ARV Calculator: After Repair Value from Comps
After-repair value (ARV) is what a property should be worth once your renovation is finished. It drives everything in a flip or BRRRR deal: your maximum offer, how much a hard money lender will lend, and your profit. This ARV calculator estimates it from recent comparable sales, then applies the 70% rule and a typical lender limit.
ARV calculator
What is ARV?
ARV is the estimated market value of a property after planned repairs and improvements. It is not what the house is worth today (its "as-is" value) but what similar, fully renovated homes are selling for. Appraisers reach it with the sales comparison approach: they find recent sales of similar homes nearby and adjust for differences.
How to calculate ARV, step by step
1. Choose good comparables
Look for homes that are as close as possible to what your property will be after the rehab. Common investor rules of thumb:
- Sold, not listed, ideally within the last 3 to 6 months.
- Nearby: same neighborhood, often within about half a mile to a mile, without crossing a major road or school-district line.
- Similar in size (within about 20%), bedrooms, bathrooms, age and style.
- Renovated to the standard you plan, not distressed or estate sales.
2. Adjust for differences
If a comp has a feature your property won't (a garage, an extra bathroom), subtract its value from the comp's price; if yours will have something the comp lacks, add it. In the example, comp 3 has a finished basement our property won't, so it is adjusted down by $5,000.
3. Price per square foot
| Comp | Sale price | Sq ft | Adjustment | $ per sq ft |
|---|---|---|---|---|
| Comp 1 | $365,000 | 1,600 | — | $228.12 |
| Comp 2 | $342,000 | 1,450 | — | $235.86 |
| Comp 3 | $355,000 | 1,550 | -$5,000 | $225.81 |
The average is $229.93 per sq ft.
4. Apply it to your property
$229.93 × 1,500 sq ft = $344,897. The comps alone span $338,710 to $353,793, which is a useful reminder that ARV is an estimate, not a number to bet the whole deal on.
The 70% rule: your maximum offer
The 70% rule is a quick screen used by many flippers: maximum offer = 70% × ARV − repair costs. The other 30% of ARV has to cover selling costs, holding and financing costs, and your profit.
Here: 70% × $344,897 − $45,000 = $196,428. In expensive, fast-moving markets some investors use 75% or more (that would allow up to $213,673 here), but every point you add comes straight out of your margin for mistakes.
How lenders use ARV
Hard money lenders commonly cap the loan at around 70% to 75% of ARV, and order their own appraisal to check it. At 70%, this property supports a loan of up to $241,428. See how that fits a full deal in the hard money loan calculator.
Common ARV mistakes
- Using active listings or Zestimates instead of actual sold prices.
- Cherry-picking the best sale in the neighborhood. Use at least three comps and look at the range.
- Over-improving. A renovation can't push value far above what the neighborhood supports.
- Ignoring condition. A comp that sold as a fixer-upper tells you the as-is value, not the ARV.
Frequently Asked Questions
How do you calculate after repair value?
Find at least three recently sold, renovated homes similar to yours nearby, adjust their prices for differences, work out the average price per square foot, and multiply it by your property's square footage after repairs.
What is the 70% rule in real estate?
A guideline for flippers: pay no more than 70% of the after-repair value minus the cost of repairs. The remaining 30% covers selling, holding and financing costs plus profit.
How many comps do you need for ARV?
At least three, and more is better. Using several comps and looking at the spread between them guards against one unusual sale skewing the estimate.
Do hard money lenders lend on ARV?
Yes. Many fund up to about 70% to 75% of ARV, usually confirmed by their own appraisal, alongside limits based on the purchase price and rehab budget.
Is ARV the same as appraised value?
Not exactly. An appraisal values the property as it is on a date; ARV estimates its value after repairs. Lenders often order an "as-repaired" appraisal to confirm your ARV before funding a rehab loan.
Sources
- The sales comparison approach as used in residential appraisal (comparable sales with adjustments).
- Typical lender ARV limits as quoted in 2026 hard money lender guides; see the hard money loan calculator for details.