Exit LTV Calculator

Exit LTV shows leverage at disposition. This calculator projects balance and price to measure exit capital structure.

Starting balance

Annual amortization paydown

Years to exit

Projected exit price

Exit LTV

48.14%

Exit balance

$6,740,000

Principal paid down

$1,260,000

How the math works

Exit LTV = (starting balance − cumulative amortization) ÷ exit price.

Lower exit LTV widens buyer pool by reducing refinance risk on assumption. Under-60% exit LTV is the sweet spot for assumable CMBS sales, often worth a 5-10 bps cap rate credit at disposition.

How to Use

Enter starting loan balance.
Enter annual amortization paydown.
Enter years to exit.
Enter projected disposition price.
Read exit LTV.

Frequently Asked Questions

Why track exit LTV?

Lenders underwrite exit leverage. High exit LTV increases refinance risk and pressures cap rate at sale. Projecting it helps size amortization pace and reserve strategy.

Good exit LTV?

Stabilized commercial: 55-65% is comfortable. 65-75% requires active markets. 75%+ requires strong asset class and tight markets. Pre-stabilization bridge loans routinely exceed 75% at entry but target 65-70% at exit.

Improving exit LTV?

Accelerate amortization, reinvest in NOI-driving capex, hold longer for appreciation, or commit partial prepayment from free cash flow. Each 1% paydown = 1% exit LTV improvement holding price constant.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.