Loan To Value Ratio Calculator

Work out loan to value ratio instantly with clear inputs, formula shown and shareable results.

About Loan To Value Ratio Calculator

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.

Formulas

Loan to value

LTV = loan amount / property value x 100

Limits

Maximum loan = value x maximum LTV; equity required = value - loan

Worked example

With the default values below, Loan To Value Ratio Calculator returns Loan to value ratio of 70.00%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Loan amountminimum 0: 7,000,000
Property valueminimum 0.01: 10,000,000
Maximum permitted LTVaccepts 1–100 %: 80 %

Results

Loan to value ratio: 70.00% %
Maximum loan permitted: $8,000,000.00
Equity required: $3,000,000.00
Additional borrowing available: $1,000,000.00

Step by step

1Values used
2Loan to value
3Limits
4Loan to value ratio= 70.00 %
5Maximum loan permitted= 8,000,000.00
6Equity required= 3,000,000.00
7Additional borrowing available= 1,000,000.00

Assumptions and limits

The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Loan To Value Ratio figure worked out?

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.

Which value is used, purchase price or appraisal?

The lower of the two. Paying above appraised value does not increase the loan available; the excess must come from equity.

What values do I need to enter?

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.