Loan-to-Value (LTV) Calculator
Enter the loan amount and the property value to calculate the loan-to-value ratio (margin of financing) and your equity.
This result is an estimate only. Check with your bank or the relevant authority before making decisions.
How it is calculated
- LTV = loan amount ÷ property value × 100
- Equity = property value − loan amount
Worked example
A RM450,000 loan on a RM500,000 property:
- LTV: RM450,000 ÷ RM500,000 = 90.00%
- Equity: RM500,000 − RM450,000 = RM50,000
Why your number may differ
Banks set maximum margins and value the property themselves. The value they use may differ from the purchase price you enter.
Frequently asked questions
What is LTV?
LTV is the loan divided by the property value. The margin of financing is the same idea.
Who sets the maximum margin?
Banks set their own maximum margins and value the property themselves, so the bank's valuation may differ from the purchase price.
How is equity calculated?
Equity is the property value minus the loan amount.