BizJourney
Home › Formulas › Loan-to-value

How to calculate Loan-to-value

The Loan-to-value formula, with plain worked examples you can check yourself.

Loan-to-value = L ÷ V × 100

The result is a percentage (%).

Worked examples

L = 160000 · V = 200000Loan-to-value = 80%
L = 375000 · V = 500000Loan-to-value = 75%
L = 360000 · V = 400000Loan-to-value = 90%

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Multiply by 100 to show the answer as a percentage.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Investing & Returns.

Related terms

DividendBondHedgingArbitrageLeverageAsset allocation

Practice Loan-to-value with real numbers

Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.

Play BizJourney free →