Loan-to-Cost Calculator (USA)
Size a construction, rehab, or development loan. See your maximum loan as the lesser of an LTC cap (vs. total project cost) and an LTV cap (vs. after-repair value), plus equity required, interest reserve, and projected return on equity.
| Mo | Draw | Balance | Interest | Cumulative Int. |
|---|---|---|---|---|
| Calculate to see schedule | ||||
How to use the loan-to-cost calculator
Four quick steps turn a project budget into a full financing picture — maximum loan, binding constraint, equity required, interest reserve, projected profit, and a draw schedule you can download.
Enter project costs
Land, hard costs, soft costs, contingency, and closing costs.
Set the loan caps
Your LTC cap, the after-repair value, and the lender’s LTV cap.
Add terms & exit
Rate, term, points, draw model, and selling costs at the exit.
Read results & save a PDF
See sources and uses, returns, and the draw schedule, then download it.
How the numbers are calculated
The calculator builds a total project cost, tests it against both the LTC and LTV caps, takes the lesser of the two as your loan, then layers on financing and exit costs to reach profit and returns. Here is the exact chain of math behind every metric.
Worked example — $200,000 land, $120,000 hard costs, $480,000 ARV
Total project cost: 200,000 + 120,000 + 20,000 + 12,000 + 8,000 = 360,000
Max by LTC (80%): 0.80 × 360,000 = 288,000
Max by LTV (70% of ARV): 0.70 × 480,000 = 336,000
Loan = lesser of the two: 288,000 — equity 360,000 − 288,000 = 72,000
≈ $288,000 loan at 80.0% LTC and 60.0% LTV — cost is the binding constraint, because 80% of cost lands below 70% of value.
Loan-to-cost & loan sizing charts
Handy lookups for the questions people ask most — loan amount by cap and budget, when value beats cost as the binding constraint, typical caps by project type, and what an interest reserve runs. Ranges are general guidance; lenders and markets vary.
| Total project cost | 65% LTC | 70% LTC | 75% LTC | 80% LTC |
|---|---|---|---|---|
| $300,000 | $195,000 | $210,000 | $225,000 | $240,000 |
| $360,000 | $234,000 | $252,000 | $270,000 | $288,000 |
| $500,000 | $325,000 | $350,000 | $375,000 | $400,000 |
| $750,000 | $487,500 | $525,000 | $562,500 | $600,000 |
Loan by LTC = cap % × total project cost. Whatever the loan does not cover is equity: at 70% LTC on a $360,000 budget, the loan is $252,000 and you bring $108,000.
| After-repair value | Max by LTC (80%) | Max by LTV (70%) | Binding cap | Loan |
|---|---|---|---|---|
| $380,000 | $288,000 | $266,000 | LTV | $266,000 |
| $410,000 | $288,000 | $287,000 | LTV | $287,000 |
| $440,000 | $288,000 | $308,000 | LTC | $288,000 |
| $500,000 | $288,000 | $350,000 | LTC | $288,000 |
Based on a $360,000 budget. The two caps tie at an ARV of about $411,000; below that, value limits the loan and the shortfall becomes extra equity. Above it, raising the ARV no longer buys more proceeds.
| Project type | Common LTC cap | Common LTV cap | Note |
|---|---|---|---|
| Fix & flip / rehab | 80 – 90% | 65 – 75% of ARV | Short terms, higher rates |
| Ground-up construction | 65 – 80% | 60 – 70% | Draw-funded, reserve typical |
| Bridge / value-add | 70 – 80% | 65 – 75% | Sized on stabilized value |
| Commercial construction | 60 – 75% | 55 – 70% | Often adds a debt-yield test |
Illustrative ranges, not rules. Track record, market, and project complexity move caps as much as loan type does — an experienced sponsor often clears the top of a range a first-timer will not.
| Loan term | Even draw | Full draw day 1 | Difference |
|---|---|---|---|
| 6 months | $7,560 | $15,120 | $7,560 |
| 12 months | $15,120 | $30,240 | $15,120 |
| 18 months | $22,680 | $45,360 | $22,680 |
| 24 months | $30,240 | $60,480 | $30,240 |
On a $288,000 loan at 10.5%. An even draw funds the loan gradually, so interest accrues on roughly half the balance on average — about half the cost of taking the full amount at closing.
total cost
finished value
number wins
Loan sizing is two tests and one comparison: run the LTC cap against what the project costs, run the LTV cap against what it will be worth, and the smaller of the two is your loan. Everything else — equity, reserve, returns — follows from that number.
- Loan-to-cost — caps the loan at a share of the full budget, contingency included.
- Loan-to-value — caps the same loan at a share of the after-repair value.
- The binding cap — whichever comes in lower sets the loan and the equity you owe.
Everything the calculator works out
A handful of inputs give you the full financing picture — the budget, the loan sizing, the cash you need, and the return the deal produces.
Key figures behind the analysis
Built for any financed project
From a first flip to a ground-up build, the same calculator turns a budget and two lender caps into a clear, comparable financing picture.
Buying to renovate and resell, and needs to know the cash to close and the profit left after financing and commissions.
- Size the loan against both caps
- Check profit after the 6% exit
- Compare deals on return on equity
Funding land and vertical costs on draws, with a contingency line and an interest reserve to carry the build.
- Model the even-draw reserve
- Keep contingency in the basis
- Read the month-by-month schedule
Taking the full loan at closing to reposition a property, then refinancing into permanent debt at stabilized value.
- Switch to full draw day one
- Test the loan against LTV
- Set exit costs to zero for a refi
7 tips for sizing a loan-to-cost deal
A few habits keep your budget honest and your equity requirement free of surprises.
Loan-to-cost calculator FAQ
The definition, sizing, and return questions people ask most about loan-to-cost, LTV caps, equity, and interest reserves.
Loan-to-cost is the loan amount divided by the total cost of the project, shown as a percentage. Total cost includes land or acquisition, hard construction costs, soft costs, contingency, and closing costs.
A $288,000 loan on a $360,000 project is 80% LTC. Lenders use LTC to cap how much of the budget they will fund, which is what determines how much equity the borrower has to bring to the table.
LTC measures the loan against what the project costs to build. LTV measures the same loan against what it will be worth when finished, usually the after-repair or stabilized value. Cost and value are different numbers, so the two ratios rarely match.
Most construction and bridge lenders apply both caps and lend the lesser of the two results, so the tighter cap sets your loan. A $288,000 loan can be 80% LTC and 60% LTV at the same time.
It depends on the loan type and the borrower’s track record. Fix-and-flip and rehab lending often runs 80 to 90 percent of cost, ground-up construction more often sits at 65 to 80 percent, and commercial construction is frequently tighter still.
Experienced sponsors with completed projects usually get higher caps than first-time borrowers. Treat any published range as a starting point and confirm the cap with your lender before you budget around it.
Equity required is total project cost minus the loan amount. On a $360,000 project funded at 80% LTC, the loan is $288,000 and the equity is $72,000.
That is only the equity in the cost basis, though. Origination points and any interest reserve you fund yourself add to the cash you actually need, so plan around total cash required rather than the equity line alone.
An interest reserve is money set aside, usually inside the loan, to pay interest during construction while the property produces no income. The amount depends on how the loan funds.
On an even draw the balance ramps up over the term, so interest accrues on roughly half the loan on average — about $15,120 on a $288,000 loan at 10.5% over 12 months. Take the full amount at closing and interest accrues on the whole balance from day one, roughly double.
Yes. Most lenders size LTC against the full budget: land or acquisition, hard costs, soft costs such as architecture, engineering and permits, a contingency line, and closing costs.
Contingency is normally set as a percentage of hard costs, commonly 5–15%. Leaving contingency or soft costs out understates the budget, overstates your LTC, and hides equity you will end up funding anyway.
Return on cost divides projected profit by total project cost, so it measures the deal unleveraged. Return on equity divides the same profit by the cash you actually put in — equity, points, and any interest you fund.
Leverage widens the gap. Borrowing more shrinks profit slightly through financing costs, but it shrinks the cash invested far more, so return on equity rises even as return on cost drifts down.
Because the LTV cap produced a smaller number than the LTC cap. If the finished value is modest relative to the budget, a 70% of ARV cap will bind before an 80% loan-to-cost cap does.
When that happens the extra proceeds are simply unavailable and the gap becomes equity. A value-constrained deal is usually a signal that the budget is heavy for the finished product — worth re-checking before you commit.
General Estimating Notice: This calculator estimates a maximum loan amount, equity required, origination and interest reserve costs, and projected returns from the project costs, caps, and terms you enter. Loan sizing methods, LTC and LTV caps, reserve requirements, fees, and draw schedules vary by lender and by underwriting, and results depend entirely on the accuracy of your inputs and assumptions. Figures are illustrations, not a loan commitment, quote, appraisal, or financial, tax, or investment advice. Verify every figure with a licensed lender before proceeding. For planning purposes only.