📐

After Repair Value (ARV

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Math

After Repair Value (ARV) is an estimation of a property's market value after all renovations and repairs are completed.

Reviewed by Miss Saima · MA Mathematics
Last updated:
Editorial Guidelines

⚙ Input Values

$
$
$/sq ft
sq ft

📊 Results

After Repair Value (ARV)
300000.00
$
Maximum Allowable Offer (MAO)
170000.00
$
Estimated Potential Gross Profit
110000.00
$
Estimated Return on Investment (ROI)
57.89
%
Deal Profitability Status
GREAT DEAL: Purchase price ($150,000) is below MAO ($170000)
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📐 Formula

After Repair Value (ARV) = Comparable Price/Sq Ft × Property Sq Ft
Maximum Allowable Offer (MAO) = (ARV × Rule %) - Estimated Repairs
Potential Profit = ARV - Purchase Price - Repair Costs

💡 Practical Example

✅

1,500 sq ft property with $40k rehab budget, comps averaging $200/sq ft: ARV = 1,500 × $200 = $300,000. MAO (70% Rule) = - $40,000 = $170,000. If purchased at $150,000: Profit = $300,000 - $150,000 - $40,000 = $110,000.

📖 About After Repair Value (ARV

After Repair Value (ARV) is an estimation of a property's market value after all renovations and repairs are completed. Real estate investors use the 70% Rule to protect profit margins and cover unexpected holding/closing costs.

To use the After Repair Value (ARV) & MAO Real Estate Flip Calculator, enter your Property Purchase / As-Is Price, Estimated Rehab / Repair Costs, Comparable Sales Price per Sq Ft and other values. The calculator instantly computes After Repair Value (ARV), Maximum Allowable Offer (MAO) and more. Results update in real time as you change any input — no submit button needed.

How to Use This Calculator

Enter your Property Purchase / As-Is Price (e.g. 150000 in ), Estimated Rehab / Repair Costs (e.g. 40000 in ), Comparable Sales Price per Sq Ft (e.g. 200 in /sq ft), Property Area (e.g. 1500 in sq ft), and Maximum Offer Rule Target — choose from 70% Rule (Standard Real Estate Flipping), 75% Rule (Moderate Margin), 80% Rule (High Demand / Low Risk Market). Results update instantly as you type — adjust any value to compare scenarios.

The Formula

After Repair Value (ARV) = Comparable Price/Sq Ft × Property Sq Ft

Maximum Allowable Offer (MAO) = (ARV × Rule %) - Estimated Repairs

Potential Profit = ARV - Purchase Price - Repair Costs

Worked Example

1,500 sq ft property with 40k rehab budget, comps averaging 200/sq ft:

ARV = 1,500 × 200 = 300,

000.

MAO (70% Rule) = - 40,000 = 170,

000.

If purchased at 150,000: Profit = 300,000 - 150,000 - 40,000 = 110,

000.

Understanding Your Result

Evaluate your result in the context of your specific use case and relevant industry standards or reference values. A single calculated result is a starting point — test two to three scenarios to understand how sensitive the outcome is to your key input assumptions. For high-stakes decisions, verify your result against a secondary source or subject-matter expert before acting.

💡 Mathematical Rigor & Applied Context

  • This calculator applies exact mathematical definitions following conventions established by NIST and international standards bodies.
  • Rounding errors accumulate across multi-step calculations. For precision-critical work, maintain extra significant figures through all intermediate steps.
  • Many mathematical concepts have multiple valid formulations — if a result seems unexpected, verify which convention or definition applies to your context.
  • Dimensional analysis (unit tracking) is the fastest way to catch formula errors. Every term in an equation must have consistent, compatible units.
  • Numerical methods used in digital calculators introduce floating-point precision limits (~15 significant digits for IEEE 754 double precision).
  • For statistical and probabilistic calculations, always specify whether you are working with population parameters or sample statistics — formulas differ.
  • Visualizing a problem geometrically or testing with known boundary values (zero, infinity, negative) reveals hidden errors faster than algebraic checking.
  • When in doubt, validate your result against a simplified hand calculation or a published worked example from a textbook or standards document.

Results are for informational and educational purposes only. Always verify critical decisions with a qualified professional.

❓ Frequently Asked Questions

What is the 70% rule in real estate flipping?

The 70% rule states that an investor should pay no more than 70% of the property's estimated After Repair Value (ARV) minus the cost of needed repairs.

How do you accurately estimate ARV?

Compare recent sales (within 3-6 months) of similar properties (size, age, layout) within a 0.5 to 1-mile radius that have been fully renovated.

How precise are the results?

Results are calculated to 4 decimal places using standard mathematical formulas. For integer-only problems, results are shown as exact whole numbers.

Can I use this on my phone or tablet?

Yes. The calculator is fully responsive and works on all screen sizes including smartphones, tablets, and desktops.

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