LVR Calculator
Calculate your loan-to-value ratio (LVR) from the property value and secured debts. Compare additional borrowing with your chosen limit, then model a guarantee and a release target.
Property and secured debts
Use the valuation for this scenario. Change it to compare a refinance valuation.
Only include loans secured against this borrower property. Leave unused balances at zero.
Add cash-out or costs that will become secured debt. Do not re-enter the existing balances.
Your chosen comparison limit. The starting 75% is an example, not a lender rule.
Guarantee scenario
Enter zero to model no guarantor property.
An entered assumption for existing debt plus modelled guarantee support.
Maximum support to model. The signed guarantee determines legal liability.
The borrower-only ratio you want to reach. Meeting it does not release a guarantee automatically.
Results
Correct the marked input to calculate LVR.
Proposed LVR
80.00%
Total proposed debt / borrower property valueDebt at your target
$375,000.00
Borrower property value × target LVRDebt reduction to target
$25,000.00
Before any guarantee supportModelled guarantee support
$20,000.00
Limited by the cap and guarantor capacityExisting-loan LVR is 70.00%. Proposed LVR is 80.00%. The guarantee scenario leaves an uncovered gap of $5,000.00.
Debt and release targets
Release figures show two separate alternatives: reduce debt at this property value, or reach the required value at this debt.
| Measure | Result |
|---|---|
| Existing secured debt | $350,000.00 |
| Existing-loan LVR | 70.00% |
| Proposed total debt | $400,000.00 |
| Property equity after proposed borrowing | $100,000.00 |
| Unused debt allowance at target | $0.00 |
| Debt allowed at release target | $400,000.00 |
| Debt reduction for release target | $0.00 |
| Property value for release target | $500,000.00 |
Separate guarantor security
The exposure ratio uses existing guarantor debt plus modelled support, divided by the guarantor property value. It does not change the borrower LVR.
| Measure | Result |
|---|---|
| Gap above borrower target | $25,000.00 |
| Entered guarantee cap | $20,000.00 |
| Guarantor capacity at entered limit | $280,000.00 |
| Modelled guarantee support | $20,000.00 |
| Uncovered gap | $5,000.00 |
| Guarantor security exposure ratio | 36.67% |
All target ratios and the guarantee cap are entered assumptions. These results measure debt against security values. Lender approval also requires a separate assessment of the loan and borrower.
A guarantee can expose the guarantor's property to loss. Legal liability, release conditions and lender consent depend on the guarantee terms. Guarantors need independent advice on those terms.
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How to Calculate LVR
LVR is secured debt divided by the relevant property value, multiplied by 100. Moneysmart's LVR definition uses the loan amount as a percentage of the asset value.
In this example, $300,000 and $50,000 of existing secured balances total $350,000. Add $50,000 of proposed borrowing to reach $400,000. Dividing $400,000 by the $500,000 property value gives an LVR of 80%.
A zero property value cannot produce an LVR. A loan above the property's value produces an LVR above 100% and negative property equity.
Refinance and Existing-Loan Scenarios
For a refinance LVR calculation, combine the balances secured against the borrower property and add any proposed increase. The existing-loan figure uses the same valuation without that increase.
Correct example: two loans secured against the property belong in the total. Incorrect example: adding an unrelated unsecured credit card balance inflates this property's LVR. Include that balance only if the proposed refinance will turn it into secured debt, and count it once.
A lower valuation raises LVR even when the debt stays unchanged. With $400,000 of debt, a $450,000 valuation produces 88.89% LVR. A $550,000 valuation produces 72.73%.
Using an LVR Target
Multiply the property value by your target percentage to find the debt allowed by that arithmetic. At a chosen 75% target, a $500,000 property allows $375,000 of debt. Reducing the example's $400,000 debt by $25,000 reaches that target.
Property equity is value minus debt. Unused debt allowance is the amount below your chosen target, with zero shown when you exceed it. That allowance is separate from approved borrowing capacity.
The same formula applies across Australia, including NSW. For an ANZ, CBA or CommBank scenario, enter the relevant valuation and your selected limit. This calculator does not assign a lender's policy limit or decide loan approval.
Guarantee Exposure and Release Targets
The guarantee model starts with the debt above the borrower's chosen LVR target. It then limits support to the smaller of that gap, the entered guarantee cap and available guarantor capacity.
Guarantor capacity is the guarantor property value multiplied by its entered security limit, less existing secured debt, with a minimum of zero. In the example, $600,000 at 80% allows $480,000. Subtracting $200,000 of existing debt leaves $280,000 of capacity.
The borrower gap is $25,000, but the separate guarantee cap is $20,000. Modelled support is therefore $20,000, leaving a $5,000 uncovered gap. Guarantor security exposure is ($200,000 + $20,000) / $600,000 × 100, or 36.67%.
For release planning, an entered 80% borrower-only target allows $400,000 debt on a $500,000 property. Alternatively, divide $400,000 debt by 0.80 to find the required $500,000 property value. At a 75% target, the debt reduction is $25,000 or the required property value is $533,333.33.
Reaching a ratio does not end a guarantee. Moneysmart's guarantor guidance explains the risk to assets and the need to understand the contract. The lender must agree to release under the applicable terms. Independent legal or financial advice helps the guarantor assess the actual obligation.