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After Repair Value (ARV) Calculator

Estimate a property's after-repair value (ARV), the 70% rule max offer, potential profit and ROI for flipping.

Input Data

Property Value
HK$
Value Of Renovations
HK$
Renovation Cost
HK$
Purchase Rule Percent
%

Results

Estimated value after renovation.
HK$1,500,000
Highest offer suggested by the rule.
HK$800,000
ARV minus offer minus renovation cost.
HK$450,000
Profit / (offer + renovation cost).
42.86%

At a glance:ARV = current value + renovation value added. Max offer = ARV x offer rule% - renovation cost (commonly 70%). Potential profit = ARV - max offer - renovation cost. Potential ROI = profit / (offer + renovation cost) x 100%. The 70% rule reserves ~30% for fees, commission, holding costs and profit.

Formula

ARV = current value + renovation value added.

Max offer = ARV x offer rule% - renovation cost (commonly 70%).

Potential profit = ARV - max offer - renovation cost.

Potential ROI = profit / (max offer + renovation cost) x 100%.

How to Use

  1. Enter the current value and the expected renovation value added.
  2. Enter the renovation cost and the offer rule (commonly 70%).
  3. View ARV, max offer, potential profit and ROI.

FAQ

Why the 70% rule?

The 70% rule is a flipping rule of thumb: cap your offer at 70% of ARV minus renovation cost, reserving ~30% for transaction fees, commission, holding costs and profit. If confident on value or able to cut costs, some investors raise it to 75% to win deals.

Is the ARV accurate?

ARV is an estimate from current value and expected uplift, not a guarantee. Actual value depends on market, renovation quality and comparable sales. Use recent local transactions, professional valuation and several scenarios, with a buffer against overpaying.

Does it include transaction fees and tax?

No. The 70% rule reserves a buffer but does not itemise stamp duty, agency commission, legal fees or holding-period interest and rates. Add these to confirm profit covers all costs.

For Hong Kong flipping, what extra costs apply?

The reserved buffer must cover Hong Kong-specific costs: Ad Valorem Stamp Duty (AVD) on purchase, and possibly Special Stamp Duty (SSD) and Buyer's Stamp Duty (BSD) if not a first-time buyer or for short holding; agency commission (~1% each side); legal fees; holding-period mortgage interest, management fees, rates and government rent; and selling commission. Short-term flips can trigger heavier stamp duty — check applicable rates first, as these eat into profit.

70% or 75% rule?

Depends on confidence and cost control. 70% is conservative (30% buffer) — good in uncertain markets or for beginners. 75% wins more deals but lowers profit and ROI — for confident veterans who can control renovation and holding costs. Start at 70% for a safety floor, then fine-tune by project confidence, keeping a buffer for surprises.

Related Tools

References

Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.

Found a problem with the results?

If this calculator's result is wrong, or you have any question about the calculation logic, please let us know. You are viewing:After Repair Value (ARV) Calculator（/finance/arv）。