LTC Calculator
Measure loan commitment against eligible project cost.
Calculated directly from the assumptions shown.
Continue in the full model.
Move from this screening result to the complete Construction Financing Model.
Get the model · €49 incl. VATHow the LTC calculation works
Loan to cost = loan amount ÷ eligible project cost.
Example calculation
A €6.5m facility against €10m of eligible cost produces 65% LTC.
How professionals use the result
Use LTC to test lender leverage limits. Confirm which costs the lender treats as eligible.
Common mistakes
- Using total cost when the loan excludes certain costs
- Including interest twice
- Comparing commitment with drawn balance
- Confusing LTC with LTV
LTC Calculator FAQs
What does the LTC calculator measure?
Measure loan commitment against eligible project cost.
What formula does the LTC calculator use?
Loan to cost = loan amount ÷ eligible project cost.
Is the result suitable for a final investment decision?
Use it as a transparent screening calculation. Validate deal-specific tax, timing, financing and legal assumptions in a complete underwriting model before making a decision.
Do I need an account?
No. The calculator is free and runs in your browser. FormulaPlanet does not store your projects, inputs or results.
Is any input sent publicly?
No calculation is public by default. A shareable link is only created when you explicitly choose to copy one; that link contains the assumptions shown in its URL.
Why might my spreadsheet give a different answer?
Differences usually come from timing, compounding, sign conventions, fees or a different definition of the numerator or denominator. Match every period and definition before comparing.
What should I review alongside this result?
Use LTC to test lender leverage limits. Confirm which costs the lender treats as eligible.
Which mistakes are most common?
Using total cost when the loan excludes certain costs; Including interest twice; Comparing commitment with drawn balance; Confusing LTC with LTV.