LTV & LTC Calculator
LTV = loan ÷ value, LTC = loan ÷ cost
Enter your loan and the property value or project cost.
TL;DR LTV = loan ÷ value; LTC = loan ÷ cost A $7M loan on a $10M value is 70% LTV; against $9M cost it is 77.8% LTC. Lenders commonly cap hotel and CRE loans around 65% to 75% LTV and 70% to 80% LTC as of Q3 2026.
LTV
70.0%
LTC
77.8%
The formula
LTV = loan ÷ value × 100 · LTC = loan ÷ cost × 100
Worked example
A borrower requests a $7,000,000 loan. The property is valued at $10,000,000, so LTV = $7,000,000 ÷ $10,000,000 = 70%. The total project cost is $9,000,000, so LTC = $7,000,000 ÷ $9,000,000 = 77.8%. Working backward, the maximum loan at 70% LTV on a $10,000,000 value is $10,000,000 × 0.70 = $7,000,000.
Typical maximum leverage by loan type (indicative, as of Q3 2026)
| Loan type | Typical max LTV | Typical max LTC |
|---|---|---|
| Stabilized acquisition | 65% – 75% | 70% – 80% |
| Bridge / value-add | 70% – 75% | 75% – 85% |
| Ground-up construction | 60% – 70% | 65% – 75% |
Ranges are indicative national figures for stabilized assets and vary by market, brand, and condition. For preliminary planning only; not an offer of credit.
Frequently asked questions
What is the difference between LTV and LTC?
LTV (loan-to-value) is the loan divided by the property's appraised value; LTC (loan-to-cost) is the loan divided by the total project cost. LTV measures leverage against what an asset is worth, while LTC measures leverage against what it costs to acquire or build. Construction and value-add deals lean on LTC because there is not yet a stabilized value.
What LTV do hotel lenders offer?
As of Q3 2026, hotel and CRE lenders commonly cap loans around 65% to 75% LTV on stabilized assets, with bridge and value-add debt at the higher end and ground-up construction sized more on cost. Leverage moves with interest rates, asset quality, and sponsor strength, so confirm current terms with your lender.
How do you calculate the maximum loan from LTV?
Maximum loan = value × LTV ÷ 100. At a 70% LTV on a $10,000,000 value, the maximum loan is $10,000,000 × 0.70 = $7,000,000. If a lender also caps LTC, size the loan to the lower of the two limits.
Which is used for construction loans, LTV or LTC?
Construction loans are sized primarily on LTC because there is no stabilized value until the project is built and leased. Lenders will still check LTV against the projected stabilized or as-completed value, and they size the loan to the more conservative of the two.