LVR Calculator for Australian Property Buyers
Work out your loan-to-value ratio in seconds. Enter the property value and the loan you need, and this free calculator shows your LVR, your deposit in dollars and as a percentage, and whether you are likely to pay Lenders Mortgage Insurance.
LVR is one of the first numbers an Australian lender looks at, so knowing it early helps you size your deposit, compare lenders, and decide whether to push under the 80% mark before you apply for finance.
Loan-to-Value Ratio
Loan-to-Value Ratio (LVR)is the percentage of the property's value that is financed by a loan. It is calculated by dividing the loan amount by the property value and multiplying by 100.
Lenders Mortgage Insurance (LMI) is typically required by Australian lenders when the LVR exceeds 80%. LMI protects the lender (not the borrower) in case of loan default and can add thousands of dollars to your borrowing costs.
Common LVR thresholds in Australia:
- 60% LVR: Considered low risk. May qualify for the most competitive interest rates.
- 70% LVR: Still a strong position with access to competitive rates.
- 80% LVR: The standard maximum to avoid paying LMI. Requires a 20% deposit.
- 90%+ LVR: LMI will apply. Some lenders allow up to 95% LVR for owner-occupied properties.
This calculator provides estimates for educational purposes only and does not constitute financial advice. Consult a licensed mortgage broker or financial adviser for guidance specific to your situation.
How the lvr calculator works
- 1
Enter the property value
Use the purchase price or, for a refinance, the lender's valuation. LVR is calculated against this figure, and lenders use the lower of the price and the valuation if the two differ.
- 2
Enter your loan amount
Put in the amount you plan to borrow. This is the price minus your cash deposit, before any LMI is added. The gap between the value and the loan is your deposit.
- 3
Read your LVR
The calculator divides the loan by the property value and multiplies by 100. A lower LVR means you are borrowing a smaller share of the property and carry less risk in the lender's eyes.
- 4
Check your deposit and LMI
See your deposit in dollars and as a percentage, and whether your LVR is over 80%, the level where most Australian lenders require LMI. The presets let you test 60%, 70%, 80% and 90% instantly.
- 5
See what it takes to avoid LMI
The calculator shows the largest loan you can take at 80% LVR. If you are above that, it tells you the extra deposit you would need to slip back under the threshold.
A worked Australian example
Say you are buying a $750,000 home and you have saved a $150,000 deposit, so you need to borrow $600,000. Here is how the LVR comes together:
- Property value
- $750,000
- Your cash deposit
- $150,000
- Loan amount required
- $600,000
- Deposit as a percentage
- 20.0%
- LVR ($600,000 ÷ $750,000)
- 80.0%
Borrowing $600,000 against a $750,000 property gives an LVR of exactly 80.0%, with a $150,000 deposit covering the other 20%. Sitting right on 80% means you should avoid Lenders Mortgage Insurance, since most Australian lenders only require LMI once the LVR goes above 80%. If you borrowed even a little more, say $620,000, your LVR would tip to 82.7% and LMI would likely apply. Valuations and lender policies vary, so confirm the exact position with your lender or mortgage broker.
What is LVR?
Loan-to-value ratio, or LVR, is the size of your loan expressed as a percentage of the property's value. You work it out by dividing the loan amount by the property value and multiplying by 100. A $600,000 loan on a $750,000 property is an 80% LVR.
Lenders use LVR as a measure of risk. The more of your own money you put in, the lower the LVR and the less the lender stands to lose if you default and the property has to be sold. That is why a lower LVR usually unlocks better rates and a smoother approval.
The 80% LVR threshold and LMI
Eighty per cent is the number that matters most. Borrow up to 80% of the value, which means a deposit of 20% or more, and you generally avoid Lenders Mortgage Insurance. Go above 80% and most lenders require LMI, a one-off premium that protects the lender, not you, if the loan goes bad.
LMI can run into the thousands and is usually added to your loan, so you pay interest on it for years. Because the jump happens right at 80%, finding a little extra deposit to land on or under the threshold can save a meaningful amount. This calculator shows exactly how much more deposit that would take.
How LVR affects your borrowing
A lower LVR signals less risk, so it often means access to sharper interest rates and a wider choice of lenders. Many lenders publish their best rates only for borrowers under 80%, and some reserve their most competitive pricing for those at 70% or 60%.
A higher LVR is not necessarily wrong. Buying sooner with a smaller deposit can make sense in a rising market, but you take on more debt, pay LMI, and have a thinner equity buffer if values fall. The right LVR depends on your deposit, your borrowing capacity, and how comfortable you are with that trade-off.
LVR when you refinance or buy your next property
LVR is not just a purchase number. When you refinance or draw on equity, the lender recalculates your LVR using a fresh valuation. As your loan balance falls and the property grows in value, your LVR drops, which can let you refinance to a better rate or release equity for your next purchase.
Investors often aim to keep LVR at a level that frees up usable equity without overextending. Knowing your current LVR is the starting point for working out how much you could borrow against the property you already own.
Frequently asked questions
What is a good LVR in Australia?
An LVR of 80% or below is generally considered strong, because it means you avoid Lenders Mortgage Insurance and qualify for most lenders' standard rates. Lower again, around 60% to 70%, can unlock the sharpest pricing some lenders offer. Above 80% is achievable but usually means paying LMI.
How do you calculate LVR?
Divide your loan amount by the property value and multiply by 100. For example, a $600,000 loan on a $750,000 property is $600,000 divided by $750,000, which is 0.8, or an 80% LVR. Lenders use the lower of the purchase price and their valuation as the property value.
What LVR do I need to avoid LMI?
You generally need an LVR of 80% or less, which means a deposit of at least 20% of the property value, to avoid Lenders Mortgage Insurance with most Australian lenders. Some professions and guarantor arrangements can avoid LMI at higher LVRs, so check with your lender or broker.
Can I borrow more than 80% LVR?
Yes. Many lenders allow up to 90% LVR, and some up to 95% for owner-occupiers, but LMI almost always applies above 80%. A higher LVR means a smaller deposit and faster entry, at the cost of more debt, an LMI premium, and a thinner equity buffer if prices fall.
Does LVR include stamp duty and other costs?
No. LVR is based on the property value and the loan against it, not your upfront costs. Stamp duty, conveyancing and other purchase costs are paid in cash on top of your deposit, because lenders size the loan on the property value rather than your total spend.
How does LVR change over time?
Your LVR falls as you pay down the loan and as the property grows in value, since you owe less against a higher value. That is why refinancing later can move you under 80%, potentially removing the need for LMI on the new loan and opening up better rates.
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