Fix-and-flip sizing is usually a dual cap: how much of the project cost a source will advance, and how much of the after-repair value they will stay under. The calculator uses both.
LTC — loan to cost
Project cost is purchase plus rehab (plus optional contingency). LTC is loan ÷ project cost. A higher LTC means less cash in for the work. Educational chips on this site illustrate 75–90%. That is not GI policy and not a quote.
LTARV — loan to after-repair value
LTARV is loan ÷ ARV. It keeps the advance from outrunning the finished value. Educational chips illustrate 65–75%. Enter ARV before you bid. If you leave it off, only the LTC cap applies — and that is a weaker worksheet.
Dual cap
min(project cost × LTC, ARV × LTARV) — LTC only if ARV is omitted
cash in = equity gap (project cost − loan) + points
monthly IO = loan × annual rate ÷ 12
Whichever number is smaller binds. Cash in on the worksheet is the equity gap plus points. Monthly carry is interest-only. Total carry adds points over the hold. The P&L card is the retail sale.
Term, hold, and points
Educational chips use 6–18 months and 1–4 points. Hold months can differ from the loan term — IO carry follows the hold. Edit them. They are assumptions, not a rate sheet.
See also ARV and MAO basics and the live calculator.
What this is not
These ranges are not a program matrix, a GI quote, or a commitment to lend. Capital sources set their own overlays. Broker, not a lender. Business Purpose / No Owner Occupied.