ARV Calculator

This calculator helps you evaluate fix-and-flip or BRRRR deals by estimating your After Repair Value and projecting total costs and profit before you make an offer.

1. Set your ARV — enter a value directly if you already know it, or switch to the comps method and enter 3 to 6 recently sold comparable properties. The calculator averages their price per square foot and multiplies by your property's size to derive an ARV.
2. Enter your purchase price — the amount you plan to offer or have under contract. The calculator immediately checks whether you're above or below the maximum allowable offer based on your investor rule percentage.
3. Build your rehab budget — expand the Rehab Budget section and check off the work items that apply. Choose a quality level (budget, mid-range, or high-end) to auto-fill national average costs, then edit any line item to match local quotes. Add a contingency buffer for surprises.
4. Adjust deal costs — set your closing cost percentages, agent commission, holding period, and monthly carrying costs to reflect your actual deal structure.
5. Read the results — the right panel shows your estimated profit, profit margin, ROI, max allowable offer, and a deal health indicator. Green means strong margins, yellow means tight, red means the numbers don't work.

The 70% rule is the most widely used formula for quickly evaluating flip deals. It says you should pay no more than 70% of the ARV minus your rehab costs. The remaining 30% acts as a cushion that covers closing costs on both sides, holding costs during the rehab, and your profit.

The formula is simple: Max Offer = (ARV x 70%) - Rehab Costs. For example, if a property has an ARV of $300,000 and needs $50,000 in repairs, your maximum offer is ($300,000 x 0.70) - $50,000 = $160,000.

Not every deal needs exactly 70%. In fast-moving markets where properties sell quickly and holding costs stay low, experienced investors might stretch to 75% or even 80%. In slower markets or rural areas, a more conservative 65% provides extra protection against longer hold times and unexpected costs. Adjust the slider above to model different scenarios.

• Skipping the contingency — unexpected issues are nearly guaranteed. Plumbing surprises, code violations, or material delays can easily add 10 to 20 percent to your budget. Always include a buffer.
• Using a single number for rehab — a lump-sum estimate like "I think it needs $40K" invites underestimating. Break costs into categories and get line-item bids from contractors to catch hidden costs early.
• Forgetting holding costs — every extra month you own the property costs money. Hard money loan payments, insurance, taxes, and utilities add up fast and eat directly into profit.
• Over-improving for the neighborhood — high-end finishes in a mid-range market won't return the extra cost. Your renovations should match the quality level of your comps, not exceed them.
• Ignoring permits — unpermitted work can create problems at resale, from failed inspections to title issues. Budget for permits and factor them into your timeline.