal after-repair value, “common 70% rule,” or purchase recommendation. Every output is an entered-assumption scenario based on the comparable price, repair uplift, renovation cost, and purchase percentage supplied. Sources and linked guidance below were accessed July 9, 2026; later revisions are outside this page version.

Sources

• HUD, Buying a Home — consumer guidance on the home purchase process and the importance of inspections, financing, and professional help.
• HUD, Section 203(k) Rehabilitation Mortgage Insurance — rehabilitation-financing context for repair scopes, eligible improvements, and documentation.
• CFPB, Owning a Home — mortgage shopping, loan estimates, and buyer planning resources.