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Loan to cost calculator

Calculate loan to cost — the principal lever a senior construction lender uses to size a development loan.

Run it in FeasoSee worked example

Formula

LTC = Senior debt facility / TDC

Senior debt is the construction loan limit, not the peak drawn balance.

Inputs

Senior debt facility
The construction loan limit approved by the senior lender.
Total development cost
All-in cost — land, construction, fees, contributions, finance, contingency.

Output

LTC (%)
Most Australian construction lenders cap LTC at 70–75% on build-to-sell apartments.

Worked example

Senior facility $17M on a $24.1M TDC.

LTC = $17,000,000 / $24,113,000 = 70.5%. Sits at the typical lender ceiling.

Related tools

Property development feasibility calculator
End-to-end feasibility — revenue, cost, profit, IRR.
Development cash flow calculator
Monthly cashflow — peak debt, peak equity, distributions.

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