How to calculate LVR and use our calculator
To calculate your loan-to-value ratio (LVR), simply follow these steps:
Enter the estimated value of the property you’re looking to buy. For instance, you might have a house in mind that’s priced at $600,000.
Now enter the deposit amount you plan to put toward your chosen property. In general, a larger deposit will result in a lower LVR.
Your loan-to-value ratio will be displayed with two decimal points, giving you a clear understanding of your borrowing situation.
To calculate your LVR, simply divide the home loan amount by the property value. For example, $450,000 (loan amount) ÷ $600,000 (property value) = 75% LVR (0.75 x 100).
Advantages of using our LVR calculator
Here are some advantages of using our LVR calculator:
Determine LMI requirements
Our calculator helps you identify whether you need to pay lender’s mortgage insurance (LMI) based on your LVR, allowing you to plan your finances more effectively.
Access to better interest rates
Borrowers with lower LVRs (80% or less) often qualify for better home loan interest rates, which can lead to significant savings over the loan term.
Informed decision-making
By providing a clear picture of your LVR, our calculator enables you to make informed decisions about your deposit and borrowing options, helping you choose the best path for your financial situation.
Budgeting and financial planning
Understanding your LVR allows you to assess your overall financial health and make necessary adjustments to your savings strategy, ensuring you’re better prepared for homeownership or refinancing.
What does LVR mean?
LVR stands for loan-to-value ratio, which represents the percentage of the loan amount compared to the property's value. LVR is a crucial metric used by lenders to assess the risk associated with a mortgage. A lower LVR indicates a smaller loan relative to the property’s value, which generally suggests a lower risk for the lender.
For example, if you have a $160,000 deposit on a property valued at $800,000, your LVR would be 80%, meaning you would need to borrow $640,000. An LVR greater than 80% typically requires you to pay lender’s mortgage insurance (LMI).
Understanding your LVR is essential, as it not only affects your borrowing capacity and incurring additional costs like LMI, but also influences the interest rates you may be offered by lenders.
What’s the average LVR in Australia?
The average home loan borrower in Australia in 2026 has an LVR of 60.6%, according to Money.com.au’s analysis of thousands of loan requests. The table below shows the average LVR of borrowers across the country.
| State/territory | Average borrower LVR |
|---|---|
NSW | 59.3% |
VIC | 63.2% |
QLD | 60.6% |
SA | 61.1% |
WA | 59.2% |
TAS | 62.1% |
ACT | 62.2% |
NT | 65.1% |
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