Example 1 — Lower risk (≤80%)
- Loan: 240,000
- Value: 300,000
LTV 80%
Equity 60,000
A 20% down payment — usually lower risk for the lender.
LTV (Loan-to-Value)
See what share of the property value the loan covers — and how much equity you still have.
LTV = loan ÷ value. Lower LTV usually means more of your own capital and less leverage. Start from a known loan (not from a down-payment % — use Down payment for that). Payment + housing costs: Mortgage instalment. Bands ≤80 / 80–90 / >90 are a rough guide, not lender gates.
Result
Enter data and click Calculate.
How results are calculated
LTV = loan amount ÷ property value × 100%.
Equity = property value − loan amount. A negative result means the loan exceeds the value of the collateral.
How to use the calculator
- Enter the loan amount (or what you’re applying for) in the header currency.
- Enter the property value (appraisal or purchase price) in the same currency.
- Hit Calculate — you’ll see LTV, equity, and a short read of the band.
- With a high LTV, peek at borrowing capacity and DTI before you apply.
Usage examples
Example 2 — Elevated (80–90%)
- Loan: 306,000
- Value: 360,000
LTV 85%
Equity 54,000
Possible extra requirements (e.g. low-deposit insurance).
Example 3 — High LTV + scenario B
- Loan: 220,000
- Value: 200,000
- B: loan 180,000
LTV 110% → lower B
Negative Δ LTV
Negative equity in A; B shows how a smaller loan cuts LTV.
LTV vs down payment – two views of the same picture
- Use Loan-to-value when you know the loan amount and the property/collateral value – you then calculate what share of the value the lender finances.
- Use Down-payment % when you start from your own contribution (e.g. 20% of the price or a specific amount) and want to see the resulting loan and LTV.
- LTV shows the ratio of loan to value, but says nothing about your income or creditworthiness.
Both calculators describe the same situation from two sides: down payment from your capital side, LTV from the lender’s share in the financing.
FAQ
How is this different from Down payment (%)?
Here you already know the loan and value — you get LTV and equity. Down payment starts from a % (or cash) and derives the loan plus the implied LTV.
How should I read LTV?
The loan amount as a percentage of property value (or other collateral) — the lower it is, the less risk for the lender.
What is equity?
Property value minus the loan. Positive = your stake; negative = the loan exceeds the collateral’s value.
How should I read the 80% and 90% thresholds?
Indicative bands: ≤80% usually lower risk, 80–90% elevated (possible extras), >90% usually high. Not fixed lender rules.
How does a down payment affect LTV?
A larger down payment shrinks the loan relative to value, so LTV falls — and offer terms often improve.
Does LTV decide borrowing capacity?
Not on its own. LTV looks at collateral; borrowing capacity and DTI look at your income. Lenders usually weigh both.
What if LTV is above 100%?
The loan exceeds the property’s value (negative equity) — usually hard to finance without extra collateral.
Which related tools help?
Down payment (%) when you start from a down-payment percent; Mortgage instalment for P+I and housing costs; Borrowing capacity for an income-based loan cap (not LTV).
Can I change the result currency?
Yes — pick it in the header; loan, value, and equity formatting will refresh.