What LTV measures
Loan-to-value expresses the loan as a share of the collateral value. A $7,000,000 loan on a property valued at $10,000,000 is 70% LTV. The remaining 30% is the equity cushion that absorbs a drop in value before the lender is exposed.
Bridge lenders often quote two versions: LTV against the as-is value today and against the as-stabilized value the business plan is expected to create. The gap between them is the value the sponsor still has to build.
How to read the result
A lower LTV means more equity beneath the loan and, all else equal, a stronger position for the lender. Senior lenders set maximum LTVs by property type and risk; subordinate capital such as mezzanine debt or preferred equity is described by the combined LTV of every position above the common equity.
LTV says nothing about cash flow. A property with a low LTV can still fail to cover its debt service, which is why lenders pair LTV with debt service coverage and debt yield.
Limitations
The ratio is only as good as the value you enter. Appraisals lag the market, and an as-stabilized value depends on assumptions about rents, occupancy, and cap rates that may not hold. Use the calculator to frame a conversation, not to settle one.
The result is an arithmetic output from the numbers you enter. It is not a quote, a term, or an underwriting decision, and H Equities does not see or store what you type.