Loan-to-Value Calculator
Calculate the loan-to-value (LTV) ratio from the loan amount and property value, with the deposit percentage and equity.
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Calculate the loan-to-value ratio, deposit percentage and equity for a mortgage.
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Calculate the loan-to-value ratio
The loan-to-value ratio, or LTV, compares the size of a loan to the value of the asset securing it, most often a mortgage against a property. It is calculated by dividing the loan amount by the property value and expressing the result as a percentage. Borrowing two hundred forty thousand against a three hundred thousand property gives an LTV of eighty percent, meaning the remaining twenty percent is your deposit or equity. This calculator shows the LTV, the deposit amount and percentage, and which lending band the ratio falls into.
A lower LTV means you own more of the property outright and borrow proportionally less.
Why lenders watch LTV
LTV is one of the most important figures in mortgage lending because it measures the lender's risk. A lower LTV gives the lender a bigger cushion if the property must be sold, so borrowers with larger deposits are offered lower interest rates. Crossing below key thresholds such as eighty percent often unlocks noticeably better deals, and in some markets a high LTV triggers mortgage insurance.
As you repay the loan and as the property value changes, your LTV shifts, which is why remortgaging at a lower LTV can reduce your rate. All calculation happens locally in your browser.
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Frequently Asked Questions
What is the loan-to-value ratio?
It is the loan amount divided by the property value, as a percentage. An eighty percent LTV means the loan covers eighty percent of the value.
Why does LTV affect my interest rate?
A lower LTV is less risky for the lender, so it is usually rewarded with lower interest rates. Larger deposits generally mean cheaper borrowing.
What LTV do I need for the best rates?
The lowest rates typically require an LTV of sixty percent or below, though meaningful improvements often appear at the eighty percent threshold.
How does my deposit relate to LTV?
The deposit is the part of the value not covered by the loan. A twenty percent deposit produces an eighty percent LTV.
Does LTV change over time?
Yes. Repaying the loan lowers it and changes in the property value move it up or down, which can let you remortgage at a better rate.
Privacy & Security
Everything runs in your browser; nothing is uploaded.
How to Use
Enter the loan amount and property value, or a deposit to find LTV.
Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.
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