LTV (Loan-to-Value) Calculator
This LTV (loan-to-value) calculator works out the single number lenders use most to price a mortgage: the percentage of the property's value you're borrowing. Enter the loan amount and the property's value to see your LTV instantly — a lower LTV almost always unlocks a better interest rate, since it represents less risk to the lender.
The amount you're borrowing, or your current outstanding home loan balance.
The purchase price, or the property's current market/appraised value if you're refinancing.
Loan-to-value ratio
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The percentage of the property's value you're borrowing — e.g. 75% for a ₹60,00,000 loan on a ₹80,00,000 property.
The portion of the property's value that's genuinely yours — property value minus the loan amount.
How to use this ltv calculator
- 1Loan amount: what you're borrowing (or currently owe, if remortgaging) — not the property's price.
- 2Property value: the purchase price for a new mortgage, or a current market/appraised value if you're checking your LTV on an existing mortgage.
- 3Compare your LTV against common Indian lender thresholds — around 75%, 80% and 90% each typically correspond to different down-payment and rate tiers, per RBI's loan-size-based LTV caps.
- 4If refinancing or remortgaging, use an up-to-date valuation, since rising property values can move you into a better LTV band even without paying down the loan.
Understanding your results
Loan-to-value ratio is the number lenders quote most prominently in rate tables — it directly determines which rate tier you qualify for, and crossing a threshold (e.g. from 82% down to 79%) can unlock a meaningfully better rate even for the exact same loan amount. Your equity is the flip side of LTV — the portion of the property that's genuinely yours if you sold today after repaying the loan. As property values rise or the loan balance falls, LTV drops and equity grows, generally in your favour for future refinancing or further borrowing.
The formula
LTV = (Loan Amount ÷ Property Value) × 100A simple ratio: how much you're borrowing, divided by what the property is worth, expressed as a percentage. There's no compounding or time dimension — it's a single snapshot that changes only when the loan balance changes (through repayment) or the property's value changes (through market movement or improvements). Lenders care about LTV because it directly measures their risk: at a low LTV, even a market downturn is unlikely to leave them owed more than the property is worth; at a high LTV, that risk is much greater.
A worked example
A ₹60,00,000 home loan on an ₹80,00,000 property: LTV = (60,00,000 ÷ 80,00,000) × 100 = 75%, with equity of ₹20,00,000. If the same buyer had put down a larger deposit, borrowing only ₹48,00,000 on the same ₹80,00,000 property, LTV would fall to 60% — likely unlocking a meaningfully better rate tier, since lower-LTV deals are typically the cheapest a lender offers. After several years of repayments and modest property appreciation (say the balance falls to ₹52,00,000 and the value rises to ₹88,00,000), LTV improves further to about 59.1%, opening up better refinance rates without the borrower doing anything beyond normal repayment and market movement.
Things to know
Lenders almost everywhere price mortgage risk directly into LTV bands — a lower LTV usually unlocks a meaningfully better rate, since it represents less risk to the lender if property values fall. In India, LTV (sometimes called the loan-to-cost ratio for under-construction property) is capped by RBI guidelines based on loan size: home loans up to ₹30 lakh can go up to 90% LTV, loans between ₹30 lakh and ₹75 lakh are typically capped around 80%, and loans above ₹75 lakh around 75% — directly determining the minimum down payment a borrower must provide. A bigger down payment doesn't just reduce your loan amount; it can also unlock a better rate tier from the lender.
Frequently asked questions
What is a good LTV ratio?+
Lower is generally better for rate pricing — 60% or below usually unlocks a lender's best available rates. Most first-time buyers start around 85–95% LTV and improve over time through repayments and property appreciation.
How does LTV affect my mortgage rate?+
Lenders price risk directly into rate tiers based on LTV bands — crossing from a higher band into a lower one (e.g. 85% to 80%) can unlock a noticeably better rate on remortgage, even without changing the loan amount, simply because the lender's risk assessment improves.
Do I need mortgage insurance at a high LTV?+
India doesn't have a direct mortgage-insurance requirement tied to LTV the way some other countries do — instead, higher-LTV home loans here typically just carry a higher interest rate, reflecting the lender's added risk.
How can I lower my LTV without selling?+
Two ways: pay down the loan balance faster (see our loan prepayment or mortgage overpayment calculators), or benefit from property value appreciation, which lowers LTV even with no change to the loan balance — get a fresh valuation before remortgaging to capture any gains.
What's the difference between LTV and equity?+
They're two views of the same relationship: LTV is the percentage you owe relative to the property's value; equity is the currency amount you'd keep after selling and repaying the loan. As LTV falls, equity rises by definition — they always move in opposite directions.
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