Guide
ARV vs as-is value
Team RE Underwrite Lab
Two prices for two conditions
As-is value is what you think the house would sell for today, in its current condition. After-repair value is what you think it could sell for after a specific scope of work. The second number is not a reward for hoping. It depends on the work getting done and on buyers paying that price later.
The ARV calculator multiplies square feet by a rate you type. It does not estimate as-is value, and it does not look up sales. You bring both opinions to this comparison.
Formula
Spread = ARV − as-is value. That spread is not profit. A closer look is spread − repairs, and even that leftover still has to pay holding costs, financing, buying costs, and selling costs.
The fix and flip calculator starts from purchase, rehab, and ARV, and it subtracts the rest. As-is value matters when you are deciding what the house is worth before the work, which may or may not equal the price a seller will take.
Example
Illustrative example. As-is value is $142,000 and ARV is $231,000, so the spread is $89,000. Repairs of $46,000 leave $43,000 before holding costs, financing, buying costs, and selling costs. These figures are made up. They are not an appraisal and not a value for any address.
If selling costs were 8% of the $231,000 ARV, that would be $18,480, and the $43,000 would shrink before interest and taxes. The flip calculator is where that full subtraction happens. This page stops at the spread so the two values stay distinct.
Common pitfalls
Subtracting repairs from ARV and calling the result your maximum offer forgets the price the seller will actually take, and it forgets selling costs. ARV minus repairs is not a contract.
Using today's as-is sales as the ARV, without a repaired condition, prices the finished house like the tired one. The rate has to match the condition in the label.
Questions
Is the spread the profit?
No. The spread is the difference between two value opinions. Profit still subtracts repairs and the costs of buying, holding, financing, and selling.
Does as-is value belong in the ARV calculator?
Only if you deliberately type an as-is price per square foot and label the result as as-is. The calculator multiplies whatever rate you give it.
Why is this example different from the ARV how-to?
That guide multiplies square feet by a rate. This one compares two value opinions. The dollar figures are different on purpose.
Can as-is value be higher than ARV?
In the arithmetic, yes, if the repairs do not raise the resale opinion. Then the spread is negative, and the work does not pay for itself even before costs.
Is either number an appraisal?
No. Both are figures you type. An appraisal is a licensed opinion. This page is a subtraction.
Example only. Not financial, investment, legal, tax, lending, or appraisal advice.
Estimates only. Not financial, legal, tax, or investment advice. RE Underwrite Lab calculators and PDF reports provide educational estimates based on the numbers you enter. Actual purchase costs, rents, expenses, financing terms, taxes, insurance, vacancy, rehab costs, refinance eligibility, and returns vary by property, market, lender, and local law (including short-term rental rules). We do not guarantee any outcome, profit, cash flow, or appraisal. Some content and tools may be generated or assisted by artificial intelligence and can contain errors. Always verify assumptions with licensed professionals and your own due diligence before making decisions.