LTV calculator: loan to value and equity
Last checked UK · illustrative onlyNot a lender or brokerAboutDisclaimer
Published by Rodway Labs — not a mortgage adviser
The tool: work out your current loan-to-value and equity, how much equity you need to hit a target LTV band, and how a further advance would affect LTV.
Assumptions
- Outstanding balance starter matches EXAMPLE £185,000; property value is a separate illustration.
- User-entered valuation only — not a survey.
- LTV bands affect product availability and pricing; this tool does not quote rates.
Your inputs
Starter figures are UK EXAMPLE values you can edit. Scenario rates, not a market quote. 4.19%, 4.39%, 4.14% and 7.49% SVR on this site are labelled EXAMPLE figures, last checked 2 November 2026. Results update as you type.
Results
Current equity
£165,000
Current LTV
52.9%
Equity to clear to reach 75% LTV
Already at or below target on these inputs
£0
Overpayment to reach the next lower LTV band
60% is the lowest common band
Already at or below 60%
Max further advance under 75%
£77,500
Method: LTV = outstanding balance ÷ property value; equity = value − balance. Max further advance under a target LTV = (value × target%) − balance. Valuation is user-entered — not a survey.
Illustrative only — not personalised advice, not a credit or mortgage offer, and not an FCA-regulated recommendation. Your offer and ESIS set the real ERC, fees and terms. Full calculator disclaimer.
What to do next
How to use this calculator
- Enter a realistic property value, such as a recent valuation or sold prices for similar homes nearby.
- Enter the outstanding mortgage from your latest statement or online account.
- Choose the LTV band you are aiming for, for example 75% or 60%.
- Optionally add a further advance to see how borrowing more would move your LTV.
- Read your current equity and LTV, and how far you are from the target band. A lender's own valuation decides the band it uses.
Methodology and equations
LTV = outstanding balance ÷ property value. Equity = value − balance. Max further advance under a target LTV = (value × target LTV%) − balance.
The assumptions are listed in the box near the top of this page.
How this calculator works
Use this to turn a balance and a property value into a loan-to-value percentage and the gap to a band. Crossing a band does not guarantee a cheaper product.
How this is calculated
- LTV = balance ÷ property value × 100.
- Equity = property value − balance.
- For a target band: target balance = value × target %. If you are above it, the gap is the reduction needed; if below, the gap is the headroom before you reach it.
- After a further advance: (balance + extra borrowing) ÷ value × 100.
This matches the code behind the tool. The full formulae are on the calculator methodology page.
Worked example
Scenario rates, not a market quote
EXAMPLE: £185,000 on a £250,000 value is 74% LTV. Equity is £65,000. A 60% band would need a lower balance or a higher value.
Gap to the next band down: to reach 60% on a £250,000 value the balance would need to be £150,000, which is £35,000 lower. The 75% band is already met, but only just. Adding the £999 EXAMPLE product fee to the loan makes it £185,999, or 74.4%, so a valuation £3,000 lower would push this EXAMPLE over 75%.
Values here are inputs, not a valuation. Last checked 2 November 2026.
The starter figures use a £350,000 value: £185,000 is 52.9% LTV, equity is £165,000 and there is £77,500 of headroom before 75%. On a £250,000 value, a £10,000 further advance would take the same balance from 74% to 78%.
Limitations: what this ignores
- The lender’s valuation.
- Fees added to the loan, unless you include them.
- Price indices.
- Whether a band is currently cheaper.
Guides that go with this tool
Questions
- What is LTV?
- Balance divided by property value. £185,000 on £250,000 is 74%.
- Does a lower LTV mean a cheaper rate?
- Often, not always. This tool does not price products.
- Whose value counts?
- The lender’s valuation, not an estate-agent estimate.
- What is equity?
- Value minus balance on the numbers you enter. It is not cash you can withdraw.
- Is this advice to borrow more?
- No. Borrowing more raises LTV.
Notes & FAQs
- Whose valuation counts?
- Lenders use their own valuation (or automated valuation), which can differ from your estimate or an estate agent’s view.