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Loan-to-Value & Deposit Calculator

Work out your LVR, the deposit needed to reach a target band, and whether mortgage insurance is triggered.

  • Answers as you type
  • Every formula cited
  • Calculated in your browser
SettingsSettings for this calculationUS
Market
Imperial · sales tax
The agreed purchase price.

Enter the PRICE here, not the valuation, because the loan on the line below is derived as price minus deposit — entering a lower valuation instead shrinks the loan rather than raising the LVR, which is the opposite of what a down-valuation does to you. Lenders then apply their LVR to the LOWER of price and valuation, so if the valuation comes in under the price the ratio this page reports is optimistic and the gap has to be met in cash. That is a common and unwelcome surprise late in a purchase.

Cash you are putting in.

The deposit alone is not the cash you need. Transfer tax, legal fees, survey, lender fees and moving all sit on top and are not lendable — budget them separately.

The band you are trying to reach.

Eighty percent is the usual mortgage-insurance threshold. Lenders also price in bands below it — 75%, 70%, 60% — and each step down typically buys a better rate, so it is worth knowing how far you are from the next one.

Loan-to-value ratio

85 %

High confidence

Above 80% LVR, mortgage insurance is normally required. Its cost is commercial pricing set by insurers and lenders — this calculator does not estimate the premium, because no public table exists to estimate it from.

Loan amount
$425,000
Deposit as a share of value
15 %
Deposit needed for 80% LVR
$100,000
Shortfall against that target
$25,000
Equity at completion
$75,000
Then change the inputs to see how far the answer moves.

Show calculation logic

How this was calculated

Formula source(s)

  • LVR = loan ÷ property value. An 80% LVR is the near-universal threshold above which lenders require mortgage insurance (LMI in Australia, CMHC or private insurance in Canada, PMI in the United States)
  • Premium amounts are commercial pricing and are not published as a public table; this calculator computes the threshold, not the premium

Inputs used

Property value
500000
Deposit / down payment
75000
Target LVR (%)
80

Intermediate steps

Loan amount
$425,000
Deposit as a share of value
15 %
Deposit needed for 80% LVR
$100,000
Shortfall against that target
$25,000
Equity at completion
$75,000
Final result85 %

Confidence note: Above 80% LVR, mortgage insurance is normally required. Its cost is commercial pricing set by insurers and lenders — this calculator does not estimate the premium, because no public table exists to estimate it from.

What this calculation does not cover

  • Mortgage insurance premiums are not calculated here. They vary by insurer, lender, loan purpose, borrower profile and jurisdiction, and are not published as a table that could be applied honestly.
  • Lending decisions rest on income, expenditure, credit history and stress-tested affordability as well as LVR. A comfortable LVR does not by itself mean an approval.
  • Excludes transfer tax, legal fees and other completion costs, which are not lendable and must come from the same pot as the deposit.

Computed in your browser — nothing you enter is uploaded. Presented in US customary units and US trade terminology. Where a formula follows a published standard, that standard and its edition are cited beside it on this page; where none governs, the page says so. Local amendments override model codes — verify against the code in force where you build.

Sources checked 2026-09-06 · in the site-wide review of 2026-09-06 · v1.0.1

Regulatory standards & verification citations2
  1. LVR = loan ÷ property value. An 80% LVR is the near-universal threshold above which lenders require mortgage insurance (LMI in Australia, CMHC or private insurance in Canada, PMI in the United States)
  2. Premium amounts are commercial pricing and are not published as a public table; this calculator computes the threshold, not the premium
Cite this page

Your workspace

Most jobs need more than one number. Add the calculators you need next and they open right here, underneath this one — your figures stay on screen and nothing is lost to a page change.

Now that you have the number

These guides cover the work this quantity is for — the first ones run this calculator inside the section that raises the question.

How to calculate loan-to-value & deposit in 4 steps

  1. Property valueThe agreed purchase price.
  2. Deposit / down paymentCash you are putting in.
  3. Target LVR (%)The band you are trying to reach.
  4. Loan-to-value ratioThe tool computes the loan-to-value ratio from those figures and shows the formula, its sources, and a confidence rating alongside it.

Loan-to-value ratio by property value

Page defaults, not your figures above.

Property valueLoan-to-value ratio (%)
50,0000
100,00025
200,00062.5
500,00085
1,000,00092.5
2,000,00096.3
5,000,00098.5

Frequently asked questions

Why does this not tell me what mortgage insurance will cost?
Because there is no honest way to. LMI in Australia, private insurance in Canada and the United States are all commercial products priced by a small number of insurers, varied by lender, loan size, loan purpose and borrower profile, and not published as a public table. Any site quoting a precise premium is either using one lender's schedule or making it up. What can be stated truthfully is the LVR that determines whether a premium applies at all.
What happens if the valuation comes in low?
Your LVR rises, because lenders work from the lower of price and valuation. A property agreed at $500,000 but valued at $480,000 means your $100,000 deposit is now 20.8% of the price but the loan is measured against $480,000 — and the gap has to be found in cash or the price renegotiated. It is one of the most common late-stage problems in a purchase.
Is it worth pushing to the next LVR band?
Often, and by more than people expect. Lenders price in steps rather than continuously, so moving from 81% to 80% can change both the rate and whether insurance is required — a much bigger effect than the extra 1% of deposit. The shortfall figure in the breakdown tells you exactly how far away the next band is.
Preliminary estimate, not certified engineering. This tool produces an indicative quantity calculation for planning purposes only — it is not a certified structural analysis, a guaranteed material takeoff, or a substitute for building department approval. Always verify measurements on-site and have a licensed contractor or structural engineer review any load-bearing, code-sensitive, or safety-critical work before purchasing materials or starting construction. Spotted an arithmetic or standards error? Report it to contact@craftquantities.com with your inputs — a confirmed fix gets a permanent check of its own, so the same mistake cannot come back.