Loan to Value Calculator

LTV is the single most-quoted ratio in mortgage lending. Lenders typically band borrowers by LTV: lower-LTV borrowers usually access cheaper rates, mid-range LTV (around 75-80%) is the most common borrower tier, and high-LTV loans (above 90%) often carry rate premiums and may require additional insurance. A 240,000 balance on a 300,000 property is 80% LTV — within the most common borrowing range.

Quick example

With mortgage balance of 240,000 and property value of 300,000, the result is 80.00%. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Mortgage Balance and Property Value. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

What's happening under the hood

Standard LTV definition: outstanding loan divided by current property value. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Why this matters

LTV sits at the heart of mortgage pricing and equity position. Knowing where the ratio sits today — and the band boundary you're closest to — informs decisions about overpayments, the timing of a remortgage / refinance, and how much room the equity cushion gives if property values move. The ratio also signals to a lender how much risk they're taking on a given loan.

What this doesn't capture

LTV is a snapshot calculated from two figures you've entered. It does not account for changes in property value between valuations, ongoing mortgage repayments that reduce the balance over time, or any second-lien debt secured against the same property (a Combined LTV calculation captures that). Update the inputs whenever your balance or property value changes to keep the figure current.

Where to go next

This calculation rarely sits alone in a planning exercise. If you're running these numbers, you'll probably also want the mortgage calculator, the home equity calculator, and the combined ltv calculator — each one answers a different question in the same territory. Treating them as a set rather than in isolation usually produces a more honest picture.