Loan To Value (LTV) Calculator


What is the Loan to Value calculator, calculating loan amount based on purchase price and down payment with currency formatting and chart visualization.



Result Loan To Value 0% Loan Amount $0
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Loan To Value Formula

Loan to value = Loan amount / Purchase price * 100

$6100 / $4600 * 100.0 = 132.61%.If Sarah purchases a car worth $4600 for $6100, her loan to value is 132.61%. This percentage indicates how much of the purchase price she needs to finance through a loan, with 100% being the entire purchase price and 0% meaning no financing needed.

Loan Amount Formula

Loan amount = Purchase price - Down payment

$7100 - $7200 = $-100.If Alice buys a house for $7200 with a down payment of $7100, she actually owes $100 to the seller. The result of -$100 indicates that the buyer is required to pay $100 less than the purchase price, meaning they received more than their initial payment amount.

Meaning

The Loanto Value (LV) is a measure of value that takes into account the quality and characteristics of a particular asset, such as property. It provides an indication of what buyers are willing to pay for an asset at a given time. The LV helps individuals make informed decisions when buying or selling assets by providing a standardized benchmark for comparison.

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