Loan to Cost (LTC) Ratio Calculator
Loan-to-Cost (LTC) is the ratio of the loan amount to the total project cost and is commonly used by lenders and developers to assess financing risk during acquisition, construction, or renovation projects.
This calculator supports two workflow modes: enter a single verified total project cost, or provide an itemized cost breakdown that the tool will sum to derive the total. Use the method that best matches your underwriting documents.
Governance
Record 0ee56941f109 • Reviewed by Fidamen Standards Committee
Calculate LTC using a single total project cost value.
Inputs
Advanced inputs
Itemized cost breakdown
Total project cost input
Results
Loan-to-Cost (LTC) (%)
50.00%
Total project cost (entered)
$2,000,000.00
| Output | Value | Unit |
|---|---|---|
| Loan-to-Cost (LTC) (%) | 50.00% | % |
| Total project cost (entered) | $2,000,000.00 | USD |
Visualization
Methodology
LTC is computed as loan_amount divided by total_project_cost. Total project cost may be entered directly or derived by summing cost line items.
When using itemized inputs, the calculator sums purchase, construction, renovation, soft costs, contingency, and other costs to form the project total before computing LTC.
Values must be provided in the same currency and reflect lender-accepted bases (hard and soft costs as defined in your loan documents). Results are displayed as a percentage and rounded for presentation.
Worked examples
Example 1: Loan amount $1,000,000; total project cost $2,500,000 → LTC = 1,000,000 / 2,500,000 = 40%.
Example 2: Loan amount $4,000,000; itemized costs sum to $5,000,000 → LTC = 4,000,000 / 5,000,000 = 80%.
F.A.Q.
What does LTC tell a lender?
LTC indicates the portion of project cost financed by debt. Higher LTC means greater lender exposure and may require additional equity, guarantees, or higher interest rates.
How is LTC different from Loan-to-Value (LTV)?
LTC compares loan to project cost, while LTV compares loan to the appraised value of the collateral. Both metrics are used together in underwriting but measure different risk vectors.
What if total project cost is zero or missing?
Division by zero is invalid. The calculator will not produce an LTC result if total project cost is zero or omitted. Ensure the total project cost is entered or itemized inputs sum to a positive number.
Are contingency and soft costs included?
Yes. When using the itemized mode, include contingency and soft costs if they are part of the lender-approved project budget. Exclude costs not accepted by your lender.
How precise are results?
Displayed results are rounded for clarity. Precision depends on input accuracy. For legal or regulatory filings, preserve full precision from source calculations and verify against lender documentation.
Sources & citations
- NIST - Engineering Statistics Handbook — https://www.nist.gov
- International Organization for Standardization (ISO) — https://www.iso.org
- IEEE Standards Association — https://standards.ieee.org
- Occupational Safety and Health Administration (OSHA) — https://www.osha.gov
- HUD — FHA Single Family Housing Policy Handbook 4000.1 — https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1
- HUD — Property Valuation and Appraisals (HUD 4155.2) — https://www.hud.gov/sites/documents/4155-2_4.pdf
- Fannie Mae — Selling Guide — https://selling-guide.fanniemae.com/
Further resources
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
Record ID: 0ee56941f109What changed (latest)
v1.0.0 • 2025-11-24 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
What changed (latest)
v1.0.0 • 2025-11-24 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Engine
v1.0.0
Data
Baseline (no external datasets)
Content
v1.0.0
UI
v1.0.0
Governance
Last updated: Nov 24, 2025
Reviewed by: Fidamen Standards Committee (Review board)
Credentials: Internal QA
Risk level: low
Reviewer profile (entity)
Fidamen Standards Committee
Review board
Internal QA
Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person
Semantic versioning
- MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
- MINOR: New features or fields that do not change existing outputs for the same inputs.
- PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.
Review protocol
- Verify formulas and unit definitions against primary standards or datasets.
- Run golden-case regression suite and edge-case suite.
- Record reviewer sign-off with credentials and scope.
- Document assumptions, limitations, and jurisdiction applicability.
Assumptions & limitations
- Uses exact unit definitions from the Fidamen conversion library.
- Internal calculations use double precision; display rounding follows the unit's configured decimal places.
- Not a substitute for calibrated instruments in regulated contexts.
- Jurisdiction-specific rules may require official guidance.
Change log
v1.0.0 • 2025-11-24 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: 9b587a5d1377