After Repair Value (ARV) Calculator

Enter your comp price per sqft, subject property size, rehab costs, and MAO rule to instantly calculate ARV, maximum allowable offer, projected profit, and deal viability.

Created by Luis GonzalezLast updated: 2026-06-08

How to Use This Calculator

1
Enter Property & Rehab Details
Input the average price per sqft from comparable sales, subject property square footage, estimated rehab costs, and MAO rule percentage (commonly 70%). Optionally expand 'Manual ARV Override' to enter your own ARV estimate.
2
Review Your Results
The calculator displays ARV, Maximum Allowable Offer, Projected Profit, Equity Captured %, Rehab as % of ARV, and Deal Viability. The Insights card shows investment return (ROI), rehab analysis, and negotiation range.

Example Calculation

A real estate investor evaluates a 1,800 sqft fix-and-flip property using local comps at $150/sqft with $45,000 in rehab costs.

Avg Price per Sqft (Comps)

$150/sqft

Subject Property Sqft

1,800 sqft

Rehab Costs

$45,000

MAO Rule

70%

Results

After Repair Value

$270,000

Maximum Allowable Offer

$144,000

Projected Profit at MAO

$81,000

Equity Captured at MAO

46.7%

Rehab as % of ARV

16.7%

Deal Viability

Viable deal

Insights card shows 42.

Tips

Thoroughly Research Comparables

ARV accuracy depends on comps. Use properties sold within 3-6 months, within 0.5 miles, with similar size and condition. In the example, a $10/sqft error in comps changes ARV by $18,000 — shifting MAO by $12,600 and profit by $5,400.

Budget Rehab Contingency

Add 10-15% contingency to rehab estimates. In the example, $45,000 rehab + 15% contingency = $51,750, which reduces MAO to $137,250 and profit to $81,000. Even with the buffer, this deal remains viable at 16.7% rehab-to-ARV.

Adjust the 70% Rule to Market

The 70% rule works for standard flips, but adjust to market conditions. Hot markets may support 75% ($157,500 MAO, $67,500 profit). Slow markets need 65% ($130,500 MAO, $94,500 profit but harder to find deals). The example's 46.7% equity capture provides strong downside protection.

The After Repair Value (ARV) Calculator estimates a property's post-renovation market value and determines your maximum offer. With $150/sqft comps on a 1,800 sqft property, the ARV is $270,000. Using the 70% rule with $45,000 in rehab, the Maximum Allowable Offer is $144,000 — yielding $81,000 projected profit (30% of ARV) and 46.7% equity capture. Total investment of $189,000 delivers a 42.9% ROI.

Calculating ARV and Maximum Offer

The ARV is derived from comparable sales, then used to calculate the Maximum Allowable Offer using an investor rule (typically 70%).

ARV = Avg Price per Sqft (Comps) x Subject Property Sqft
MAO = ARV x (MAO Rule / 100) - Rehab Costs
Projected Profit = ARV - Rehab Costs - MAO
Equity Captured = ((ARV - MAO) / ARV) x 100
Rehab % of ARV = (Rehab Costs / ARV) x 100

The 70% rule reserves 30% of ARV for holding costs (5-10%), selling costs (8-10%), and profit. Adjust the percentage based on market conditions and your risk tolerance.

💡 When planning your acquisition, our Down Payment Percentage Calculator can help determine the initial capital required.

Worked Example: Evaluating a Fix-and-Flip Opportunity

An investor evaluates a distressed property using local comparable sales.

Inputs:

Avg Price per Sqft (Comps): $150/sqft
Subject Property Sqft: 1,800 sqft
Rehab Costs: $45,000
MAO Rule: 70%

Step-by-step:

ARV: $150 x 1,800 = $270,000
MAO: $270,000 x 70% - $45,000 = $189,000 - $45,000 = $144,000
Projected Profit: $270,000 - $45,000 - $144,000 = $81,000 (30.0% of ARV)
Equity Captured: ($270,000 - $144,000) / $270,000 = 46.7%
Rehab % of ARV: $45,000 / $270,000 = 16.7% (moderate rehab)
Total Investment: $144,000 + $45,000 = $189,000 → 42.9% ROI

At $25/sqft rehab cost and 46.7% equity capture, this deal has strong margins with room to absorb unexpected costs.

💡 Before making an offer, estimate your earnest money deposit using our Earnest Money Percentage Calculator.

When to Adjust the 70% Rule

The 70% rule is a guideline, not gospel. Adjust based on market conditions:

Hot/appreciating markets (75-80%): Higher MAO acceptable when values are rising. At 75%, the example's MAO becomes $157,500 with $67,500 profit — less margin but still viable if you expect 5%+ appreciation during the hold period.
Standard markets (70%): The sweet spot for most flips. The example's $81,000 profit at $144,000 purchase provides a 42.9% ROI with strong downside protection.
Slow/declining markets (60-65%): More conservative to protect against value drops. At 65%, MAO = $130,500 with $94,500 profit potential — but finding sellers at this price is harder.
Luxury/unique properties: Standard rules may not apply. Longer hold times, higher carrying costs, and smaller buyer pools require deeper margins (55-65%).

Frequently Asked Questions

How is After Repair Value (ARV) calculated from comparables?

ARV = Average Price per Sqft from Comps x Subject Property Sqft. In the example, $150/sqft x 1,800 sqft = $270,000. Use recently sold (3-6 months), nearby (0.5 miles), similar-condition properties for comps. If you have an independent appraisal or your own estimate, use the Manual ARV Override to enter it directly.

How does the 70% rule determine the Maximum Allowable Offer?

MAO = ARV x 70% - Rehab Costs. In the example: $270,000 x 70% - $45,000 = $189,000 - $45,000 = $144,000. The 30% margin covers holding costs (~5-10% of ARV), selling costs (~8-10%), and profit. At $144,000 purchase + $45,000 rehab = $189,000 total investment, the projected $81,000 profit represents a 42.9% ROI.

What is a good equity capture percentage for a flip?

Aim for 30%+ equity captured at MAO for a strong safety buffer. In the example, 46.7% equity ($126,000 between MAO and ARV) provides excellent protection against market dips, rehab overruns, or extended holding periods. Below 20% equity is risky — a 10% market correction could eliminate your profit margin entirely.