What is the Loan to Value (LTV) Ratio Calculator?

The Loan to Value (LTV) Ratio Calculator is a tool that helps users determine the ratio of a loan to the value of a property, which is an important measure for lenders and borrowers. By entering the loan amount and the property’s market value, the calculator computes the LTV ratio as a percentage and provides a remark on the associated risk level. This helps users understand the likelihood of loan approval, assess financial risk, and make informed decisions when applying for a mortgage or property loan.

How to Use:

1. Enter Loan Amount (PKR): Input the total loan you intend to borrow.
2. Enter Property Value (PKR): Input the market value of the property you want to finance.
3. Click “Calculate”: The calculator computes the Loan to Value ratio and evaluates the risk.
4. Review Result: The output shows your loan amount, property value, LTV ratio, and a remark indicating whether the loan is low, moderate, or high risk for lenders.