How much are you borrowing?
Calculate your loan-to-value ratio to understand your leverage position and how lenders will assess your financing risk.
Why do real estate investors use the Loan-to-Value (LTV) ratio?
Because it is the primary metric lenders use to assess the risk of a loan.
By calculating the percentage of the property price being financed, you gain immediate clarity on your leverage position and your required down payment. The LTV ratio acts as a filter for your financing strategy.
Calculator · LTV Analysis
Loan-to-value ratio
Enter purchase price and downpayment to calculate loan amount, LTV ratio, and financing risk.
Financing
$
The total acquisition cost or current market value of the property.
$
The initial equity capital injected by the investor at closing.
Financing Breakdown · Auto-Calculated
Purchase Price—
Downpayment—
Loan Amount—
LTV Ratio—
LTV Risk Reference
< 65%Low Risk — Strong equity cushion, favorable terms
65 – 75%Moderate Risk — Standard commercial bank range
> 75%High Risk — Higher leverage, stronger performance required
Results · Live
LTV Analysis
Leverage ratio and financing risk profile.
Awaiting your figures
Enter purchase price and downpayment, then hit Calculate.
Loan-to-Value (LTV) Ratio
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RiskLTV
LTV0.00%
Purchase Price$0
Downpayment$0
Loan Amount$0
Equity Percentage0.00%
Loan-to-Value Ratio (LTV)0.00%
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Loan-to-Value (LTV) Ratio
Why do real estate investors use the Loan-to-Value (LTV) ratio?
Because it is the primary metric lenders use to assess the risk of a loan. By calculating the percentage of the property price being financed, you gain immediate clarity on your leverage position and your required down payment.
The LTV ratio acts as a filter for your financing strategy.
Formula
Loan-to-Value Ratio
Loan Amount = Purchase Price − Downpayment
LTV Ratio = (Loan Amount ÷ Purchase Price) × 100
Step-by-Step Example
Step 1
Purchase Price
$2,500,000
Enter the property purchase price or appraised value.
Step 2
Downpayment
$750,000
Enter the investor's upfront equity contribution.
Step 3
Loan Amount
Loan Amount = $2,500,000 − $750,000
$1,750,000
Step 4
Loan-to-Value Ratio
LTV = ($1,750,000 ÷ $2,500,000) × 100
= 70%
Final Insight
70%
This 70% LTV means the investor is financing 70% of the property value and contributing 30% equity through the downpayment.
Lender Risk Visualization
© Annie Scott Realty Group LLC
Estimates only · not financial advice
