Loan-To-Value(LTV) Percentage Calculation

(A financial guide before going for a big purhase)

Loan to Value Ratio Calculator

This Risk assessment measurement calculator is used to figure out the ratio of a loan to the value of an asset purchased.

Estimated Property Value

Number of Mortgage Amount Owed

First Mortgage Amount Owed

Loan to Value ratio is the amount that you can borrow to finance your home.

The formula of calculating loan to ratio is as follow:

LTV ratio = MA / APV

Where

MA is Mortgage Amount Owed

APV is Appraised (or) Estimated Property Value

Example:

John borrows $130,000 to purchase a house worth $150,000

LTV ratio = $130,000 / $150,000

LTV ratio is 87%

The remaining 13% represent the lender's haircut, adding up to 100% and being covered from the borrower's equity.