Work out loan to value ratio instantly with clear inputs, formula shown and shareable results.
Loan to value is the loan divided by property value and measures the lender's cushion against a fall in price. Above eighty percent most lenders require mortgage insurance or price the loan higher, because a modest correction would leave the debt exceeding the security.
Loan to value
LTV = loan amount / property value x 100
Limits
Maximum loan = value x maximum LTV; equity required = value - loan
LTV = loan amount / property value x 100. Loan to value is the loan divided by property value and measures the lender's cushion against a fall in price.
The lower of the two. Paying above appraised value does not increase the loan available; the excess must come from equity.
This calculator takes 3 inputs: Loan amount, Property value, Maximum permitted LTV. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.