LTV Calculator
Calculate commercial loan-to-value, maximum loan amount, equity required, and the cushion between your requested loan and lender leverage limits.
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How it works
Follow the underwriting path lenders use: input the deal, apply constraints, then read the result.
Enter loan and value
Use the proposed loan amount and the value basis the lender will underwrite, such as appraised value or purchase price.
LTV Formula
Loan-to-value compares debt proceeds to collateral value. It is the fastest leverage check, but it does not prove the property's income can support the debt.
Last reviewed by Commercial Real Estate Finance Reviewers on .
LTV = Loan Amount / Property Value
Max Loan = Property Value x Maximum LTVA $12,000,000 loan on a $16,000,000 property has 75.00% LTV. If the lender max is 70%, proceeds are capped at $11,200,000.
See This Calculator in Action
Start with a lender-style example, then adjust the calculator inputs for your deal.
Purchase leverage screen
75% acquisition LTV
- Loan amount: $12,000,000
- Property value: $16,000,000
- Maximum LTV: 75%
The loan sits exactly at the leverage cap, so any lower appraisal would require more equity or lower proceeds.
LTV vs Income-Based Tests
| Metric | Formula | Primary Risk |
|---|---|---|
| LTV | Loan / Value | Collateral leverage |
| DSCR | NOI / Debt Service | Payment coverage |
| Debt Yield | NOI / Loan | Income cushion against balance |
Common LTV Ranges
| Lender / Loan Type | Typical Max LTV | Notes |
|---|---|---|
| Bank permanent loan | 65%-75% | Often paired with 1.25x+ DSCR |
| Agency multifamily | 75%-80% | Program and affordability dependent |
| CMBS | 65%-75% | Debt yield frequently limits proceeds |
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| Purchase loan | $7,500,000 loan / $10,000,000 price | 75.00% LTV |
| Conservative life company loan | $20,000,000 value x 60% max LTV | $12,000,000 max loan |
| Cash-out refinance | $9,000,000 loan / $15,000,000 appraisal | 60.00% LTV |
Conversion reference
| Loan Type | Typical Max LTV | Common Pairing |
|---|---|---|
| Bank Permanent Loan | 65%-75% | 1.25x+ DSCR |
| Agency Multifamily | 75%-80% | DSCR and affordability constraints |
| CMBS | 65%-75% | 10%+ debt yield |
| Life Company | 55%-65% | Lower leverage, stronger assets |
Quick facts
- LTV is collateral-based, while DSCR and debt yield are income-based.
- A low LTV can still fail if NOI cannot cover debt service.
- Lenders may use the lower of purchase price or appraised value.
- Higher LTV means less borrower equity and a thinner collateral cushion.
Editorial Team
Commercial Real Estate Finance Reviewers
- Calculations reviewed against standard CRE lending formulas for DSCR, LTV, cap rate, and debt yield
- Methodology cross-checked against lender-style loan sizing using NOI, value, loan constant, DSCR, LTV, and debt yield
Our editorial team builds and reviews commercial real estate finance calculators around the way lenders actually size debt: property income, collateral value, annual debt service, and lender risk thresholds. Results are educational screening estimates, not loan quotes, tax advice, legal advice, or a commitment to lend.
Methodology: formulas are calculated from borrower-entered inputs using standard CRE underwriting relationships for NOI, debt yield, DSCR, LTV, cap rate, loan constant, and maximum loan proceeds.
Reviewer note: pages are reviewed for formula accuracy and updated when lender benchmarks or site methodology changes.
Disclaimer: results are educational estimates only and are not financial, legal, tax, valuation, or lending advice.
Frequently asked questions
LTV is loan amount divided by property value. It shows how much of the asset is financed with debt.
Many CRE loans fall between 65% and 75% LTV, with some agency multifamily loans reaching higher and life company loans often lower.
No. Lenders also test DSCR and debt yield because the property must generate enough income to support the loan.