# Loan To Value Ltv Ratio Calculator

Calculating the Loan to Value (LTV) ratio is crucial in determining the risk associated with a mortgage or loan. It is a financial metric that compares the amount of the loan to the appraised value of the property.

### Formula

The LTV ratio is calculated using the formula:

��� �����=(���� �������������� �����)×100LTVRatio=(PropertyValueLoanAmount​)×100

### How to Use

1. Enter the loan amount in the “Loan Amount” field.
2. Enter the property value in the “Property Value” field.
3. Click the “Calculate” button to determine the Loan to Value (LTV) ratio.

### Example

Suppose you have a loan amount of \$150,000 and a property value of \$200,000. The LTV ratio would be calculated as follows:

��� �����=(150,000200,000)×100=75%LTVRatio=(200,000150,000​)×100=75%

### FAQs

1. What is the Loan to Value (LTV) ratio? The LTV ratio is a financial metric that expresses the ratio of a loan to the appraised value of the property.
2. Why is the LTV ratio important? The LTV ratio helps lenders assess the risk associated with a loan. Higher LTV ratios indicate higher risk.
3. What is a typical LTV ratio for mortgages? Conventional mortgages often have a maximum LTV ratio of 80%, meaning the borrower must provide a 20% down payment.

### Conclusion

The Loan to Value (LTV) ratio is a critical factor in the mortgage and lending industry. By using this simple calculator, borrowers and lenders can quickly assess the risk associated with a loan based on the relationship between the loan amount and the property value.