Loan-To-Cost Ratio (LTCR)

Investor Term: 

LTC

Definition: 

Loan-to-cost ratio (LTCR) is a financial ratio that measures the percentage of the total cost of a project that is financed by debt. It is calculated by dividing the total loan amount by the total cost of the project. 



Formula: 

LTC = Total Loan Amount / Total Cost of Project

Example: 

For example, if a project costs $100,000 and the loan amount is $50,000, then the LTCR would be 50%.