Loan to Value Calculator
Your mortgage as a percentage of property value.
Calculate your loan-to-value (LTV) ratio from mortgage balance and property value — plus the equity cushion you have above the loan.
What this tool does
Loan-to-value (LTV) is your mortgage balance divided by your property value — the percentage that represents how much you've borrowed against what the property is worth. This calculator takes your current mortgage balance and property value to show your LTV ratio as a percentage, plus your equity position (the difference between property value and mortgage owed). The mortgage balance is the primary driver of the result; as it decreases through repayment, your LTV falls. A typical scenario: comparing your LTV at different points in your mortgage term to see how your equity stake changes. The calculation uses current figures and doesn't account for property value fluctuations, estimated closing costs, or changes in mortgage terms over time. The result illustrates your current loan-to-value standing for reference purposes.
Quick answer: with the default values, the result is 80.00% (Loan-to-Value). Adjust the values below for your own figures.
Enter Values
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Formula Used
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
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%.
Which inputs matter most
You enter Mortgage Balance and Property Value.
What's happening under the hood
Standard LTV definition: outstanding loan divided by current property value.
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, related tools include the mortgage calculator, the home equity calculator, and the combined ltv calculator — each one answers a different question in the same territory.
A £240,000 mortgage on a £300,000 property results in a loan to value ratio of 80.00%.
Inputs
| Equity | $60,000.00 |
|---|---|
| Equity % | 20.00% |
| Tier | 75-80% |
| Property Value | $300,000.00 |
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
This calculator computes loan-to-value ratio by dividing the outstanding mortgage balance by the current property value. The result is expressed as a percentage, showing what portion of the property's value is financed by debt. The model treats both the mortgage balance and property value as static figures at a single point in time. It does not account for ongoing mortgage repayments, property appreciation or depreciation, fees, interest accrual, or changes in market conditions. The calculation assumes the property value entered reflects the current market valuation or most recent appraisal. LTV is commonly used by lenders to assess lending risk and borrower equity position.
References
Frequently Asked Questions
Why does LTV matter?
What are the lending tiers?
Does LTV change automatically?
What is combined LTV?
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