# Loan to Deposit Ratio Calculator

Loan to deposit ratio also known as LTD ratio is a method of finding a bank's liquidity. This can be done by dividing the total number of loans by total number of deposits in the bank.

The reason for calculating loan to deposit ratio is to find whether the ratio is high or low. If the LTD ratio is too high then it means that the typical bank do not possess the required liquidity for covering its normal day-to-day operations. On the other hand if the LTD ratio is too low then it means that the bank's earning is not much as it could be.

Formula to calculate loan to deposit ratio:

Enter number of loans and number of deposits in the below calculator and click calculate to find the LTD ratio.

 Loans: Deposits: Loan to Deposit Ratio(%):

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