LTC Vs LTV Sizing Delta Calculator

LTC and LTV size differently. This calculator compares.

Total project cost

Stabilized value

Max LTC %

Max LTV %

Sizing delta

$2,300,000

LTC-sized loan

$7,500,000

LTV-sized loan

$9,800,000

How the math works

LTC loan = cost × LTC %. LTV loan = value × LTV %. Delta = absolute difference.

$10M cost, $14M value, 75% LTC, 70% LTV: $7.5M vs $9.8M. Delta $2.3M. Value-add sponsors target this delta as refi equity extraction opportunity post-stabilization.

How to Use

Enter total project cost.
Enter stabilized value.
Enter max LTC %.
Enter max LTV %.
Read loan size delta.

Frequently Asked Questions

Which applies?

Development: LTC dominates (no value yet). Value-add bridge: both LTC and LTV — lender takes lower. Stabilized perm: LTV applies. LTC typically 65-75% on development; LTV 65-75% stabilized. Value-add LTC often 70-80% during construction.

Value-add arbitrage?

Cost $10M, value post-stabilization $14M. LTC 75% = $7.5M. LTV 70% = $9.8M. Difference: $2.3M. Bridge lender sizes to lower; perm lender to LTV. Wait for stabilization, refi up → extract equity.

Cash-equity split?

LTC-sized loan: sponsor contributes 25-35% cash equity. LTV-sized: once stabilized, can extract some back via refi. Key value-add play: deploy limited cash upfront, extract via refi post-stabilization. Capital efficiency multiplies.