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Rehab Loan Calculator

Size a renovation loan that funds the purchase plus the rehab budget. The loan is capped by both LTV on purchase and an LTV cap on ARV — this calculator applies both rules and shows the cash you'd bring.

Project

Purchase price

Rehab budget

After-repair value

Loan terms

LTV on purchase

LTV cap on ARV

Rate

Term (years)

Rehab months

Loan amount

$268,250

purchase + rehab funded

Cash required

$36,750

your contribution at close

Payment when fully drawn

$2,207

P&I once construction is complete

Interest carry during rehab

$11,019

~50% draw assumption

Reading the number

The loan is sized to the lower of (a) total project cost and (b) the LTV cap on ARV. ARV cap = $288,750 (75% of ARV). Anything above that comes out of pocket.

Rehab loans usually disburse the construction piece in draws as work is completed. During rehab you typically pay interest only on the drawn balance, then full P&I once you finish. Plan reserves to cover both the carry and any draw delays.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Rehab Loan Calculator is built to give a quick, browser-based estimate for rehab loan. Size a renovation loan that funds the purchase plus the rehab budget. The loan is capped by both LTV on purchase and an LTV cap on ARV — this calculator applies both rules and shows the cash you'd bring. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the rehab loan result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this rehab loan estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter the purchase price, rehab budget, and projected ARV.
Enter the lender's LTV on purchase (commonly 80–90%) and LTV cap on ARV (commonly 70–80%).
Enter the rate and term — once construction is complete, the loan typically converts to standard P&I.
Enter expected rehab months so the calculator can estimate interest carry on the drawn balance.
Compare loan amount vs. project cost to see how much cash you must bring at closing.

Frequently Asked Questions

What kinds of rehab loans use this math?

FHA 203(k), Fannie Mae HomeStyle, VA renovation, and most private rehab/construction-perm loans share the structure: lender funds purchase plus rehab, draws release funds as work is completed, and the loan converts to a long-term mortgage after completion.

Why are there two LTV limits?

Purchase LTV protects the lender on day one before any rehab is done. ARV LTV protects them on the projected end value — even if you can spend the full rehab budget on paper, the loan can't exceed a percentage of what the property will actually be worth post-rehab.

How do construction draws affect interest carry?

You only pay interest on the funds disbursed, not the full approved loan. As more rehab is completed, more is drawn and the carry rises. This calculator approximates a 50% average draw across the rehab period.

How is this different from a hard money loan?

Rehab loans (especially 203(k) and HomeStyle) carry standard mortgage rates and 15–30 year terms. Hard money is short-term, asset-based, much higher rate, and intended for quick flips. Use a rehab loan when you'll keep the property long term.