Commercial real estate LTV calculator
Estimate commercial real estate loan-to-value from loan amount and property value, with the remaining property-value cushion shown clearly.
Commercial real estate loan-to-value
- Loan amount
- $6,500,000.00
- Property value
- $10,000,000.00
- Value cushion
- $3,500,000.00
This estimate does not determine lendable value or approval. Confirm the accepted appraisal, eligible loan balance, policy limits and transaction-specific underwriting treatment.
Calculation boundaries
Assumptions behind this estimate
Transparent assumptions make it easier to identify where a contractual or production calculation may differ.
- LTV equals loan amount divided by property value, multiplied by 100.
- The property value entered is the value accepted for the calculation date and purpose.
- The loan amount and property value use the same currency.
- The calculation excludes subordinate debt, future advances and lender-specific combined leverage tests unless entered in the loan amount.
Common questions
Calculator FAQ
What is LTV in commercial real estate?OpenClose
Loan-to-value compares the loan exposure with the property value used by the lender. It is one measure of leverage and collateral coverage.
How do you calculate commercial real estate LTV?OpenClose
Divide the eligible loan amount by the accepted property value and multiply by 100. The applicable balance and valuation basis must be confirmed.
Does this calculator include subordinate debt?OpenClose
Only if you include it in the loan amount. Combined or total leverage may require a separate calculation under the lender’s policy and deal documents.