Portfolio LTV Calculator

Portfolio LTV measures aggregate leverage. This calculator computes the ratio and shows remaining borrowing capacity.

Total loan balance

Total property value

Target max LTV %

Portfolio LTV

64.71%

Remaining capacity

$250,000

Equity position

$30,000,000

How the math works

LTV = total loans ÷ total value. Capacity = target LTV × value − current loans.

Portfolio LTV is the leverage number institutional investors underwrite. Keep it 5-8 points below covenant triggers to maintain operational flexibility.

How to Use

Enter total loan balance.
Enter total property value.
Enter target max LTV %.
Read portfolio LTV.

Frequently Asked Questions

Appropriate LTV?

Stabilized commercial portfolio 55-65% LTV. Value-add lifts to 70-75% during holds, refinanced down as NOI stabilizes. Over 75% = leverage risk in downturns.

Value source?

Appraised value at most recent refinance. Market value from broker estimates (less reliable). Income approach (NOI ÷ cap rate) for properties without recent appraisals.

Incremental borrowing?

Target LTV × value − current loan balance = additional capacity. Use for growth acquisitions or distributions. Stress-test at −10% value before drawing to capacity.

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.