Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
All-in cost as % of ARV
78.0%
Value created per rehab dollar
2.34
Total all-in cost
$214,500
Margin below ARV
$60,500
Psst — share this and help Rex grow
One click, a permanent link with your numbers baked in.
How to use this
- 1Enter purchase price ($).
- 2Enter acquisition closing costs ($).
- 3Enter rehab budget ($).
- 4Enter projected arv ($).
- 5Read your all-in cost as % of arv on the right — it updates as you type.
- 6Hit Share to keep the scenario or send it to someone.
About this calculator
Not every dollar of rehab spend creates a dollar (or more) of after-repair value, and BRRRR investors who overspend on cosmetic upgrades relative to what the neighborhood supports often find their appraisal comes in below what the rehab math assumed. This calculator compares your total acquisition-plus-rehab cost against your projected ARV to compute the all-in cost as a percentage of ARV — a widely used rule of thumb caps this at 70-75% (the same threshold hard money and BRRRR lenders often use) to leave margin for the refinance and a cushion if the appraisal disappoints. It also computes value created per rehab dollar spent, which tells you whether your specific scope of work is efficient: a kitchen and bath remodel in a starter-home neighborhood often returns $1.50-$2.50 of value per dollar spent, while over-improving beyond neighborhood comps (adding a primary suite in a market of 3-bed ranches) frequently returns less than a dollar of value per dollar spent, no matter how nice the finish level is.
Worked example
Using the values the calculator loads with:
Inputs
- Purchase price: 165000 $
- Acquisition closing costs: 4500 $
- Rehab budget: 45000 $
- Projected ARV: 275000 $
Results
- All-in cost as % of ARV: 78.0%
- Value created per rehab dollar: 2.34
- Total all-in cost: $214,500
- Margin below ARV: $60,500
What each field means
Inputs
- Purchase price ($)
- The purchase price used in the calculation, measured in $. Starts at 165000 $ so you have a working example on load.
- Acquisition closing costs ($)
- The acquisition closing costs used in the calculation, measured in $. Starts at 4500 $ so you have a working example on load.
- Rehab budget ($)
- The rehab budget used in the calculation, measured in $. Starts at 45000 $ so you have a working example on load.
- Projected ARV ($)
- The projected arv used in the calculation, measured in $. Starts at 275000 $ so you have a working example on load.
Results
- All-in cost as % of ARV
- Returned as a percentage and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Value created per rehab dollar
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total all-in cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Margin below ARV
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why is 70-75% of ARV the common ceiling?
It mirrors the LTV cap most hard money and DSCR refinance lenders use, so staying under it means your all-in cost has a realistic path to being fully refinanced out. It also builds in a buffer against appraisal risk, since ARV projections from comps are estimates, not guarantees.
What if my rehab is necessary but doesn't add much value (roof, foundation, sewer line)?
Necessary/structural rehab often returns less than a dollar of value per dollar spent because it's fixing a defect rather than adding a feature buyers pay a premium for, but skipping it isn't optional — a home with a failing roof won't appraise or sell at full ARV regardless. Budget for it separately from value-add scope and don't expect the same ROI ratio from both categories.
How do I get a realistic ARV instead of guessing?
Pull at least three to five closed comps within a half-mile, sold in the last six months, similar square footage and bed/bath count, adjusted for condition — not active listings, which reflect asking price, not proven value. An agent or appraiser doing a pre-rehab CMA is worth the cost before committing to a rehab budget.
Does this calculator account for holding costs during rehab?
No — add your financing carry, utilities, and insurance during the rehab period to the rehab cost input if you want an all-in figure that reflects true total cash invested, since holding costs during a multi-month rehab are a real and often underestimated expense.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
BRRRR Refinance Capture Calculator
How much cash you pull out (or leave in) on the refinance step.
Hard Money Bridge Loan Total Cost Calculator
Total all-in cost of a short-term hard money or bridge loan, points included.
DSCR Loan Sizing Calculator
Find the max loan a DSCR lender will approve based on property cash flow.
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). BRRRR Rehab Budget vs ARV Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/brrrr-rehab-budget-vs-arv
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/brrrr-rehab-budget-vs-arv" target="_blank" rel="noopener">BRRRR Rehab Budget vs ARV Calculator — RevenueLab</a> (2026).</p>
Source: [BRRRR Rehab Budget vs ARV Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/brrrr-rehab-budget-vs-arv) (2026).