Free calculator
LTV and LTC calculator for commercial real estate
Loan-to-value caps a loan against what the property is worth. Loan-to-cost caps a construction or value-add loan against what it costs. Check both against the lender's limits.
Loan-to-value—
Loan-to-cost—
Max loan at the LTV limit—
Max loan at the LTC limit—
Equity at this loan (vs value)—
Illustrative only. Not a quote, commitment or credit decision from any lender.
The formula
LTV = Loan ÷ Value LTC = Loan ÷ Total project cost
How to use it
- Enter the loan and the appraised or as-is value.
- For construction or heavy value-add, enter total project cost: land or purchase, hard costs, soft costs and reserves.
- Set the lender's limits to see the maximum loan under each.
Go deeper
GuideHow to size a commercial real estate loan →Dori runs these tests against every lender profile at once and flags the hard fails, so you only send the package to lenders whose box the deal actually fits. See lender matching
Questions
What is the difference between LTV and LTC?
LTV divides the loan by the property's value. LTC divides it by the total cost to buy or build. Construction lenders usually size on LTC and check LTV against the as-completed value.
Which value do lenders use?
Usually the lower of purchase price and appraised value on acquisitions, and the appraised as-is or as-stabilized value on refinances, depending on the program.
Get started
One closed deal covers the year.
Start on the introductory rate and see a package come out of a real deal this week.