™AutoFire™ tools / Sales & finance
Free Auto Loan-to-Value (LTV) Calculator
Calculate auto loan LTV from amount financed and vehicle value. Compare an entered target and see the cash reduction needed to reach it.
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For informational use only. Valuations, advance definitions, and credit decisions vary by lender. Your entered target is a comparison assumption only.
How to use this tool
- 1Use the proposed amount financed, including relevant financed fees and products.
- 2Enter the valuation accepted for this scenario and your chosen LTV target.
- 3Review the ratio and any balance reduction needed; confirm lender rules separately.
How the result is built
LTV = amount financed ÷ vehicle value × 100. Target loan amount = vehicle value × target LTV ÷ 100. The calculator shows either a reduction needed or room below that target, without making a credit decision.
An example from the lot
A $28,000 loan against a $25,000 value is 112% LTV. At an entered 120% target the scenario amount is $30,000, leaving $2,000 below that target. A target is not a promise of lender advance or approval.
A practical guide to this calculation
Loan-to-value helps put a proposed auto loan amount beside the vehicle value used for that transaction. This desk calculator shows the ratio, the balance implied by an entered target, and how much the proposal sits above or below that target. It keeps the arithmetic visible without evaluating a person's creditworthiness.
Worked example using the starting values
A $28,000 loan against a $25,000 value is 112% LTV. At an entered 120% target the scenario amount is $30,000, leaving $2,000 below that target. A target is not a promise of lender advance or approval.
- Loan-to-value ratio
- 112.00%
- Amount at entered LTV target
- $30,000.00
- Reduction needed to reach target
- $0.00
- Room below entered target
- $2,000.00
This example remains here when you change the interactive fields above. Your scenario results are shown inside the tool and can be downloaded as a CSV.
Use one consistent definition of value
The selling price and the valuation used for financing may be different. Before entering a value, identify which figure the lender accepts and which valuation date and vehicle configuration it represents. This tool does not retrieve retail, wholesale, trade, or book values, and it does not choose among them.
Enter the complete amount financed for the comparison you are making. If taxes, fees, products, or negative equity are financed and included in that lender's definition, they belong in the numerator. Comparing a complete balance with a price-only balance produces different ratios even when the vehicle is unchanged.
Read an LTV above 100 percent plainly
At 100% LTV, the entered loan amount equals the entered value. At 112%, the amount is 12% higher than that value. For a $25,000 denominator, a $28,000 numerator therefore gives 112%. The percentage alone does not identify which line item caused the difference; inspect the full balance calculation.
The target field lets you ask a narrow question: what amount corresponds to this percentage of the same value? If the proposal is above it, the calculator shows the reduction required. If the proposal is below it, the tool shows room under that comparison target rather than describing the difference as available credit.
Use the result to check a proposal, not approve it
A dealership may need to reconcile several lender definitions, such as which fees are included or which value guide applies. Keep those assumptions beside the result and rerun the same proposal consistently. An entered 120% target is a scenario number; it is not a statement of any lender's current policy.
When the balance is too high for your comparison, examine the actual deal lines before changing the valuation input. A higher unsupported value can make a ratio look smaller without changing the amount owed. Use the negative-equity worksheet to identify a trade shortfall, then use the loan calculator for the separate payment estimate.
Common questions
Why is a zero vehicle value rejected?
The calculation divides by vehicle value, so a zero denominator cannot produce a defined LTV. Enter a supported positive value. A missing valuation should remain missing rather than being replaced with a number chosen just to make the ratio work.
Does reaching the target guarantee financing?
No. The target belongs to this scenario. A lender can consider other definitions, terms, and application information. The calculator does not collect credit details, contact lenders, determine eligibility, or issue an approval.
How does additional cash down change LTV?
Reduce the amount-financed input by the additional cash actually applied, while holding the same supported vehicle value. For example, reducing a $28,000 balance to $25,000 against a $25,000 value changes the ratio from 112% to 100%.
Method and reference material
Formula and example reviewed October 29, 2026. For another task, browse the free dealership tools directory.