An ARV calculator helps fix-and-flip investors estimate the After-Repair Value of a distressed property using comparable sales, then calculate the Maximum Allowable Offer (MAO) using the 70% rule so you never overpay on a deal.
Comparable Sales (Comps)
Subject Property
Standard is 70%. Adjust based on your market.
How to Use the ARV Calculator
The After-Repair Value (ARV) is the single most important number in fix-and-flip investing. It determines what the property will be worth after renovations, which drives your Maximum Allowable Offer (MAO) — the most you can pay and still make a profitable deal. This free ARV calculator helps you estimate ARV from real comparable sales and instantly calculates your MAO using the 70% rule.
Step 1: Find Comparable Sales
Enter 3-5 recently sold properties that are similar to your subject property after repairs. Good comps share these traits: sold within 6 months, within 0.5-1 mile, similar sq footage (within 20%), same bed/bath count or close, and similar condition (post-renovation). Find comps on Zillow, Redfin, or by asking a local real estate agent for MLS data.
Step 2: Enter Subject Property Details
Enter the square footage, beds, and baths of your subject property as it will appear after renovations. The calculator uses your comp's price-per-square-foot data to estimate the ARV. Also enter your estimated repair costs — be thorough and add a 10-15% contingency buffer for unexpected issues.
Step 3: Set the MAO Rule Percentage
The standard is 70%, meaning you pay no more than 70% of ARV minus repair costs. In competitive markets, investors may use 72-75%. In slow markets or with higher risk, 65% is safer. The equity cushion covers your closing costs, holding costs, and profit margin.
Step 4: Interpret Your Results
The calculator shows your estimated ARV, the MAO, and a deal breakdown. The equity cushion is the buffer between your offer price and ARV — it should cover all your carrying costs and profit. If the MAO is negative or below the seller's asking price, the deal doesn't work at the 70% rule. Consider negotiating harder or walking away.
ARV Limitations
This calculator estimates ARV based on $/sq ft from comps, which is a simplified approach. Professional appraisers make detailed adjustments for lot size, age, updates, condition, and specific location differences. Use this as a quick deal-screen, then validate with a professional appraisal or experienced agent before closing.
FAQ
Is this ARV calculator free?
Yes, completely free with no signup, no account, and no usage limits. All calculations run locally in your browser.
Is my data private?
Absolutely. All calculations run entirely in your browser. Nothing is sent to any server or stored anywhere.
What is ARV in real estate?
ARV (After-Repair Value) is the estimated market value of a property after all planned renovations are complete. It's calculated by analyzing recent comparable sales of similar properties in the same area and adjusting for differences in size, condition, and features.
What is the 70% rule in fix-and-flip investing?
The 70% rule states that an investor should pay no more than 70% of the ARV minus repair costs. Formula: MAO = (ARV × 0.70) − Repair Costs. This leaves a 30% margin to cover holding costs, closing costs, and profit. Some investors use 65% or 75% depending on their market and risk tolerance.
How many comps do I need to calculate ARV accurately?
Ideally 3-5 comparable sales within the last 6 months, within 1 mile, and similar in size (within 20% sq ft), beds/baths, and condition. Fewer comps or larger adjustments reduce accuracy. A licensed appraiser uses a similar approach with formal adjustment guidelines.
How do I find comparable sales?
Comparable sales (comps) can be found on Zillow, Redfin, Realtor.com (filter by sold properties), your county assessor's website, or through a real estate agent who can pull MLS data. MLS comps from an agent are typically the most reliable.
Should I always use the 70% rule?
The 70% rule is a quick screening tool, not an exact science. In competitive markets, investors often pay 75-80% of ARV. In slower markets or with higher repair costs, 65% may be more appropriate. Always run a full profit analysis before making an offer.