Use our free ARV Calculator to quickly determine the After Repair Value (ARV) and Maximum Allowable Offer (MAO) for your next real estate investment. Perfect for fix & flip analysis, understanding property potential, and ensuring profitable deals.
Formula:
The After Repair Value (ARV) is the estimated market value of a property after all necessary repairs and renovations are completed. It's a critical metric for real estate investors, especially in fix & flip strategies.
Our calculator helps you determine key financial figures based on your estimated ARV, repair costs, desired profit, and other expenses:
- Projected Profit:
ARV × Desired Profit Margin - Total Project Expenses:
Estimated Repair Costs + (ARV × Estimated Selling Costs %) + Estimated Holding Costs - Maximum Allowable Offer (MAO):
ARV - Total Project Expenses - Projected Profit
Where:
- ARV: Estimated Market Value After Repairs (from comparable properties)
- Desired Profit Margin: Your target profit as a percentage of ARV
- Estimated Repair Costs: Total cost of all renovations
- Estimated Selling Costs: Realtor commissions, closing costs as a percentage of ARV
- Estimated Holding Costs: Mortgage, utilities, insurance during renovation period