LTV / ARV Calculator
Size a fix-and-flip loan against purchase cost, rehab budget and after-repair value.
Your numbers
Maximum loan amount
$202,500.00
Limited by loan-to-cost — the lower of the two caps
- Total project cost$225,000.00
- Cap from loan-to-cost limit$202,500.00
- Cap from loan-to-ARV limit$217,000.00
- Borrower cash needed$22,500.00
- Loan-to-cost
- 90.0%
- Loan-to-ARV
- 65.3%
- Project cost
- $225,000
- Cash needed
- $22,500
Lenders differ on whether rehab draws count toward cost basis and on which cap governs. Confirm the structure with the actual lender.
Frequently asked questions
What is loan-to-ARV?+
Loan-to-ARV compares the loan with the property's projected value after repairs. A lender that caps at 70% of ARV will not lend more than 70% of what the finished property is expected to be worth.
What is loan-to-cost?+
Loan-to-cost compares the loan with what you are spending - purchase price plus rehab budget. A lender capping at 90% of cost expects you to fund the remaining 10% yourself.
Which limit applies?+
Usually the lower of the two. The calculator computes both caps and shows which one binds, along with the cash you need to bring to close the gap between total project cost and the loan.
The two limits behind the loan
- Loan-to-cost
- The loan as a share of purchase plus rehab. It makes sure the borrower has real money in the deal.
- Loan-to-ARV
- The loan as a share of the finished value. It protects the lender if the project stalls and the property has to be sold.
- The lower one wins
- Whichever cap gives the smaller loan binds - and the gap to total cost is the cash the borrower brings.