Use this LVR calculator to work out how much of a property's value you plan to borrow. A $640,000 loan on an $800,000 property has an 80% loan-to-value ratio (LVR). That ratio can affect the loan options, rate and whether lenders mortgage insurance (LMI) or another low-deposit cost applies.
The result is a starting estimate. Your lender's accepted valuation, the full loan amount and any approved scheme or waiver determine the application outcome.
How to use the LVR calculator
The tool asks for property value and deposit amount. For a purchase, enter the amount available to put towards the price after allowing for costs you need to pay separately. The calculator subtracts that contribution from the value to estimate the loan.
For a refinance, there is no new purchase deposit. Use the formula below with the proposed total loan and accepted valuation. To reproduce that ratio in this deposit-based tool, enter value minus the proposed loan in the deposit field. That figure represents equity for this calculation; it is not a fresh cash deposit you must save.
LVR = loan amount / accepted property value x 100.
The tool rounds its displayed LVR to one decimal place and uses that rounded figure for its LMI label. Near 80%, do not rely on the label: a $640,320 loan on an $800,000 value is 80.04%, which is above 80% even if it displays as 80%. It also does not assess government schemes, profession waivers or individual lender policy.
Why use an LVR calculator?
It helps you connect the deposit, loan and valuation before comparing products. You can see how a smaller loan or a lower valuation changes the ratio, then check the consequences with a lender.
It does not calculate a personalised interest rate, LMI premium or borrowing approval. Use the LMI calculator for an indicative premium and the mortgage calculator for a separate borrowing estimate.
What is lvr?
LVR is the loan as a percentage of the value used by the lender. Equity is the part of that value left after the debt. They describe opposite sides of the same property balance, but LVR is a percentage and equity is commonly shown in dollars.
For $800,000 value and a $640,000 loan, LVR is 80% and equity is $160,000. A change in value can change LVR without changing your loan or monthly repayment. Our equity calculator explains total and potentially usable equity.
First home buyers: allow for costs before calculating LVR
Your savings need to cover more than the contribution to the property price. Include any duty, registration, legal work, inspections and lender costs that are not financed. Keep a cash reserve too.
Your stamp duty depends on the state, property type, contract date and buyer eligibility. Some eligible purchases above $800,000 can attract no duty, so check the rules for your purchase. Use the relevant first home buyer stamp duty guide and check the official assessment.
In a hypothetical $700,000 purchase, $140,000 savings less an example $28,000 allowance for costs leaves $112,000 towards the price. The required loan is $588,000, or 84% LVR, before any additional financed costs. The $28,000 is an example budget allowance, not a duty quote.
Use our deposit calculator to separate savings from purchase costs. If an LMI premium is added to the loan, include it when checking the lender's maximum permitted LVR.
LVR tiers and your interest rate
Some lenders price loans in LVR bands. A lower band may qualify for a different rate, but the threshold and product conditions vary. A low LVR does not guarantee the best rate or approval.
| LVR | What to check |
|---|---|
| 60% or below | Whether that product offers a lower rate at this band |
| Above 60% to 80% | Rate tiers and whether ordinary lending is available without LMI |
| Above 80% to 90% | LMI or other low-deposit costs, and any qualifying waiver |
| Above 90% | Maximum loan including financed costs, property restrictions and eligible scheme options |
Compare the relevant product through our CommBank, ANZ and NAB guides, then obtain a current quote for your purpose and loan size. A rate quoted for a 60% owner-occupied loan may not apply to a 90% investment loan.
How is LVR calculated?
Use the full proposed loan amount and the value accepted for the transaction. For example, $480,000 divided by $600,000 equals 0.8; multiplied by 100, that is 80%.
For a purchase, a lender may use the lower of price and valuation. Do not assume an agent's higher appraisal will increase the lending value. For refinancing, confirm the lender's current valuation and include cash-out, fees or premiums added to the new loan.
1. LVR calculation for guarantor home loans
A family guarantee can provide additional security for an approved loan. It does not make the borrower's debt disappear or remove the repayment assessment.
A $600,000 loan to buy a $600,000 home is 100% of that purchase price. A lender may structure an approved guarantee around a limited amount, but the security and LMI assessment depend on the actual arrangement. For a proposed $120,000 guarantee against an $800,000 home, the lender also needs to check existing debt and the terms of the guarantee. Those two figures alone do not establish how much security is available or the guarantor's full risk.
The guarantor needs to understand the amount guaranteed, the risk to their property and the conditions for release. Our guarantor release guide explains why release is a separate lender decision.
2. Calculating LVR for an off the plan purchase
If you agree to pay $600,000 and intend to borrow $570,000, the planned LVR is 95%. Suppose a later valuation is $713,000: $570,000 divided by $713,000 is about 79.94%.
That lower ratio applies only if the lender accepts $713,000 as the lending value. Even after 12 months, a lender may still use the contract price rather than the higher valuation. Check its policy, the valuation date, financed costs and approval before relying on an LMI saving.
Values can also fall before settlement. Our off-the-plan buying guide covers valuation and funding risks.
3. How to calculate LVR when you get a low valuation
A $480,000 loan looks like 80% against a $600,000 price. If the accepted valuation is $590,000, the same loan is about 81.36%.
To bring it back to 80%, the loan would need to be $472,000, an $8,000 reduction. That is additional funding needed on top of your existing contribution and costs, unless another approved arrangement is available.
Discuss a valuation review or a different suitable lender with your broker. Ask your solicitor about any contract rights and deadlines. A low valuation does not automatically let you terminate a contract or force the seller to reduce the price.
4. Calculating LVR for a construction loan
Construction lending can involve the land, the building contract, progress payments and an accepted completed value. A simple land-only ratio is not the complete construction assessment.
If the approved total loan is $640,000 and the accepted completed value is $800,000, the completed LVR is 80%. If the value is only $760,000, the same loan is about 84.21%. Confirm how the lender treats variations, funds you must contribute first and cost overruns.
5. How to calculate LVR for refinance
Refinance LVR = total proposed refinance loan / lender's accepted current value x 100.
For a $500,000 loan and $700,000 valuation, LVR is about 71.43%. If you add $50,000 cash-out, the $550,000 loan is about 78.57%, before any financed fees.
A higher valuation may put you in a different rate band. It does not automatically change your current rate, refund an old LMI premium or reduce repayments. Compare the new rate, fees and remaining term through our refinancing guide.
How to lower your LVR without a bigger deposit
Reducing the loan amount or obtaining a supported higher accepted value can lower LVR. Buying a cheaper property can also change the funding needed. A revaluation does not guarantee an increase, and borrowing extra money for the deposit adds debt elsewhere.
Avoiding LMI is a separate question. An eligible scheme, professional waiver or suitable guarantee may allow a higher-LVR loan without LMI. That does not change a 95% loan into an 80% loan for the buyer's repayments.
Australian Government 5% Deposit Scheme
The scheme formerly known as the Home Guarantee Scheme supports eligible owner-occupiers through participating lenders. First home buyers, including eligible buyers who have not owned Australian property in the past 10 years, can apply with a minimum 5% deposit. Eligible single parents or legal guardians may qualify for the separate option with a minimum 2% deposit.
There are no scheme income caps or annual place limits, but citizenship or permanent-residency, ownership, residence, property-price and lender conditions still apply. A guarantee protects the lender; the borrower remains responsible for the loan. It is not a government payment towards your monthly repayments.
Read our 5% Deposit Scheme guide and check the official eligibility guidance. Our LMI waiver guide explains the eligibility checks for profession and lender waivers.
Property type restrictions
Small apartments, unusual construction, rural acreage and properties with limited comparable sales can have different lending requirements. There is no single floor-area or hectare cutoff across every lender.
Get the property checked against a suitable lender's criteria before committing. A calculator's percentage cannot tell you whether that lender accepts the security. Our pre-approval guide explains the difference between a conditional borrowing indication and approval for a specific property.
LVR calculator FAQs
What is a good LVR for a home loan?
80% or less is a useful planning benchmark because ordinary loans often avoid LMI there. Lower bands can offer different pricing, but affordability, property acceptance and product conditions still matter.
Does LVR include stamp duty?
The formula uses the total loan and accepted property value. Duty paid from cash reduces the savings left for the price contribution. If borrowing for costs is approved, the extra debt must be included in the relevant loan and security assessment.
Can I get a 100% LVR loan in Australia?
A suitable family guarantee may support borrowing the full price, subject to lender approval and additional security. This single-property calculator does not assess that structure or the guarantor's risk.
How does a low bank valuation affect my LVR?
With the same loan, a lower value means a higher ratio. You may need more cash, different lending terms or another approved option. Check finance deadlines with your solicitor.
Is LVR different for investment properties?
The formula is the same. Rates, maximum LVR and lending criteria can differ by purpose and product; the calculator does not select an investment lender for you.
Does a lower LVR mean lower monthly repayments?
Only if something affecting repayments changes, such as the debt, rate or term. A property value rise alone changes the ratio, not the required payment on an unchanged loan.
Do renovations affect my LVR?
They may change the accepted valuation, but not necessarily by the amount spent. Additional borrowing for the renovation can increase the debt too. Recalculate both sides of the ratio.
Can I avoid LMI at 90% LVR?
Possibly through an approved waiver, eligible government scheme, guarantee or a product with different low-deposit pricing. Check total costs; no-LMI wording does not always mean no other premium or fee.
Check your deposit, loan and LVR together
Bring the price or estimated value, savings available after costs and the loan amount you need. We can check the property, valuation options and relevant lender or scheme criteria before you rely on the percentage.
Request a free assessment or call 1300 088 065.
References
Information checked 12 September 2026. Loan examples are hypothetical.