Loan-to-Value (LTV) Calculator
LTV = Loan Amount ÷ Property Value × 100
What LTV controls
Loan-to-value is the loan divided by the property’s value. It governs how much equity you must bring, and it caps lender exposure if values fall.
Worked example
An $8,750,000 loan on a $12,500,000 property is 70.0% LTV, requiring $3,750,000 of equity.
Commercial LTV is lower than residential
Commercial debt is commonly capped in the 65–75% range, against residential loans that routinely exceed 80%. Expect the lower end for hospitality, special-purpose and single-tenant assets, and the higher end for stabilised multifamily and industrial.
LTV is rarely the binding constraint
This surprises people coming from residential. In commercial lending the loan is usually sized by income first — DSCR and debt yield — and LTV simply caps the result. A property can clear 70% LTV comfortably and still only support a much smaller loan on coverage.
Note also that “value” means the lender’s appraised value, not your purchase price. They are frequently not the same number.