HesapHanem

After Repair Value Calculator

Enter the size, comparable price per square foot and repair cost to estimate the ARV.

How it is calculated

Enter the property's living area in square feet, the price per square foot of comparable renovated sales, and optionally the repair budget and your purchase price. Results are in US dollars. The tool calculates ARV = sqft × comp price per sqft, then the investor rule max offer = 0.70 × ARV − repairs. If you also enter a purchase price it adds estimated profit = ARV − purchase − repairs.

Square footage and comp price per sq ft must be above zero and repairs cannot be negative; otherwise there is no result. An empty repairs field counts as zero, and the profit line appears only when a purchase price is given. The 70% share is a fixed rule of thumb, not a legal or market standard, and it varies by market and by investor. Profit here deducts only the purchase and repairs. Closing fees, loan interest, holding costs, taxes and agent commissions are not included, so real profit will be lower.

Worked example

A 1,800 sq ft house in an area where renovated comps sell at 200 per sq ft, needing 50,000 of repairs and offered at 230,000. ARV: 1,800 × 200 = 360,000. Maximum offer: 0.70 × 360,000 = 252,000, minus 50,000 repairs = $202,000.00. Estimated profit at the 230,000 price: 360,000 − 230,000 − 50,000 = $80,000.00. The ARV itself is $360,000.00. Because 230,000 is above the 202,000 maximum, the deal fails the 70% rule despite the paper profit.

Try this example →

Common mistakes

  • Using comps that were not renovated. Price per square foot from unrenovated homes understates the after-repair value.
  • Entering square metres. The tool expects square feet; a 150 m² home is about 1,615 sq ft.
  • Treating the estimated profit as take-home. It leaves out closing costs, interest, insurance, utilities and selling costs, which can use up a large part of it.
  • Forgetting the repairs figure. Leave it blank and the maximum offer is simply 70% of ARV, which is too high for a house that needs work.
  • Applying 70% in every market. It is a rule of thumb, so in expensive or slow markets investors often use a different percentage.

About this calculator

After repair value (ARV) estimates what a property will be worth once renovations are complete, calculated by multiplying the property's square footage by the price per square foot of comparable, already-renovated properties in the same area ("comps"). The widely used 70% rule then works backward from that number: maximum purchase offer = (ARV × 0.70) − estimated repair costs, leaving room for buying costs, holding costs, and profit margin.

Real estate investors and house flippers use this pair of calculations together to decide how much they can afford to pay for a distressed property before renovation, so that even after paying for repairs and transaction costs, the deal still leaves a workable profit margin.

Was this helpful?

You can pick up to 3 reactions.

Comments (1)

  • Editorial team

    The comp price per square foot is the shakiest input, so run the tool twice, once with a cautious comp and once with an optimistic one. Every 10 per sq ft on an 1,800 sq ft house moves the ARV by 18,000 and the 70% maximum offer by 12,600. If the deal only works with the optimistic comp, treat it as marginal. How many comps do you usually average before trusting a number?

Popular calculators

Loan Calculator

Monthly payment, total interest and full amortization schedule.

Percentage Calculator

Percent change, percent of, and ratio calculations.

Discount Calculator

Calculate final price, savings, and discount amount.

BMI Calculator

Body mass index from height and weight (metric or imperial).

Age Calculator

Compute your exact age in years, months and days from a birth date.

Compound Interest Calculator

Calculate the final amount and interest earned with compounding.

All Calculators