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Commercial LTV Calculator

Commercial LTV uses the lower of appraised or purchase price. This is the rule that trips up new borrowers — if you bought a property for 10M but it appraised at 9.5M, the lender sizes LTV on 9.5M, not 10M. This calculator applies that rule and returns max loan, equity required, and whether the requested loan fits.

Loan amount

Appraised value

Lender maximum LTV

Purchase price (if different)

LTV on lower of appraised/price

70.59%

Max loan at lender max LTV

$5,950,000

Minimum equity required

$2,550,000

Loan gap above max

$50,000

Within LTV limit

How the math works

Commercial LTV sizes off the lower of appraised value or purchase price. Max LTVs by asset: multifamily 75-80%, office/retail 65-70%, industrial 70-75%, hotels 60-65%. This calculator computes actual LTV on both bases, max loan, and equity required.

Lenders get conservative at higher LTVs — 75% LTV often requires guarantor recourse that 65% LTV doesn't. Balance LTV against DSCR and debt yield — whichever sizes lower binds the loan.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Commercial LTV Calculator is built to give a quick, browser-based estimate for commercial ltv. Commercial LTV uses the lower of appraised or purchase price. This is the rule that trips up new borrowers — if you bought a property for 10M but it appraised at 9.5M, the lender sizes LTV on 9.5M, not 10M. This calculator applies that rule and returns max loan, equity required, and whether the requested loan fits. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the commercial ltv result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this commercial ltv estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter loan amount, appraised value, and purchase price.
Enter lender maximum LTV.
Read actual LTV, max loan, and equity required.

Frequently Asked Questions

Why lower of appraised/price?

Protects the lender from overpayment. If you pay 10M for a 9M property, the lender sizes on 9M because the property won't support 10M on re-sale. Equity has to make up the gap.

Max LTV by asset?

Bank multifamily: 75-80%. Agency multifamily (Fannie/Freddie): up to 80%. Office/retail: 65-70%. Industrial: 70-75%. Self-storage: 70-75%. Hotels: 60-65%.

LTV vs LTC?

LTV is value-based. LTC (loan-to-cost) is cost-based (purchase + rehab + closing). Construction and value-add lenders use LTC; stabilized purchase loans use LTV.