Deal Metrics

What is LTV (Loan-to-Value)?

LTV shows how much of the property is financed with a loan.

Analyze your own deal

Answer

LTV shows how much of the property is financed with a loan.

Formula: LTV = Loan Amount ÷ Property Value

Example: Loan amount = $160,000 Property value = $200,000 LTV = 80%

Why this matters: Higher LTV means more leverage, which can improve returns but also increases risk.

Related questions

What is DSCR (Debt Service Coverage Ratio)?What is NOI (Net Operating Income)?What is cap rate?What is cash-on-cash return?

See how this plays out on a real deal

DealPrism helps you connect the concept to live property assumptions, scenario changes, and calculated outputs.

Analyze your own deal

DealPrism provides educational analysis based on available data and user assumptions. Results are estimates and may change if rent, taxes, insurance, financing, or other inputs are updated. This content is not financial, legal, tax, or investment advice.