Loan-to-ARV Calculator (USA)
Size a fix-and-flip or BRRRR loan off After-Repair Value. See your maximum ARV-based loan, cash to close, flip profit, Maximum Allowable Offer (MAO), and cash-on-cash return — the "70% rule," done properly.
| Mo | Interest | Holding | Monthly carry | Cumulative carry |
|---|---|---|---|---|
| Calculate to see schedule | ||||
How to use the loan-to-ARV calculator
Four quick steps turn a flip into a full deal picture — maximum loan off ARV, cash to close, projected profit, maximum allowable offer, and a carry schedule you can download.
Enter ARV & the cap
After-repair value from comps, and your lender’s LTARV cap.
Add purchase & rehab
What you’ll pay, what the work costs, and whether rehab is financed.
Set financing & exit
Rate, points, hold period, holding costs, and selling costs.
Read results & save a PDF
See the flip P&L, offer verdict, and carry schedule, then download it.
How the numbers are calculated
The calculator sizes the loan off after-repair value, funds the acquisition up to that cap, then works down from ARV through every cost to reach profit, cash-on-cash return, and the most you can afford to offer. Here is the exact chain of math.
Worked example — $400,000 ARV, $220,000 purchase, $45,000 rehab, 6-month hold
Max loan by ARV (70%): 0.70 × 400,000 = 280,000
Purchase + rehab: 220,000 + 45,000 = 265,000 → funded loan 265,000 at 66.3% LTARV
All-in cost: 220,000 + 45,000 + 6,000 + 5,400 + 19,213 + 24,000 = 319,613
Projected profit: 400,000 − 319,613 = 80,388
≈ $80,388 profit on about $30,600 of cash — purchase and rehab fit under the cap, so the loan covers the whole acquisition and only closing, carry, and financing come out of pocket.
Loan-to-ARV & offer charts
Handy lookups for the questions people ask most — how much you can borrow, what the 70% rule allows you to offer, when a down payment appears, and what each extra month of carry costs. Ranges are general guidance; lenders and markets vary.
| After-repair value | 65% cap | 70% cap | 75% cap | 80% cap |
|---|---|---|---|---|
| $300,000 | $195,000 | $210,000 | $225,000 | $240,000 |
| $400,000 | $260,000 | $280,000 | $300,000 | $320,000 |
| $500,000 | $325,000 | $350,000 | $375,000 | $400,000 |
| $650,000 | $422,500 | $455,000 | $487,500 | $520,000 |
Max loan = cap % × after-repair value. This is the ceiling on purchase and rehab combined, not on the purchase alone — the rehab budget has to fit underneath it too.
| After-repair value | $20k rehab | $45k rehab | $70k rehab | $100k rehab |
|---|---|---|---|---|
| $300,000 | $190,000 | $165,000 | $140,000 | $110,000 |
| $400,000 | $260,000 | $235,000 | $210,000 | $180,000 |
| $500,000 | $330,000 | $305,000 | $280,000 | $250,000 |
| $650,000 | $435,000 | $410,000 | $385,000 | $355,000 |
MAO = 70% of ARV − rehab. Every rehab dollar reduces the most you can pay by a dollar, which is why an underestimated scope quietly turns a good offer into a bad one.
| Purchase price | Purchase + rehab | Max loan | Funded loan | Cash gap |
|---|---|---|---|---|
| $220,000 | $265,000 | $280,000 | $265,000 | $0 |
| $250,000 | $295,000 | $280,000 | $280,000 | $15,000 |
| $265,000 | $310,000 | $280,000 | $280,000 | $30,000 |
| $280,000 | $325,000 | $280,000 | $280,000 | $45,000 |
Based on a $400,000 ARV at a 70% cap with $45,000 of rehab. Below the cap the loan covers the whole acquisition; above it, the lender stops at $280,000 and the rest is your down payment.
| Program | Typical cap | Rehab funding | Note |
|---|---|---|---|
| Hard money fix & flip | 65 – 75% of ARV | Reimbursed by draw | The classic “70% rule” |
| Experienced-sponsor programs | 70 – 80% of ARV | Reimbursed by draw | Track record raises the cap |
| BRRRR refinance (DSCR) | 70 – 75% of value | Already complete | Seasoning may apply |
| Renovation mortgage | Up to ~96.5% as-completed | Escrowed | Owner-occupant, not investors |
Illustrative ranges, not rules. Caps move with experience, market, and scope — and some lenders quote two limits at once, such as 90% of purchase and 100% of rehab, still capped by ARV.
| Hold period | Interest | Holding costs | Total carry |
|---|---|---|---|
| 3 months | $6,956 | $2,700 | $9,656 |
| 6 months | $13,913 | $5,400 | $19,313 |
| 9 months | $20,869 | $8,100 | $28,969 |
| 12 months | $27,825 | $10,800 | $38,625 |
On a $265,000 loan at 10.5% with $900 a month in holding costs. Carry runs about $3,219 a month here, so a three-month overrun costs roughly $9,700 of profit before anything else goes wrong.
value
LTARV cap
on the offer
Rehab lending runs backwards from the finished house: start with after-repair value, apply the LTARV cap to get the biggest loan available, then subtract the rehab budget to find the most you can pay for the property.
- After-repair value — the comp-supported price once the work is finished.
- The cap — one ceiling covering purchase and rehab together, not each separately.
- The offer — cap minus rehab, and anything above it is cash you bring.
Everything the calculator works out
A handful of inputs give you the full flip picture — the loan, the cash, the profit, and the offer you can defend.
Key figures behind the analysis
Built for any rehab deal
From a first flip to a refinance-and-hold, the same calculator turns an ARV and a rehab budget into a loan, a cash requirement, and an offer you can stand behind.
Needs to know how much the lender will actually fund, how much cash to have ready, and what is left after commissions.
- Check the gap before you offer
- Budget carry for a slow sale
- Read profit after the 6% exit
Rehabbing to hold, and wants to see how much cash stays trapped in the property once the refinance lands.
- Set selling costs to zero
- Test the refi at 70–75% of value
- Watch cash left in the deal
Screening a pipeline of properties and needs a defensible number to put on paper, fast, for each one.
- Run both MAO versions
- Compare offers on annualized ROI
- Re-run when the scope changes
7 tips for underwriting a loan-to-ARV deal
A few habits keep your ARV honest and your offer defensible.
Loan-to-ARV calculator FAQ
The definition, sizing, offer, and return questions people ask most about loan-to-ARV, the 70% rule, and fix-and-flip financing.
Loan-to-ARV is the loan amount divided by the after-repair value of the property, shown as a percentage. It is the ratio rehab lenders use to cap a loan, because the collateral they are underwriting is the finished house — not the run-down one being bought today.
A $265,000 loan against a $400,000 after-repair value is 66.3% LTARV. Most hard money lenders cap somewhere between 65 and 75 percent.
The 70% rule says you should pay no more than 70 percent of after-repair value, minus the rehab budget. On a $400,000 ARV with $45,000 of rehab, that is 0.70 × 400,000 − 45,000 = 235,000.
It is a screening test, not an underwrite — it folds financing, holding, and selling costs into one round number. Use it to filter deals in seconds, then run the full profit math before you put an offer on paper.
All three divide the loan by something different. LTV measures it against the property’s value as it stands today, LTC against the total cost of the project, and LTARV against what the property should be worth once the work is done.
LTARV is the standard for rehab lending because a distressed purchase price understates the collateral, and a cost basis says nothing about what the finished house will actually sell for.
Most do, but not as cash at closing. Rehab is usually funded through draws: you complete a stage of work, the lender inspects it, and the money is reimbursed — so you float each stage before you are repaid.
The combined purchase and rehab loan still has to fit under the LTARV cap. If purchase plus rehab exceeds it, the lender funds up to the cap and the shortfall becomes your down payment.
Cash to close is the gap between purchase plus rehab and the funded loan, plus closing costs, origination points, interest, and holding costs over the hold period.
On a $400,000 ARV with a $220,000 purchase and $45,000 rehab at a 70% cap, the loan covers the whole acquisition, so the cash need is about $30,600 of closing, carry, and financing. Raise the purchase price and a gap appears immediately.
Maximum allowable offer is the most you can pay and still hit your targets. There are two worth running: the lender version — the LTARV cap minus rehab, which is the 70% rule — and the profit version — ARV minus every cost except purchase, minus the profit you want.
Your real ceiling is the lower of the two. Clearing one test while failing the other still sinks the deal, which is why the calculator shows both alongside your actual offer.
By comps — not by adding rehab spend to the purchase price. Pull recent sales of renovated homes in the same neighbourhood with similar square footage, bed and bath count, lot, and condition, ideally sold in the last three to six months.
Adjust for real differences and take the middle of the range rather than the top. Lenders order their own appraisal and size the loan off that number, so an optimistic ARV shrinks the loan and grows your down payment.
Yes, with one change: set selling costs to zero, because you are refinancing rather than selling. The rehab loan is still sized off after-repair value.
The permanent loan that replaces it is usually capped at 70 to 75 percent of appraised value once the property is stabilised. Cash left in the deal is everything you have spent minus whatever the refinance returns, and seasoning requirements can delay that payout.
General Estimating Notice: This calculator estimates a maximum ARV-based loan, funded loan, cash to close, projected profit, cash-on-cash return, and maximum allowable offer from the values and terms you enter. Interest is a simplified full-balance estimate over the hold period, and after-repair value, LTARV caps, draw schedules, fees, and terms depend on comps, your lender, and underwriting. Figures are illustrations, not a loan commitment, quote, appraisal, or financial, tax, or investment advice. Verify comps and terms with licensed professionals before making an offer. For planning purposes only.