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# LTV Calculator

The loan to value ratio expresses the ratio of a loan to the value of an asset purchased. It can also be termed as LTV, Loan to Valuation Ratio, LVR or Loan to Value Ratio. It is the percentage of the value of the property that you are borrowing. This LTV calculator is used to calculate the LVR ratio (Loan to Valuation Ratio) with the property price and deposit. It is used to find the true value of your property and lets you know if you need a low deposit premium or LMI.

## Loan to Value Ratio Calculation | LVR Calculator

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The loan to value ratio expresses the ratio of a loan to the value of an asset purchased. It can also be termed as LTV, Loan to Valuation Ratio, LVR or Loan to Value Ratio. It is the percentage of the value of the property that you are borrowing. This LTV calculator is used to calculate the LVR ratio (Loan to Valuation Ratio) with the property price and deposit. It is used to find the true value of your property and lets you know if you need a low deposit premium or LMI.

#### Formula:

Loan to Value Ratio (LTV) = ((Property Price - Deposit) / Property Price) x 100

#### Example

A property costs 10000\$ and the deposit amount is 500\$. What is its LTV ratio

= ((10000 - 500) / 10000) x 100
= 95 %
Therefore, the ltv ratio is 95 %