ARV Calculator
If comparable renovated homes sold for $285,000, $300,000, and $315,000, and you adjust them by +$10,000, +$5,000, and -$5,000, the estimated ARV is $303,333.33. This ARV calculator uses three comparable sale prices and your dollar adjustments for repair scope, finish level, and marketability. It gives you a quick first-pass after-repair value estimate before you move on to a full appraisal or deeper underwriting.
Quick answer
This tool averages three adjusted comparable sale prices to estimate ARV.
What this tells you
- •This tool averages three adjusted comparable sale prices to estimate ARV.
- •A positive adjustment means your finished property should sell above that comparable. A negative adjustment means it should sell below it.
- •Use recent nearby sales that would compete with the property after the planned repairs are complete.
- •ARV is a value estimate, not projected profit or a recommended purchase price. Those decisions require separate repair, financing, holding, closing, selling, and tax estimates.
How to Use
- 1Enter three comparable sale prices from recent nearby properties.
- 2For each comparable, enter the dollar adjustment that reflects how your finished property should compare after repairs.
- 3Use positive adjustments when your finished project should sell above that comp and negative adjustments when it should sell below it.
- 4Calculate to see the adjusted comparable values, the raw average, and the estimated ARV.
- 5Use the result as a screening estimate, then confirm with local comps, agent input, or an appraisal.
- 6Keep a written reason for every adjustment. If an adjustment cannot be supported by market evidence, reconsider the comp or seek a local valuation opinion.
How It Works
Formula
Adjusted comparable = Comparable sale price + repair adjustment
ARV = (Adjusted comp 1 + Adjusted comp 2 + Adjusted comp 3) / 3The calculator starts with each comparable sale price, then adds or subtracts your dollar adjustment for the finished subject property. After all three comparables are adjusted onto the same after-repair basis, it averages them to estimate ARV. The model assumes the adjustment already captures the repair-driven difference between each comparable and your finished project.
Calculation note: values are processed in the order shown above, using the current input units.
Worked Examples
Three renovated comps with mixed adjustments
The adjusted comp prices are $295,000, $305,000, and $310,000. Averaging those three repaired comparables gives an ARV estimate of $303,333.33.
Finished project expected to trail two stronger comps
The adjusted comparable values become $325,000, $345,000, and $345,000. Their average is $338,333.33, which lines up the estimate with a slightly less polished finished product.
How average adjustments move a $300,000 comparable base
A quick view of how the final ARV shifts when the three comparable sales average $300,000 before adjustments.
| Average raw comps | Average repair adjustment | Estimated ARV |
|---|---|---|
| $300,000 | -$10,000 | $290,000 |
| $300,000 | $0 | $300,000 |
| $300,000 | +$7,500 | $307,500 |
| $300,000 | +$15,000 | $315,000 |
This table changes only the average adjustment. Real ARV work still depends on comp quality, distance, timing, size, and finish level.
Why ARV and repair cost are not the same number
A $40,000 rehab does not automatically raise value by $40,000. Some repairs simply bring a property back to marketable condition, while others add less value than they cost. That is why this tool asks you to adjust comparable sales rather than just add the rehab budget to the current value.
The better your comparable sales, the better the estimate. Try to use nearby sales from a similar time period with similar bedroom count, bathroom count, square footage, lot type, and finish level after repairs. If the comps are weak, the math can still look tidy while the valuation is off.
Build the repair scope before choosing adjustments. Walk through the roof, structure, foundation, drainage, electrical service, plumbing, heating and cooling, windows, interior finishes, kitchens, bathrooms, landscaping, permits, and code items. Contractor bids and an inspection can reveal work that is easy to miss during a short visit. Include a contingency in the rehab budget, but do not automatically add the budget to ARV. Buyers may value some improvements below their cost, while deferred maintenance may only restore normal marketability.
ARV is only one line in a flip or renovation analysis. A projected profit model usually starts with expected sale proceeds and subtracts the purchase price, rehabilitation, loan interest, lender fees, property taxes, insurance, utilities, security, maintenance, acquisition closing costs, sale closing costs, agent commissions, staging, and any applicable taxes. Holding time matters because delays can increase financing and property expenses. Calculate those items separately with conservative assumptions before making an offer.
Some investors use a percentage-of-ARV rule to screen a maximum allowable offer. That shortcut is not part of this calculator and no single percentage works in every market. Transaction costs, local margins, project size, financing terms, repair uncertainty, and competition can change an acceptable offer substantially. Treat any rule as an initial filter, then prepare a property-specific budget and downside scenario.
Common mistakes
- Using as-is sales or outdated comps instead of homes that reflect the finished condition you expect after repairs
- Assuming the rehab budget and the value increase will be the same number
- Adding large adjustments without a clear reason tied to size, condition, layout, or location
- Averaging distant or weak comps and treating the result as precise enough to replace local market judgment
- Using active listing prices as though they were closed sales without accounting for negotiation and failed listings
- Comparing price per square foot alone while overlooking layout, condition, lot utility, parking, view, flood exposure, or neighborhood boundaries
- Choosing only the highest sales and excluding lower relevant sales without a documented reason
- Treating an ARV estimate as profit before subtracting the purchase price and every project, financing, holding, sale, and tax cost
- Assuming renovation timing and resale demand will remain unchanged through completion
Limitations
This calculator uses exactly three comparable sale prices and user-entered dollar adjustments. It validates that sale prices and adjusted values are positive and that all values are finite, then rounds displayed inputs and results to two decimal places. It does not select comps, verify public records, inspect a property, estimate repairs, measure square footage, calculate a maximum allowable offer, forecast profit, or model financing. It also does not make automatic adjustments for sale date, concessions, condition, quality, bedrooms, bathrooms, layout, lot, parking, view, school boundaries, flood or hazard exposure, permits, zoning, title defects, liens, environmental concerns, or unusual property rights. It excludes purchase and sale closing costs, commissions, loan points, interest, taxes, insurance, utilities, maintenance, vacancy, staging, and holding time. Markets can move before renovations finish, and actual work can reveal hidden damage or code requirements. Automated averages cannot reproduce an appraisal or a local professional's supported judgment. Use the output as a screening range input, inspect the property, verify closed sales, obtain written repair bids, research title and permits, and test conservative cost and sale-price scenarios.
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