Want to know how your business will be evaluated by potential lenders? Our financial calculators will help you understand and compute the most commonly used evaluation metrics.
Loan-to-Value (LTV) Calculator
Loan-to-value ratio (LTV) is the borrowed amount divided by the asset value you are purchasing or refinancing.
Usually banks finance up to 80 percent to 90 percent of the LTV, depending on the type of collateral and credit history of the borrower.
The following formula determines the LTV:
LTV = Total loan amount/total value of object being purchased (property value + goodwill)