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How do I calculate after repair value (ARV)?

Updated October 20, 2026 · by ROW Home Solutions

Short answer: ARV is what a property should sell for after the planned work is done. Estimate it from recent sales of similar, updated homes nearby. As a cross-check, add the value each improvement is expected to add to today's price. The free ROW Improvement Planner (Investor mode) does both and shows the 70% rule, equity created and a BRRRR refinance view.

Two ways to estimate ARV

1. Comps (best): find 3–5 sold homes, similar in size, beds/baths, age and location, that are already in the condition you're planning. Adjust for differences.
2. Price + value added (cross-check): today's price plus each project's expected value added. For national reference points, see the Remodeling 2025 Cost vs. Value Report (national averages; © 2025 Zonda Media, a Zonda company). Example: fiber-cement siding 113.7% of cost recouped, vinyl windows 75.5%, an ADU 41.3%.

The 70% rule

A quick screen many flippers and BRRRR investors use: maximum price = ARV × 70% − repair costs. With a $300,000 ARV and $40,000 of repairs: $300,000 × 0.70 − $40,000 = $170,000. It leaves room for closing, holding and selling costs and profit, but it's a rule of thumb, not a guarantee.

ARV and the BRRRR refinance

In buy, rehab, rent, refinance, repeat, the lender sizes the new loan from the appraised ARV. A worked example: new loan = ARV × loan-to-value. Cash back = new loan − the old loan − refinance costs. What you didn't get back is your cash left in the deal. Lenders set the LTV, seasoning period and rate.

Max price (70% rule) = ARV × 0.70 − repairs
Equity created       = ARV − (price + closing + repairs + holding)
Cash back at refi    = ARV × LTV − old loan − refi costs

Quick answers

What is after repair value (ARV)?

ARV is the estimated value of a property after planned repairs and improvements are completed, usually based on recent sales of similar updated homes nearby.

How do you calculate ARV?

Use 3–5 recent comparable sales of updated homes and adjust for differences. As a cross-check, add the expected value added by each improvement to the current price.

What is the 70% rule?

Maximum purchase price equals 70% of ARV minus repair costs. With a $300,000 ARV and $40,000 of repairs, the maximum price is $170,000.

How does ARV affect a BRRRR refinance?

The new loan is typically a percentage of the appraised ARV (loan-to-value). Cash back equals the new loan minus the old loan and refinance costs.

Is there a free ARV calculator?

Yes. The ROW Improvement Planner (Investor mode) calculates ARV, the 70% rule, equity created, cash flow, cash-on-cash and a BRRRR refinance view. Free, no signup.