Commercial leverage tool

Commercial LTV & LTC calculator

Compare the requested loan with a property value and recognized project cost. The calculator shows leverage arithmetic only; it does not apply a lender maximum or decide whether the financing is acceptable.

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Core formulas: LTV = loan amount ÷ lender-accepted property value. LTC = loan amount ÷ recognized project cost. These ratios answer different questions and should not be treated as interchangeable.

Commercial leverage scenario

Use the lender-relevant denominator. A purchase price, appraisal, borrower estimate and lender-accepted value can differ. Construction/development lenders can also differ on which project costs they recognize.

The figures stay in your browser and are not submitted through the website.

Why LTV and LTC can tell different stories

LTV measures debt against value. LTC measures debt against recognized project cost. A construction or development transaction can therefore have one leverage ratio against cost and another against completed or current value.

Why this calculator does not show a “maximum loan”

Maximum leverage is lender-, asset- and transaction-specific and can depend on cash flow, location, sponsor strength, project stage, recourse, marketability and other underwriting factors. Applying one website maximum would create false certainty.

About the unfinanced amounts

The calculator simply subtracts the loan from the entered value and project cost. A positive difference is not automatically the borrower’s required cash equity, and a negative difference does not represent an approvable structure. Actual equity, subordinate debt and recognized cost treatment need transaction-specific review.

Related commercial mortgage education

Read the commercial LTV guide →

Read the commercial LTC guide →

How commercial mortgages are underwritten →

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