OneTaskBy Tim King · Updated
Loan-to-Value Calculator
How to Calculate Your LVR and How Far Value Must Rise
OneTask is free, with no sign-up, and built by one person.
If this tool saved you time, a coffee helps keep new ones coming.
How the Loan-to-Value Calculator works
This loan-to-value calculator works out the LVR, also called the LTV ratio, of a mortgage: the loan as a percentage of the property's value. It also shows your equity and, when you are above a target such as 80%, how much you would need to repay or how far the value would need to rise to get there.
Loan-to-value calculator formula
The loan-to-value ratio is the loan divided by the property value:
LVR = loan ÷ value × 100 Equity = value − loan
To reach a target LVR, either the loan comes down to value × target, or the value goes up to loan ÷ target. Lenders use the LVR to set rates and decide whether mortgage insurance is needed, with 80% the most common line.
Worked example: above 80%
A 600,000 loan on a 700,000 property has an LVR of 600,000 ÷ 700,000 = 85.71%, and equity of 100,000. To reach 80%, the loan would need to fall to 560,000, which means repaying 40,000, or the property would need to be valued at 750,000 or more.
Worked example: below the target
A 630,000 loan on a 900,000 property has an LVR of 70.00% and equity of 270,000, or 30% of the value. There is 90,000 of headroom before the loan reaches 80%.
Loan-to-value ratio reference table
The loan at 80%, 90% and 95% LVR for property values from 400,000 to 1,350,000.
| Property value | Loan at 80% | Loan at 90% | Loan at 95% |
|---|---|---|---|
| 400,000 | 320,000 | 360,000 | 380,000 |
| 450,000 | 360,000 | 405,000 | 427,500 |
| 500,000 | 400,000 | 450,000 | 475,000 |
| 550,000 | 440,000 | 495,000 | 522,500 |
| 600,000 | 480,000 | 540,000 | 570,000 |
| 650,000 | 520,000 | 585,000 | 617,500 |
| 700,000 | 560,000 | 630,000 | 665,000 |
| 750,000 | 600,000 | 675,000 | 712,500 |
| 800,000 | 640,000 | 720,000 | 760,000 |
| 850,000 | 680,000 | 765,000 | 807,500 |
| 900,000 | 720,000 | 810,000 | 855,000 |
| 950,000 | 760,000 | 855,000 | 902,500 |
| 1,000,000 | 800,000 | 900,000 | 950,000 |
| 1,050,000 | 840,000 | 945,000 | 997,500 |
| 1,100,000 | 880,000 | 990,000 | 1,045,000 |
| 1,150,000 | 920,000 | 1,035,000 | 1,092,500 |
| 1,200,000 | 960,000 | 1,080,000 | 1,140,000 |
| 1,250,000 | 1,000,000 | 1,125,000 | 1,187,500 |
| 1,300,000 | 1,040,000 | 1,170,000 | 1,235,000 |
| 1,350,000 | 1,080,000 | 1,215,000 | 1,282,500 |
Quick answers
- A 400,000 loan on 500,000 is an 80% LVR.
- A 90% LVR on 600,000 is a 540,000 loan.
- LVR and equity share always add up to 100%.
- A 20% deposit gives an 80% LVR at purchase.
- A higher valuation lowers the LVR without any repayment.
- Divide the loan by the value to see how many percent you owe: 600,000 on 750,000 is 80%.
Sources: Moneysmart home loans.
Checked against: 400,000 loan on a 500,000 property = 80% LVR
FAQ
What is a good loan-to-value ratio?
80% or below is the usual threshold for the best rates and for avoiding mortgage insurance. Some lenders offer better pricing again at 70% or 60%.
Is LVR the same as LTV?
Yes. LVR (loan-to-value ratio) is the term used in Australia and New Zealand, while LTV is used in the UK and US. Both are the loan divided by the value.
Which value does a lender use?
Usually the lower of the purchase price and the lender's own valuation. When refinancing, it is the new valuation. A low valuation raises your loan-to-value ratio even if the price you agreed stays the same.
See also: all Property tools, Pay, Bills, Debt, Investing, Saving.
Related tools
Home Equity Calculator
Your home equity and how much of it you can use.
House Deposit Calculator
The deposit, cash needed and time to save it.
Mortgage Repayment Calculator
Home loan repayments with amortisation schedule, offset and extra repayments.
Home Affordability Calculator
The price you can afford from income, deposit and rate.
Negative Equity Calculator
See your mortgage shortfall and when equity turns positive.