Loan-to-Value Calculator
Your loan-to-value ratio, the combined figure with a second loan, the equity you own, and how much room is left under a limit.
Result…
How it's calculated
LTV = mortgage balance ÷ property value × 100 Combined LTV = (mortgage + second loans) ÷ value × 100 Equity = value − all loans secured on it Room under a limit = value × limit − all loans
Loan-to-value compares what you owe with what the property is worth. Lenders use it to price loans and decide how much more you can borrow: a lower figure usually means better terms. Combined loan-to-value adds any second mortgage or home equity borrowing, and equity is the part of the value you own outright.
Your numbers, step by step
About the Loan-to-Value calculator
This loan-to-value calculator compares what you owe on a property with what it is worth. Enter the property value and your mortgage balance, plus any second loan secured on the home, such as a second mortgage or home equity borrowing. It shows your loan-to-value, the combined loan-to-value across both loans, your equity in money and as a share of the value, and how far you are from a limit you choose. That limit could be a lender's maximum for a new loan, a remortgage or extra borrowing. Lenders use loan-to-value to price loans and decide how much more you can borrow, so knowing the figure helps before you apply. Each step shows the division with your own numbers.
How to use it
- Enter the “Property value”, from the price or a recent valuation.
- Enter your “Mortgage balance”.
- Add any “Second loan balance” secured on the home; leave it at 0 if there is none.
- Set the “Loan-to-value limit” you want to check against.
- Read the loan-to-value, the combined figure, your equity and the room left under the limit.
Worked example
A home worth 250,000 with a 180,000 mortgage has a loan-to-value of 180,000 ÷ 250,000 = 72%. Add a 40,000 second loan and the combined loan-to-value is 88%, leaving 30,000 of equity, 12% of the value. Against an 85% limit there is no room to borrow more; you would need to pay down 7,500 to get under it.
Updated
Questions people ask
How do I calculate loan-to-value?
Divide the loan balance by the property value and multiply by 100. A 180,000 loan on a 250,000 home is 72%.
What is the difference between LTV and combined LTV?
Loan-to-value counts the first mortgage only. Combined loan-to-value adds every other loan secured on the property, so it is the figure that shows your total borrowing against the home.
What is a good loan-to-value ratio?
Lower is usually better: lenders tend to offer better terms as loan-to-value falls, and some require mortgage insurance above a set level, which you can price with the PMI calculator.The thresholds differ by lender and country, so check the limits on the products you are looking at.
Can my loan-to-value go above 100%?
Yes, if the property is worth less than you owe. Equity is then negative, which can make it hard to remortgage or sell without paying in extra money.
Will a lender use the same figure?
Not always. Lenders may use their own valuation, and some count the full limit of a credit line rather than the amount drawn. Ask the lender or a mortgage adviser which value and balances they use.