How the ARV calculator estimates after-repair value
After-repair value is the value assumption for the property in its completed condition, not its current as-is state. This simplified model multiplies one reconciled comparable price per area unit by the subject area, so both inputs must use the same measurement basis.
Derive the comparable input outside the calculator from relevant closed sales and explain any adjustments you make for location, size, condition, features, and timing. The tool does not search sales, select comparables, or perform an appraisal reconciliation.
Two maximum-offer calculations answer different questions
The cost-and-profit maximum offer subtracts the entered rehab cost, purchase costs, and desired profit from ARV. It gives each of those items its own dollar amount and helps you trace which assumption moves the proposed acquisition limit.
The percentage-rule offer multiplies ARV by the percentage you choose and then subtracts rehab. Because that rule percentage combines several allowances into one shortcut, it does not replace the more detailed project budget or guarantee the resulting project profit.
Treat the 70 percent rule as an editable screen
The supporting search term “70 percent rule calculator” describes a commonly named screening method, not a mandatory ratio. EstateCalc leaves the percentage editable and does not insert it as a recommendation. Acquisition costs, financing, holding time, selling costs, and required profit differ by deal.
Use the rule offer as a quick comparison, then carry the proposed purchase price into the full fix-and-flip or wholesale model. A detailed calculation can be higher or lower because it represents actual entered cost categories rather than a single bundled percentage.
Stress-test value, repairs, and the required spread
Run a lower comparable price, a larger repair budget, and a different desired-profit amount as separate cases. Changing one input at a time shows whether the acquisition limit is most sensitive to the exit value, construction scope, or required dollar spread.
Before making an offer, verify property measurements, comparable-sale facts, repair scope, title, permits, and transaction costs. The result is an arithmetic scenario and is not an appraisal, broker price opinion, inspection, or offer recommendation.
ARV Calculator FAQ
What is ARV in real estate?
ARV means after-repair value: the assumed value of a property after the renovation scope is complete. It is different from the current as-is value.
How does this ARV calculator find value?
It multiplies the representative comparable price per area unit you enter by the subject property area. It does not retrieve an address estimate or comparable sales.
How is maximum allowable offer calculated?
The detailed maximum offer equals ARV minus rehab cost, purchase costs, and the desired dollar profit. The separate rule offer equals ARV times your selected rule percentage minus rehab.
Does the 70 percent rule always use 70 percent?
The name refers to a screening convention, but this calculator keeps the percentage editable. The input is your assumption, not a market rate, appraisal method, or recommended offer.
Should I use the rule offer or the detailed offer?
They are comparison screens with different structures. Reconcile either amount with a full project budget that includes financing, holding, selling, and deal-specific costs before making a decision.
Continue the property analysis
Compare this result with adjacent metrics, keeping each formula’s income, expense, and financing scope consistent.