Methodology / Glossary / Loan to Cost

Loan to Cost

Total debt divided by total project costs. LTC measures how much of the project spend is funded by borrowing. It is the primary metric lenders use to determine the maximum loan amount.

Why it matters

LTC directly determines how much equity the developer must contribute. Higher LTC means less equity needed.

In Profivo

Used to size the debt facility and shown in Finance metrics.

Back to Methodology