Rates & sources
General-purpose calculator. Formulas derive from standard mathematical or statistical definitions.
Source: CalculatorZone methodology — figures refreshed at the start of each tax year.
When to use this calculator
- When you need a fast estimate before making a bigger decision.
- When you want to compare a few scenarios using the same assumptions.
- When you need a clearer starting point before using a detailed quote or formal document.
- When you want to sanity-check a figure you have seen elsewhere before you rely on it.
- When you are preparing for a conversation with an adviser, supplier, or lender and want to arrive with realistic numbers.
A realistic South Africa planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Loan Amount (R)
R1,600,000
Property Value (R)
R2,000,000
After entering these figures, review ltv and equity together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
LTV
Loan-to-value helps you compare product eligibility and understand how much lender risk you are carrying at this deposit level. Crossing key LTV thresholds — typically 90%, 85%, or 75% — can unlock materially better interest rates.
Equity
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
This calculator divides your outstanding mortgage or proposed loan amount by the property's current or purchase value, then expresses the result as a percentage. The figure it produces is your loan-to-value ratio. It assumes a straightforward first-charge residential mortgage and does not account for second charges, shared ownership arrangements, or Help to Buy equity loan balances, which can affect the effective LTV seen by a lender. The tool uses the figures you enter directly — it does not apply any valuation adjustment or index property prices. For remortgage purposes, you should use a current market valuation rather than your original purchase price. This calculator is for illustrative purposes and does not constitute mortgage advice.
Common mistakes
- !Using optimistic assumptions without testing a more cautious scenario as well.
- !Comparing outputs from different tools without checking that the inputs match.
- !Treating the result as a final quote instead of a planning estimate.
- !Rounding inputs too aggressively, which can produce an output that is noticeably different from your actual situation.
- !Stopping at a single run of the tool rather than adjusting the key variable up and down to understand the range of plausible outcomes.
What to do next
- Try at least one more scenario so you can compare a realistic range instead of a single estimate.
- Use the related calculators below to cross-check the decision from another angle.
- Open one of the linked guides if you need more context before you act on the result.
- Write down the key outputs from your best two or three scenarios so you have something concrete to compare when you make the final decision.
- If the result surprises you, change one input at a time to isolate which variable is driving the outcome before drawing conclusions.
Frequently asked
Use arrow keys to navigate items, Enter or Space to expand/collapse.
End-of-article next steps
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