Loan to Value Ratio Calculator

✖Mortgage Amount is a regularly scheduled payment which includes principal and interest paid by the borrower to the lender of the home loan.ⓘ Mortgage Amount [MA]			+10% -10%
✖Appraised Property Value is the estimated monetary worth of a property determined based on various factors such as market conditions, location, size, and condition of the property.ⓘ Appraised Property Value [APV]			+10% -10%

✖Loan to Value Ratio is a financial metric representing the proportion of a loan amount compared to the appraised value of the asset used as collateral, expressed as a percentage.ⓘ Loan to Value Ratio [LTV%]

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Formula

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Loan to Value Ratio

Formula

`"LTV%" = ("MA"/"APV")*100`

Example

`"74.28571"=("26000"/"35000")*100`

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Loan to Value Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100
LTV% = (MA/APV)*100
This formula uses 3 Variables

Variables Used

Loan to Value Ratio - Loan to Value Ratio is a financial metric representing the proportion of a loan amount compared to the appraised value of the asset used as collateral, expressed as a percentage.
Mortgage Amount - Mortgage Amount is a regularly scheduled payment which includes principal and interest paid by the borrower to the lender of the home loan.
Appraised Property Value - Appraised Property Value is the estimated monetary worth of a property determined based on various factors such as market conditions, location, size, and condition of the property.

STEP 1: Convert Input(s) to Base Unit

Mortgage Amount: 26000 --> No Conversion Required
Appraised Property Value: 35000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

LTV% = (MA/APV)*100 --> (26000/35000)*100

Evaluating ... ...

LTV% = 74.2857142857143

STEP 3: Convert Result to Output's Unit

74.2857142857143 --> No Conversion Required

FINAL ANSWER

74.2857142857143 ≈ 74.28571 <-- Loan to Value Ratio

(Calculation completed in 00.004 seconds)

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Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

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BMS College of Engineering (BMSCE), Bangalore

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< 15 Important Formulas of Mortgage and Real Estate Calculators

Monthly Mortgage Payment

Go Monthly Payment = (Mortgage Amount*Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods-1)

Break Even Ratio

Go Break Even Ratio = (Debt Servicing Costs+Operating Expenses)/Gross Operating Income

Debt Service Coverage Ratio using ADS

Go Debt Service Coverage Ratio = Net Operating Income-Annual Debt Service

70 Percent Rule

Go Maximum Buying Price = (After Repair Value*0.7)-Estimated Repair Costs

Capitalisation Rate

Go Capitalisation Rate = (Net Operating Income/Current Market Value)*100

Gross Rent Multiplier

Go Gross Rent Multiplier = Property Value/Potential Gross Rental Income

Loan to Value Ratio

Go Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100

Price per Square Foot

Go Price per Square Foot = Property Sale Price/Total Square Footage

Price to Rent Ratio

Go Price to Rent Ratio = Median Home Price/Median Annual Rent

Rental Yield

Go Rental Yield = (Annual Rental Income/Property Value)*100

Land to Building Ratio

Go Land to Building Ratio = Area of Land/Area of Building

Commission Value

Go Commission Value = Commission Rate*Final Sale Price

Floor Area Ratio

Go Floor Area Ratio = Gross Floor Area/Total Lot Size

Return on Equity

Go Return on Equity = Annual Return/Total Equity

Debt Ratio

Go Debt Ratio = Total Debt/Total Assets

Loan to Value Ratio Formula

Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100
LTV% = (MA/APV)*100

What is Loan to Value Ratio ?

The Loan-to-Value (LTV) ratio is a fundamental financial metric used in lending, especially in mortgage transactions, representing the percentage of the loan amount compared to the appraised value of the asset serving as collateral. Higher LTV ratios signify greater risk for lenders due to lower borrower equity, potentially leading to stricter loan terms, higher interest rates, or the requirement of private mortgage insurance (PMI). Understanding LTV ratios helps borrowers gauge their borrowing capacity, down payment requirements, and eligibility for various loan types, while lenders utilize this metric to assess risk levels and determine loan terms, impacting the overall lending decision.

How to Calculate Loan to Value Ratio?

Loan to Value Ratio calculator uses Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100 to calculate the Loan to Value Ratio, The Loan to Value Ratio is a measure of the loan amount compared to the appraised value of the asset being financed. Loan to Value Ratio is denoted by LTV% symbol.

How to calculate Loan to Value Ratio using this online calculator? To use this online calculator for Loan to Value Ratio, enter Mortgage Amount (MA) & Appraised Property Value (APV) and hit the calculate button. Here is how the Loan to Value Ratio calculation can be explained with given input values -> 74.28571 = (26000/35000)*100.

FAQ

What is Loan to Value Ratio?

The Loan to Value Ratio is a measure of the loan amount compared to the appraised value of the asset being financed and is represented as LTV% = (MA/APV)*100 or Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100. Mortgage Amount is a regularly scheduled payment which includes principal and interest paid by the borrower to the lender of the home loan & Appraised Property Value is the estimated monetary worth of a property determined based on various factors such as market conditions, location, size, and condition of the property.

How to calculate Loan to Value Ratio?

The Loan to Value Ratio is a measure of the loan amount compared to the appraised value of the asset being financed is calculated using Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100. To calculate Loan to Value Ratio, you need Mortgage Amount (MA) & Appraised Property Value (APV). With our tool, you need to enter the respective value for Mortgage Amount & Appraised Property Value and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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