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Loan-to-Value After Renovation Calculator

Enter the after-repair value, loan amount, and estimated repair costs to see your ARV-LTV ratio, the maximum loan allowed under the 70% rule, and your projected equity.

Result

46.67%
$170,000.00
$160,000.00
$30,000.00

How it is calculated

Four figures come out of three dollar inputs. The ratio is LTV = loan ÷ ARV × 100. The 70% rule cap is max = 0.70 × ARV − repairs, floored at zero when repairs exceed 70% of ARV. Equity is ARV − loan and can go negative if the loan is above ARV. Headroom is max − loan: positive means your loan is under the cap, negative means it is over. ARV must be above zero, and loan and repair costs cannot be negative. The tool uses 70% and no other percentage, so a lender or investor using 65% or 75% will get a different cap. It does not subtract holding, selling or closing costs on its own.

Worked example

A house is expected to be worth $300,000 after renovation, repairs are estimated at $40,000 and you plan a $140,000 loan. LTV = 140,000 ÷ 300,000 × 100 = 46.67%. The 70% cap = 0.70 × 300,000 − 40,000 = 210,000 − 40,000 = $170,000. Equity = 300,000 − 140,000 = $160,000. Headroom = 170,000 − 140,000 = $30,000. The calculator shows an ARV-LTV of 46.67% and reports your loan as $30,000.00 under the cap.

Try this example →

Common mistakes

  • Entering the current as-is value in the ARV field. The tool needs the value after repairs; using today's lower value understates the room under the cap.
  • Treating the cap as the purchase price. The cap is the maximum total loan under the 70% rule after repair costs, so it can be well below what the seller asks.
  • Leaving the repair budget at zero. The repair cost is subtracted from the cap, so zero overstates the allowed loan.
  • Using an optimistic ARV. Equity and LTV both depend on it, so base it on comparable sold properties, not asking prices.
  • Reading a negative headroom as a rounding issue. It means the loan is above the 70% cap by that amount.

Sources

About this calculator

ARV, or after-repair value, is what a property is expected to be worth once renovations are complete — the number real estate investors anchor their offer to, rather than the current 'as-is' price. This calculator's loan-to-value ratio divides the loan amount by that ARV, and it also applies the well-known 70% rule: the maximum a house-flipper or BRRRR (Buy, Rehab, Rent, Refinance, Repeat) investor should pay is 70% of ARV minus estimated repair costs.

Hard-money and private lenders who finance fix-and-flip and BRRRR deals lend against ARV rather than purchase price precisely because the property's value after repairs — not before — is what secures their loan; staying under the 70% threshold builds in a margin for unexpected repair overruns, holding costs, and selling costs so the deal still turns a profit.

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