Loan-to-Value Calculator
Work out your loan-to-value ratio from the loan amount and the property value.
How to use the Loan-to-Value Calculator
- Enter the loan amount you need or have.
- Enter the value or price of the property.
- See your loan-to-value ratio and equity.
- Check which LTV band you fall into.
LTV = (Loan amount ÷ Property value) × 100
About the Loan-to-Value Calculator
Loan-to-value, or LTV, is the loan expressed as a percentage of the property's value, and it is one of the first things a mortgage lender looks at. This calculator works it out and also shows your equity and your deposit percentage — the flip side of the same figure. A lower LTV means you own more of the property outright, which lenders reward with better rates because there is more cushion if prices fall.
The 80% line is the one to know. At or below 80% LTV you usually access the best rates and avoid private mortgage insurance; above it, lenders see more risk and often add PMI or charge more, and above 90% the options narrow further. Because LTV moves with both the loan and the value, paying down the mortgage or a rise in the property's value both improve it over time — which is what makes a remortgage to a better rate possible later.
This is the core ratio; a lender may also use its own valuation rather than your figure, and combine multiple loans against the same property. To see how much equity you could borrow against, use the home equity calculator, and to size a deposit the down payment calculator.
Frequently asked questions
What is a good loan-to-value ratio?
80% or below is the sweet spot — it usually unlocks the best mortgage rates and avoids private mortgage insurance. The lower your LTV, the more equity you hold and the better your terms tend to be.
How is LTV linked to my deposit?
They are two sides of the same coin. A 20% deposit means an 80% LTV; a 10% deposit means 90% LTV. The calculator shows both so you can see the relationship.
Does a higher property value lower my LTV?
Yes. For the same loan, a higher value reduces the ratio, since the loan is a smaller share of the property. That is why rising prices can move you into a better LTV band over time.