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. For additional debt, see LTV versus combined LTV.
Read the calculation methodology and limitations.
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
Explore institutional underwriting examples. Load any scenario into the live calculator with one click to customize rates, amortization, and property valuation.
75% acquisition LTV
LTV = Loan Amount / Property ValueThe loan sits exactly at the leverage cap, so any lower appraisal would require more equity or lower proceeds.
Underwriting Metric Comparison & Lender Sizing Standards
Compare debt yield against DSCR and LTV constraints, and review typical sizing assumptions across lender types.
Standard Commercial Real Estate LTV Limits by Property Type
6 Core Sizing Tests70% – 75%75% – 80%
65% – 75%70% – 75%
65% – 70%65% – 70%
60% – 65%60% – 65%
55% – 65%60% – 65%
50% – 60%N/A
| Property Type / Strategy | Conventional Bank | Agency / CMBS | Life Company |
|---|---|---|---|
| Multifamily (Stabilized) | 70% – 75% | 75% – 80% | 60% – 65% |
| Industrial / Warehouse | 65% – 75% | 70% – 75% | 55% – 65% |
| Retail (Anchored) | 65% – 70% | 65% – 70% | 55% – 60% |
| Office (Multi-tenant) | 60% – 65% | 60% – 65% | 50% – 60% |
| Hospitality / Hotels | 55% – 65% | 60% – 65% | 50% – 55% |
| Land / Construction | 50% – 60% | N/A | N/A |
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
| LTV Ratio | Max Loan Proceeds | Borrower Equity Required | Risk Profile |
|---|---|---|---|
| 55% | $5,500,000 | $4,500,000 | Ultra-Conservative (Life Co) |
| 65% | $6,500,000 | $3,500,000 | Conservative Bank / Office |
| 70% | $7,000,000 | $3,000,000 | Standard CRE Senior Loan |
| 75% | $7,500,000 | $2,500,000 | Agency Multifamily / CMBS |
| 80% | $8,000,000 | $2,000,000 | Maximum Leverage Limit |
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.
There is no single maximum applicable to every commercial loan. Confirm the lender’s current limit and valuation basis.
No. Lenders also test DSCR and debt yield because the property must generate enough income to support the loan.