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Loan-to-value (LTV) calculator.

LTV is loan divided by value — one of the two levers (with DSCR) that sets your maximum commercial loan. Check where a deal lands, and see the biggest loan common lender thresholds allow.

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Loan-to-value ratio
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LTV = loan ÷ value. Most commercial lenders cap LTV around 65–75% depending on asset type and tenant strength. LTV and DSCR both constrain the loan — the lender lends the lower of the two, so a strong LTV won’t help if DSCR is thin.

How LTV caps your loan

Loan-to-value is one of the two levers, alongside DSCR, that caps a commercial loan. It is the loan amount divided by the property’s value or price. Most lenders top out around 65–75% for stabilized assets, meaning you bring 25–35% equity. Because DSCR and LTV both constrain the loan, the lender advances the lower of the two.

Example. On a $2,720,000 purchase, a 70% LTV allows a maximum loan of $1,904,000, leaving about $816,000 of equity before closing costs. If the property’s income only supported a $1,700,000 loan at the required DSCR, that lower figure would govern — and your down payment would rise accordingly.

Frequently asked questions

What is LTV?
Loan-to-value is the loan amount divided by the property’s value or purchase price, shown as a percentage. A $1,900,000 loan on a $2,720,000 property is about 70% LTV. Lower LTV means more equity and less lender risk.
What is a typical LTV for commercial property?
Most commercial mortgages top out around 65–75% LTV for stabilized assets, sometimes lower for special-purpose or riskier property. Agencies and SBA programs can go higher for multifamily and owner-occupied deals.
What’s the difference between LTV and LTC?
LTV compares the loan to the property’s value; LTC (loan-to-cost) compares it to total project cost including purchase and renovation. Value-add and construction lenders often size on LTC, then re-check against LTV at stabilization.

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Estimates are for planning only and use simplified assumptions — not tax, legal, or investment advice. Verify with your lender, CPA, and a full broker analysis before acting.