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Quick answer
What does the Loan-to-value ratio calculate?
What percentage of the asset value is financed? This calculator uses loan balance, and current asset value to estimate financed share of value immediately in your browser.
With the values currently entered, the result is 76.2% — loan-to-value ratio. It also shows estimated equity, and value not financed.
How to use the Loan-to-value ratio
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Loan balance
- Current asset value
Loan-to-value ratio formula
Loan balance ÷ current asset value × 100
Assumptions
- Asset value is a current estimate.
- Only the entered secured loan is included.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Loan-to-value ratio example and edge cases
What percentage of the asset value is financed? Let's use a concrete example, then look at the assumptions that can move the answer.
Example: A practical loan-to-value ratio scenario
For this example, use loan balance of 320,000, and current asset value of 420,000. These are starting values, so replace them with numbers that match your situation.
- Loan balance
- 320,000
- Current asset value
- 420,000
Calculated result76.2%loan-to-value ratio
Start with loan-to-value ratio. Then check estimated equity, and value not financed to understand what sits behind the main result.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the main result first. The supporting figures for estimated equity, and value not financed explain how the estimate is built.
- The method is Loan balance ÷ current asset value × 100. Keep the units consistent and use values from the same time period.
Edge cases worth checking
When loan balance is unusual
Asset value is a current estimate. Double-check this input before relying on the result.
When current asset value is uncertain
Only the entered secured loan is included. Run a lower and higher value to see a useful range.
What changes the result most
Loan balance
Use a current amount for loan balance. Include fees or recurring costs that belong in the same figure.
Current asset value
Use a current amount for current asset value. Include fees or recurring costs that belong in the same figure.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Loan balance: 10% lower
288,00068.6%loan-to-value ratio
Loan balance: 10% higher
352,00083.8%loan-to-value ratio
Current asset value: 10% higher
462,00069.3%loan-to-value ratio
Common mistakes
Check loan balance
Asset value is a current estimate. Make sure this matches the number you enter.
Keep current asset value consistent
Only the entered secured loan is included. Use the same units and time period throughout the calculation.
Do not rely on one loan-to-value ratio scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What percentage of the asset value is financed?
A lender’s APR, fees, eligibility rules, and contract control the real offer.