Enter the assessed value, market value, and assessment ratio into the calculator to determine the missing variable.
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Assessed Value to Market Value Formula
The following formula is used to calculate the assessed value, market value, or assessment ratio.
AV = (MV * AR) / 100
Variables:
- AV is the assessed value
- MV is the market value
- AR is the assessment ratio (in percentage)
To calculate the assessed value, multiply the market value by the assessment ratio and then divide by 100. This formula can also be rearranged to solve for the market value or assessment ratio if the other two variables are known.
| Assessed Value ($) | Market Value ($) |
|---|---|
| 25,000 | 31,250 |
| 50,000 | 62,500 |
| 75,000 | 93,750 |
| 100,000 | 125,000 |
| 125,000 | 156,250 |
| 150,000 | 187,500 |
| 175,000 | 218,750 |
| 200,000 | 250,000 |
| 225,000 | 281,250 |
| 250,000 | 312,500 |
| 275,000 | 343,750 |
| 300,000 | 375,000 |
| 325,000 | 406,250 |
| 350,000 | 437,500 |
| 375,000 | 468,750 |
| 400,000 | 500,000 |
| 425,000 | 531,250 |
| 450,000 | 562,500 |
| 475,000 | 593,750 |
| 500,000 | 625,000 |
| *Assumes a fixed assessment ratio of 80%. Formula: Market Value = Assessed Value ÷ (Assessment Ratio / 100). At 80%, divide by 0.80 (multiply by 1.25). | |
What is Assessed Value?
The assessed value of a property is the dollar value assigned to a property by a public tax assessor for the purposes of taxation. This value is often a percentage of the market value of the property and is used to calculate property taxes. The assessment ratio is the percentage of the market value that is used to determine the assessed value. The market value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction.
How to Calculate Assessed Value?
The following steps outline how to calculate the assessed value.
- First, determine the market value of the property (MV).
- Next, determine the assessment ratio (AR).
- Next, calculate the assessed value using the formula AV = (MV * AR) / 100.
- Finally, calculate the assessed value.
- After inserting the values and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Market value of the property (MV) = $200,000
Assessment ratio (AR) = 80%