What this calculator helps you do
Compare a loan balance with property value and estimate equity or the paydown needed to reach a target LTV. The calculation runs entirely in your browser; SENNA Finance does not receive the values entered into this tool.
Worked example
Using the default example—property value of $400,000, loan balance of $320,000, target ltv of 80%—the calculator returns loan-to-value ratio of 80.00%; equity percentage: 20.00%; estimated equity: $80,000.00. Change the assumptions to match your own case rather than relying on the example.
Formula and calculation basis
Inputs are converted to the periodic units required by the formula. Results are calculated with full JavaScript numeric precision and rounded only for display.
How to interpret the result
Lower LTV generally means a larger equity cushion, but property valuations can change and lenders may use a different appraised value.
Common mistakes to avoid
- Using the original purchase price instead of a current accepted valuation.
- Subtracting selling costs from value inconsistently.
- Assuming the target LTV guarantees a specific rate or approval.
Limits and assumptions
This ratio does not include credit quality, income, lien priority, or lender-specific valuation policy.
Outputs are estimates, not contractual quotations, regulated disclosures, tax advice, investment advice, or a substitute for professional review.
Frequently asked questions
How is LTV calculated?
Loan balance is divided by property value and expressed as a percentage.
What is combined LTV?
Combined LTV includes multiple loans secured by the same property; this tool accepts one entered balance.
Can property value changes alter LTV?
Yes. A new appraisal or market movement changes the denominator.
Sources and reference context
External references provide educational context and do not imply endorsement of SENNA Finance.