Calculating your loan to cost ratio is straightforward once you know the Loan to Cost (LTC) Ratio formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Loan to Cost (LTC) Ratio Calculator.
What is Loan to Cost (LTC) Ratio?
The Loan to Cost (LTC) Ratio calculation tells you your loan to cost ratio from a few simple inputs. The figure you are solving for here is the loan to cost ratio, expressed in percent.
The Loan to Cost (LTC) Ratio formula
The core formula is:
Loan to cost ratio = Loan amount ÷ Total project cost × 100Here is what each input means:
- Loan amount — a money amount. Example: ₹8,00,000.
- Total project cost — a money amount. Example: ₹10,00,000.
How to calculate it step by step
- Write down the loan amount (for example, ₹8,00,000).
- Write down the total project cost (for example, ₹10,00,000).
- Apply the formula above to get your loan to cost ratio.
- Double-check the result with the Loan to Cost (LTC) Ratio Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Loan amount | ₹8,00,000 |
| Total project cost | ₹10,00,000 |
| Loan to cost ratio | 80.00% |
With loan amount of ₹8,00,000 and total project cost of ₹10,00,000, the loan to cost ratio works out to 80.00%.
Example 2
With loan amount of ₹16,00,000 and total project cost of ₹10,00,000, the loan to cost ratio works out to 160.00%.
| Result | Value |
|---|---|
| Loan to cost ratio | 160.00% |
Example 3
With loan amount of ₹4,00,000 and total project cost of ₹10,00,000, the loan to cost ratio works out to 40.00%.
| Result | Value |
|---|---|
| Loan to cost ratio | 40.00% |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
- Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).
Prefer not to do the maths by hand? — the Loan to Cost (LTC) Ratio Calculator does it instantly, for free, with the formula and a worked example built in.
Related calculators
Continue exploring real estate calculators with these tools: Down Payment Percentage Calculator, Property Management Fee Calculator, Stamp Duty Calculator, Real Estate Commission Calculator, Price Per Acre Calculator.