Financing

Loan-to-Cost (LTC)

Loan amount divided by total project cost (purchase + rehab + closing).

Reviewed 9 August 2026 by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Common in construction and BRRRR financing — based on what you put in, not market value.

Examples

$180k loan on $250k total cost = 72% LTC.
Construction loans typically 70-80% LTC.

Common mistakes

Confusing LTC with LTV in BRRRR refinance scenarios.

Loan-to-Cost (LTC)

Plain-English explanation

Examples

Common mistakes

Related questions