Secured Loan (LTV) & Collateral Calculator
Calculate Loan-to-Value (LTV) ratios, estimate borrowing power against assets, and determine monthly payments with risk assessment benchmarks.
About
In secured lending, the Loan-to-Value (LTV) ratio is the primary metric used by underwriters to assess risk. A lower LTV implies high equity and lower risk for the lender, often resulting in more favorable interest rates. Conversely, high LTV ratios can trigger higher rates, requirement for private mortgage insurance (PMI), or loan denial.
This calculator evaluates the potential loan amount based on asset appraisal and computes the resulting amortization schedule. It specifically highlights the "Risk Zone" of the request, comparing the input against standard banking benchmarks for Real Estate, Vehicles, and Liquid Assets.
Formulas
The Loan-to-Value ratio is calculated as:
LTV = LV × 100%
Where L is the total loan amount and V is the appraised value of the collateral.
Monthly Amortization (M):
M = P ⋅ r(1+r)n(1+r)n − 1
Reference Data
| Asset Class | Typical Max LTV | Risk Threshold |
|---|---|---|
| Residential Real Estate | 80% | Low Risk < 80% |
| Commercial Real Estate | 65% - 70% | Moderate Risk |
| New Automobiles | 90% - 100% | Depreciation sensitive |
| Used Automobiles | 80% - 110% | High Variance |
| Crypto/Volatile Assets | 50% | High Risk > 50% |
| Stocks/Margin | 50% | Call Trigger at 75% |