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Debt Service Coverage Ratio
Debt Yield
Standard Debt Metrics Loan & Mortgage Risk Assessment

Loan to Value Ratio

Loan amount as a percentage of property value.

Example Result

Sample Data
76.88%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Loan to Value Ratio Formula

Loan Amount / Property Value x 100
$308,000 / $385,000 x 100
76.88%

What This Means

A sample property priced at $385,000 with $2,850/month rent has a loan to value ratio of 76.88% at Purchase (Month 0). LTV determines your leverage level and risk. Higher LTV means less equity and more risk but potentially higher returns. Lenders typically cap LTV at 75-80% for investment properties. As the property appreciates and you pay down the loan, LTV decreases.

Where This Value Comes From

Loan to Value Ratio is not entered directly — it is calculated from Loan Amount and Property Value. See the formula breakdown above and the detailed inputs below.

Inputs That Determine Loan to Value Ratio

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Why It Matters

LTV determines your leverage level and risk. Higher LTV means less equity and more risk but potentially higher returns. Lenders typically cap LTV at 75-80% for investment properties. As the property appreciates and you pay down the loan, LTV decreases.

Detailed Explanation

Loan to Value Ratio (LTV) shows what percentage of the property's value is financed by debt. An 80% LTV means 80% is borrowed and 20% is your equity.

Example

Sample Result
80.00%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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