Loan-to-value ratio calculator

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.

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.

Questions