Finance category

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Loan-to-Cost (LTC) Calculator

Calculate the loan-to-cost ratio for a construction or rehab project. LTC measures the loan against today's all-in cost — the metric most construction lenders use alongside (or instead of) LTV.

Project costs

Purchase price

Rehab / construction

Soft costs (closing, fees)

Loan

Requested loan amount

Lender max LTC

Loan-to-Cost (LTC)

80.5%

loan / total project cost

Total project cost

$323,000

Cash required

$63,000

cost not covered by loan

Lender max loan @ 85% LTC

$274,550

headroom: $14,550

Reading the number

Your requested loan is within the lender's LTC ceiling. Many construction lenders apply both an LTC cap and an LTV-of-ARV cap — the binding constraint is the lower of the two.

LTC differs from LTV: LTC measures the loan against today's all-in cost, LTV measures it against appraised value. For ground-up construction or heavy rehab, LTC is usually the more conservative ratio.

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 Loan-to-Cost (LTC) Calculator is built to give a quick, browser-based estimate for loan-to-cost (ltc). Calculate the loan-to-cost ratio for a construction or rehab project. LTC measures the loan against today's all-in cost — the metric most construction lenders use alongside (or instead of) LTV. 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 loan-to-cost (ltc) 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 loan-to-cost (ltc) 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 the purchase price, rehab/construction budget, and any soft costs (closing, points, permits).
Enter the loan amount you're requesting.
Enter the lender's maximum LTC — common ceilings are 80–90% for value-add projects.
Compare actual LTC to the lender max. If you're over, you'll need to bring more cash or request a smaller loan.
Use this side by side with LTV-of-ARV — most construction lenders apply both caps and use the lower loan amount.

Frequently Asked Questions

What is loan-to-cost?

LTC = loan amount ÷ total project cost. Total project cost is purchase price + rehab/construction + soft costs (closing, fees, permits, sometimes interest reserve). It's the construction lender's primary leverage metric.

How does LTC differ from LTV?

LTV measures the loan against appraised value. LTC measures it against actual cost. For new construction or heavy rehab, costs and value can diverge — lenders use LTC to make sure they aren't financing a project that's worth less than what's spent on it.

What's a typical LTC for a construction loan?

Ground-up construction: 70–80% LTC. Heavy rehab: 80–90% LTC. Light value-add: 85–90% LTC. Stronger sponsors and lower-risk markets get higher leverage.

Do soft costs count toward LTC?

Most lenders include hard costs (acquisition + construction) plus eligible soft costs (architect, permits, interest reserve, sometimes points). Marketing, legal, and operating reserves are typically excluded. Confirm what your lender includes.