Loan-to-value ratio calculator
Calculate LVR and equity from a loan amount and property value.
What the result means
LVR is the loan divided by the lender’s valuation. Equity is the rest. A fall in prices raises LVR even if you never borrow more.
How it is calculated
LVR = loan ÷ value × 100. Equity = value − loan
- Value: Lender valuation or purchase price if you do not have a valuation.
If the loan exceeds the value, equity is negative in this simple picture.
Assumptions
- Estimates only — not tax, legal, credit or financial advice. Check the official source or your contract before relying on a figure.
- One loan against one property.
Worked example
$680,000 loan on $850,000
Purchase with 20% deposit.
- LVR
- 680,000 / 850,000 = 80%
- Equity
- $170,000
That is the usual 80% LVR example used in the mortgage calculator defaults.
Valuation is not always the contract price
Lenders may value below what you agreed to pay. Use their figure if you have it. LMI, rate pricing and some products step at 80%, 90% and similar bands.
If you agreed $800,000 and the bank says $760,000, an $80,000 deposit is 10% of the price but the LVR is calculated on $760,000. The shortfall has to come from you. Lenders mortgage insurance protects the bank, not you.
Questions
Does this include a second mortgage?
Add both loans together before you enter the loan amount if they are secured on the same property.
Why does 80% LVR keep coming up?
It is the usual line below which most lenders skip lenders mortgage insurance. Above 80% they typically require LMI, which is priced on the loan, the LVR band and the applicant.
Read the background
These guides explain the rules behind this calculation in full, without any inputs to fill in.
- House deposits, LVR and why 20 percent still mattersHow a deposit becomes a loan-to-value ratio, when lenders charge mortgage insurance, and why a 5% deposit is not one-quarter of a 20% one in cost.9 min read
- How mortgage interest is charged and repaidWhy the first years of a loan are mostly interest, what an extra $100 a month really saves, and how an offset account compares to a redraw.9 min read
Related calculators
Sources
Moneysmart (ASIC)
Last reviewed 2026-08-19
Home · Last reviewed 19 August 2026
Estimates only. Not tax, legal or financial advice. Check official sources before relying on a figure.
Spotted a mistake? Contact us.
Printed from OzCalc (ozcalc.com). Last reviewed 19 August 2026. Estimates only — not tax, legal or financial advice.