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How to use
- Enter Loan balance.
- Enter Property value.
- Calculate, then verify input definitions before comparing properties or periods.
How it is calculated
LTV = loan balance ÷ property value × 100
Example
Loan balance 700,000 on a 1,000,000 property gives 70% LTV and arithmetic equity of 300,000.
Important notes
Property value may mean purchase price or current appraisal depending on the financing context. Use the lender's required definition.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| LTV | 700000 ÷ 1000000 × 100 | 70 % |
| Equity | 1000000 − 700000 | 300,000 |
Frequently asked questions
Can LTV exceed 100%?
Yes mathematically if the loan exceeds property value, implying negative equity on that valuation.
Should inputs cover the same period?
Yes. When comparing income, expense, balance or price figures, keep the period and definitions consistent.
Is the result a final property valuation?
No. The calculator gives a numerical relationship only; real decisions also depend on location, market conditions, taxes, financing and risk.