LTC Calculator
Calculate Loan-to-Cost ratio for construction and development projects. Free, fast, and private.
How it works
LTC ratio = (Loan Amount ÷ Total Project Cost) × 100. Used by construction lenders to assess development project risk and determine loan amounts.
Example
$800,000 ÷ $1,000,000 × 100 = 80%.
FAQ
What is a good LTC ratio?
Most construction lenders offer LTC ratios between 70-80%, with experienced developers potentially getting up to 85%. Higher ratios mean more leverage but also more risk.
How is LTC different from LTV?
LTC (Loan-to-Cost) is based on total project costs including construction, while LTV (Loan-to-Value) is based on the completed property's appraised value.
What costs are included in total project cost?
Total project cost includes land acquisition, hard construction costs, soft costs (permits, fees, professional services), financing costs, and contingencies.
Do construction lenders use both LTC and LTV?
Yes, most construction lenders evaluate both ratios. They typically fund the lesser of the LTC percentage or LTV percentage to minimize risk.
Can LTC ratio exceed 100%?
While mathematically possible, LTC ratios over 100% are extremely rare and indicate the loan amount exceeds total project costs, which presents significant risk to lenders.