Using a LVR Calculator in Australia: A Step-by-Step Guide
Calculates your loan-to-value ratio and whether lenders mortgage insurance is likely. This guide walks through what each input means, the formula behind the answer and a worked example using typical Australian figures. You can follow along in the free LVR Calculator.
Why it matters
Buying property in Australia involves a deposit, stamp duty, lender requirements such as the APRA serviceability buffer, and ongoing repayments that move with interest rates. Investors also weigh rental yield, negative gearing and capital gains tax.
What you need to enter
The calculator asks for 2 inputs. The table shows each one with the example value used later in this guide.
| Input | Example value |
|---|---|
| Property value ($) | 700000 |
| Loan amount ($) | 600000 |
The formula
LVR = loan ÷ property value × 100.
Worked example
Entering the example values above gives these results:
| Result | Value |
|---|---|
| LVR | 85.71% |
| Deposit or equity | $100,000.00 |
| Maximum loan at 80% LVR | $560,000.00 |
| LMI likely? | Yes, usually above 80% |
The headline figure is 85.71% (LVR). Change any input in the calculator and every result updates instantly, so you can test different scenarios side by side.
How the LVR changes with property value
The table below keeps every other input at the example value and moves only “Property value ($)” up and down by 10% and 20%. It shows how sensitive the LVR is to that one figure.
| Property value ($) | LVR |
|---|---|
| 560,000 | 107.14% |
| 630,000 | 95.24% |
| 700,000 | 85.71% |
| 770,000 | 77.92% |
| 840,000 | 71.43% |
At 560,000 the result is 107.14%; at 840,000 it is 71.43%. If a small change in this input moves the answer a lot, it is worth double-checking that figure before you rely on the result.
A practical tip
Lenders use their own valuation, which can be lower than the price you pay, pushing your LVR up.
Keep going
Before relying on the number, read Common LVR Mistakes (and a Better Way). You might also find these guides useful:
- Extra Mortgage Repayments Calculator Explained for Australians
- How the Offset Account Calculator Works (With a Worked Example)
- Rental Yield Calculator: Formula, Example and What the Result Means
Frequently asked questions
- Do these calculators match what my bank will say?
- Lenders use their own models, expense benchmarks and policies. Use these results to prepare, then speak to a lender or broker.
- Are stamp duty rates current?
- Duty thresholds are indexed or changed regularly. Always confirm with your state revenue office before relying on a figure.
- Is this financial advice?
- No. The calculators give general estimates only and don’t consider your objectives or financial situation.
Run your own numbers in the LVR Calculator.
Open the calculatorGeneral information only. Rates and thresholds change, usually on 1 July. Confirm current figures with the ATO or the relevant authority, and get personal advice for decisions about your situation.