Loan to Value Ratio (LVR) Calculator

LVR is important in determining how much you may be able to borrow or the interest rates you might be eligible for. See how your purchase price and deposit stack up using our LVR calculator. Remember, you'll need an LVR of 95% or less to apply for a home loan with us.

LVR Calculator


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What other home buyers are asking about LVR

There's no point re-inventing the wheel. Here's what other savvy home buyers are frequently asking us. If you're still stuck for help, then why not check out all of our home loan FAQs.

What is Loan to Value Ratio (LVR)?

Loan to Value Ratio, also known as LVR, is the ratio of the value of the property to the value of the loan as a percentage. For home buyers' the size of the deposit plays a key role in determining the LVR, as the larger your deposit, the lower your LVR will be. Your LVR can impact interest rates and products that may be available to you, and it can determine whether you’ll need to pay lenders' mortgage insurance (LMI) or other lender risk fees.


To calculate your LVR, divide the amount you need to borrow (e.g. $400,000) by the value of the property (e.g. $500,000) and multiply this by 100 to give you a percentage. 

$400,000/$500,000 x 100 = 80% LVR. This would mean you need a 20% deposit or equity of $100,000 towards your $500,000 property.

To calculate your loan-to-value ratio (or LVR), you’ll need to divide the amount you plan to borrow by the value of the property. The resulting figure is your LVR, which is expressed as a percentage. 

Here’s the formula: LVR = (Loan Amount / Property Value) × 100 

Here’s an example: you’d like to borrow $500,000 and the property price is $600,000. The LVR of the home loan would be calculated like this: ($500,000 loan ÷ $600,000 property value) x 100 = 83.3% LVR 

Our LVR calculator shows the value of your home loan as a percentage of the property’s value. 

A low loan-to-value ratio (LVR) could indicate to the lender that you have a larger deposit or equity in the property. This is often seen as a lower level of risk to the lender and could lead to more favorable loan terms, such as lower interest rates or more flexible repayment options. 
A higher LVR may result in higher interest rates and stricter lending criteria in some circumstances.


Let's crunch those numbers

Our calculators are here to help you along your home buying journey. From working out stamp duty to helping you calculate your borrowing power or repayments.

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Interest Rate Calculator

Interest Rate Calculator

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Mortgage repayment calculator

Mortgage Repayments

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Stamp duty calculator

Stamp Duty

Work out how much stamp duty you may need to pay in each state or territory across Australia.


Important information

Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. All applications are subject to credit assessment, loan eligibility and lending limits. Terms, conditions, fees and charges apply. If you require financial or tax advice you should consult a licensed financial or tax adviser

The results of the LVR calculator are based on information you have provided and is to be used as a guide only.  Calculator by Widget Works.

ˇ An indicative interest rate and estimated repayments are not a formal approval for a loan, so don’t enter any financial commitments based on it. They are a guide only, based on the basic information you provide and the credit score we obtain for the primary application and is not a suggestion or recommendation of any loan product.

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