Loan-to-Value (LTV) Calculator

What is a Loan-to-Value (LTV) Calculator?

A Loan-to-Value Calculator is a tool designed to calculate the LTV ratio, which compares the loan amount to the value of the asset being financed. It’s crucial for assessing lending risks and determining borrowing eligibility.

When to use a Loan-to-Value (LTV) Calculator?

Use this calculator when:

• Applying for a mortgage, auto loan, or other secured loans to understand your borrowing ratio.
• Evaluating loan offers and terms based on LTV percentages.
• Determining if you meet a lender’s eligibility criteria.

How to use a Loan-to-Value (LTV) Calculator?

1. Enter the Loan Amount: The amount you plan to borrow.

2. Input the Property Value: The market value of the asset being financed.

3. Click Calculate LTV to obtain the ratio.

The formula is:

LTV Ratio (%) = (Loan Amount ÷ Property Value) × 100

Who needs a Loan-to-Value (LTV) Calculator?

This tool benefits:

• Lenders and Banks: To assess lending risks and decide on loan approval.
• Borrowers: To check eligibility and understand loan requirements.
• Financial Analysts: To evaluate the financial viability of secured loans.