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Home loan calculator

LVR Calculator Australia

Work out your loan-to-value ratio in seconds. Enter the property value and your deposit or loan amount to see your LVR, your equity, and whether you cross the 80% line where Lenders Mortgage Insurance kicks in. AUD, no signup.

Free, no signupAustralian dollarsShows the 80% LMI line
Your purchase
The purchase price, or the lender's valuation if you have one.
$
Enter your
We work out the loan as the price minus your deposit.
Cash and any usable equity you are putting in.
$
Your loan-to-value ratio
80%
$560,000 loan on a $700,000 property. Under the LMI line.
Loan 80%Deposit / equity 20%
Loan amount
$560,000
Deposit / equity
$140,000 (20%)
At 80% or below, you usually avoid Lenders Mortgage Insurance. That keeps a one-off LMI premium off your loan and opens up more lenders and their sharper rates.
At 80% or below you usually avoid Lenders Mortgage Insurance, and you have access to most lenders and their better rates.
Lenders use their own valuation, which can differ from the price. A guide, not financial advice.
Simon Chadwick
Simon Chadwick
Founder, Orbit Money
Method: LVR = loan amount divided by property value, times 100Updated: 16 July 2026Sources: NAB, ANZ, AMP

What LVR means

Loan-to-value ratio, or LVR, is the size of your home loan expressed as a percentage of the property’s value. It is the number a lender looks at first, because it tells them how much of the purchase you are funding with borrowed money and how much with your own. A smaller deposit means a bigger loan and a higher LVR, which reads as more risk to the lender.

The formula is short: LVR = loan amount ÷ property value × 100. Borrow $560,000 against a $700,000 property and your LVR is 80%. The calculator above does this from either side, so you can enter your deposit and let it work out the loan, or enter the loan and let it work out the deposit.

Why 80% is the number that matters

In Australia the 80% mark is the one to know. At an LVR of 80% or below you usually avoid Lenders Mortgage Insurance (LMI), a one-off cost lenders add to higher-LVR loans. LMI protects the lender if you default, not you, and on a large loan it can run into several thousand dollars or more. Cross above 80% and it typically applies; sit at or under it and you generally sidestep it.

An LVR at or under 80% also widens your choice of lenders and tends to earn a sharper interest rate, since the lender is carrying less risk. The lower you go, the better the pricing on offer, which is why borrowers with an LVR under 60% often see the best rates. Our LMI calculator estimates the premium if your LVR does land above 80%.

What counts as a good LVR

There is no single right answer. A lower LVR saves on interest and LMI but ties up more of your cash, so many first home buyers aim for 80% and use a grant or a guarantor to get there sooner.

How to lower your LVR

The two levers are your deposit and the price. Saving a larger deposit, adding a first home owner grant, a family gift, or usable equity from another property all lift the deposit and pull the LVR down. Buying at a lower price does the same. If you already own the home, paying down the loan and any growth in the property’s value both raise your equity, which is why refinancing once your LVR has dropped can win you a better rate.

How to use this calculator

  1. Enter the property value, the price you agreed or the lender's valuation.
  2. Choose whether you want to enter your deposit or your loan amount.
  3. Type the figure. The calculator works out the other side for you.
  4. Read your LVR at the top, with the loan-versus-deposit split shown as a bar.
  5. Check the LMI note to see whether you are above or below the 80% line, and how much more deposit would clear it.

Frequently asked questions

How do I calculate my LVR?
Divide the loan amount by the property value, then multiply by 100. If you are borrowing $560,000 to buy a $700,000 home, that is 560,000 divided by 700,000, which is 0.8, times 100, so an LVR of 80%. If you know your deposit instead of the loan, the loan is the price minus the deposit. A $140,000 deposit on a $700,000 property leaves a $560,000 loan, which is the same 80% LVR. Lenders use their own valuation of the property, which can sit above or below the price you agreed, so the LVR they calculate may differ slightly from yours.
What is a good LVR ratio?
An LVR of 80% or below is widely treated as the sweet spot in Australia. At or under 80% you usually avoid Lenders Mortgage Insurance, you have access to most lenders, and you tend to get their sharper interest rates. The lower the LVR, the lower the risk to the lender, so a ratio under 60% can earn the best pricing. There is no single correct number, since a bigger deposit ties up more of your cash, but 80% is the line most borrowers aim to be at or under.
Does LVR affect LMI?
Yes, directly. Lenders Mortgage Insurance is a one-off cost that lenders add when your LVR is above 80%. It protects the lender if you cannot repay the loan, not you. The higher the LVR above 80%, the larger the LMI premium tends to be, because the lender is carrying more risk on a smaller deposit. Bring your LVR to 80% or below, usually by adding to your deposit, and you generally avoid LMI altogether. This is the main reason an 80% LVR is such a common target.
What does an 80% LVR mean?
An 80% LVR means you are borrowing 80% of the property's value and covering the other 20% with your deposit or equity. On a $700,000 property that is a $560,000 loan and a $140,000 deposit. It matters because 80% is the usual threshold for Lenders Mortgage Insurance: at or below it you normally avoid LMI, and above it you normally pay it. It is the number most first home buyers work toward.
What is the maximum LVR lenders allow?
Most lenders cap a standard home loan at around 90% to 95% LVR, meaning you need a deposit of at least 5% to 10% of the property value. A few will go higher in specific cases, and low-deposit schemes or a guarantor can let you borrow more against a smaller deposit. Above 95% sits beyond most standard loans. The higher your LVR, the more Lenders Mortgage Insurance you can expect to pay on top of the loan.
How can I lower my LVR?
The two levers are a bigger deposit or a lower price. Saving more, using a first home buyer grant, or adding a gift or usable equity from another property all raise your deposit and pull the LVR down. Buying at a lower price does the same. If you already own the home, paying down the loan and any rise in the property's value both lift your equity and lower the LVR over time, which is why refinancing at a lower LVR can get you a better rate.

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Simon Chadwick
About the author
Simon Chadwick
Founder of Orbit Money

Simon is the founder of Orbit Money, a tool that helps people track subscriptions and recurring spend. He builds Orbit's free money calculators and writes about personal finance for Australian and UK readers.

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This tool is a guide, not financial advice. LVR thresholds and LMI vary by lender.