🏠 Loan-to-Value (LTV) Calculator

By ToolNimba Finance Team · Reviewed by ToolNimba Editorial Review, personal finance content · Updated 2026-06-19

This calculator gives an estimate only. Lenders may use their own appraised value, count fees or second loans differently, and set their own LTV limits and PMI rules. The result is not financial advice. Confirm the exact figures with your lender and speak to a qualified mortgage adviser before borrowing.

Loan amount

Appraised property value

LTV ratio

Loan amount

Equity (value minus loan)

The loan-to-value (LTV) ratio compares how much you are borrowing to how much the property is worth. It is one of the first numbers a mortgage lender looks at, because a lower LTV means less risk for them and usually a better rate and fewer extra costs for you. Enter your loan amount and the property value (or the price and your down payment) and this calculator shows your LTV percentage, your equity, and a note on where you sit relative to the important 80% threshold.

What is the Loan to Value Calculator?

Loan-to-value is simply the loan amount divided by the value of the property, expressed as a percentage: LTV = loan ÷ value x 100. If you borrow $240,000 against a home worth $300,000, your LTV is 80%. The other side of that ratio is your equity, the part of the property you actually own outright, which here is the remaining $60,000, or 20%. As you pay down the loan or as the property appreciates, the LTV falls and your equity grows.

Lenders care about LTV because it measures how much cushion they have if they ever need to repossess and sell. A loan at 60% LTV is well covered even if prices dip, while a loan at 97% LTV leaves almost no margin. That risk is priced into your deal: lower LTVs unlock lower interest rates, while higher LTVs mean higher rates, stricter checks, and often mortgage insurance. The 80% mark is the one most people aim for, because on a conventional US mortgage crossing below it is what lets you avoid (or cancel) private mortgage insurance, known as PMI.

LTV is closely related to, but not the same as, your down payment. On a purchase, your down payment percentage and your LTV add up to 100%: a 20% down payment is an 80% LTV, a 10% down payment is a 90% LTV. When you refinance, there is no down payment, so LTV is calculated from your current balance and a fresh appraisal instead. If you have a second mortgage or home equity loan, lenders also look at the combined loan-to-value (CLTV), which adds all the loans secured on the property together.

When to use it

Checking whether your down payment is large enough to avoid PMI before you make an offer on a home.
Seeing how much equity you have built up before applying to refinance or take out a home equity loan.
Comparing how a bigger or smaller down payment changes your LTV and the rate band you fall into.
Estimating where you stand after a few years of payments or a change in your home value.

How to use the Loan to Value Calculator

Choose an input mode: enter the loan amount and property value directly, or enter the purchase price and your down payment.
Type the two figures into the fields.
Read off your LTV ratio, the loan amount, and your equity.
Check the note to see how your LTV relates to the 80% PMI threshold and typical rate bands.

Formula & method

LTV = loan amount ÷ property value x 100. On a purchase, loan amount = price − down payment, so a 20% down payment gives an 80% LTV. Equity = property value − loan amount.

Worked examples

You are buying a $300,000 home with a $60,000 down payment.

Loan amount = price − down payment = 300,000 − 60,000 = 240,000
LTV = loan ÷ value x 100 = 240,000 ÷ 300,000 x 100
LTV = 0.80 x 100 = 80.00%
Equity = 300,000 − 240,000 = 60,000 (20%)

Result: LTV = 80.00%, which is exactly at the threshold to avoid PMI on a conventional loan.

You owe $190,000 and a refinance appraisal values your home at $250,000.

LTV = loan ÷ value x 100 = 190,000 ÷ 250,000 x 100
LTV = 0.76 x 100 = 76.00%
Equity = 250,000 − 190,000 = 60,000 (24%)

Result: LTV = 76.00%, below 80%, so you likely have enough equity to refinance without PMI.

LTV bands and what they typically mean on a conventional US mortgage

LTV	Down payment	What to expect
60% or less	40%+	Strongest rates, no PMI, easiest approval
80%	20%	Sweet spot: avoids PMI, good rates
90%	10%	PMI usually required until you reach 80%
95%	5%	PMI and tighter checks; higher rate
97% or more	3% or less	High risk to lender; PMI, often special programs

How a $300,000 home maps down payment to LTV

Down payment	Loan amount	LTV
$15,000 (5%)	$285,000	95.00%
$30,000 (10%)	$270,000	90.00%
$45,000 (15%)	$255,000	85.00%
$60,000 (20%)	$240,000	80.00%
$90,000 (30%)	$210,000	70.00%

Common mistakes to avoid

Using the purchase price when the appraisal is lower. Lenders calculate LTV from the appraised value, not the price you agreed. If the home appraises below your offer, your real LTV is higher than you expected, which can mean PMI or a bigger down payment.
Forgetting a second loan in the ratio. If you have a piggyback loan or home equity line, lenders look at combined LTV (CLTV), which adds every loan secured on the property. A low first-mortgage LTV can still fail a CLTV limit.
Assuming PMI cancels the moment you hit 80%. You can usually request PMI cancellation at 80% LTV based on the original value, but lenders automatically drop it only at 78%. Reaching 80% through appreciation often needs a new appraisal to prove it.
Confusing LTV with how much of the loan you have repaid. LTV depends on both the balance you owe and the current value. A rise or fall in property prices changes your LTV even if your balance has not moved at all.

Glossary

LTV (loan-to-value): The loan amount divided by the property value, shown as a percentage. It measures how much of the property is financed by debt.
Equity: The share of the property you own outright: the value minus the amount you still owe. It is the mirror image of LTV.
PMI: Private mortgage insurance, an extra monthly cost lenders require when LTV is above 80% on a conventional loan, protecting the lender if you default.
Appraised value: A professional estimate of what the property is worth, used by the lender as the value in the LTV calculation.
CLTV: Combined loan-to-value, which adds together all loans secured on the property (first mortgage plus any second loan) over the value.
Down payment: The cash you pay upfront on a purchase. On a new mortgage, down payment percentage plus LTV equal 100%.

Frequently asked questions

What is a loan-to-value ratio?

The loan-to-value (LTV) ratio is the size of your loan compared with the value of the property, written as a percentage. You work it out as loan amount divided by property value times 100. A $240,000 loan on a $300,000 home is an 80% LTV.

What is a good LTV ratio?

For a conventional mortgage, 80% or lower is the common target because it lets you avoid private mortgage insurance and usually unlocks better rates. The lower your LTV, the less risk to the lender and the stronger your deal tends to be.

Why does 80% LTV matter for a mortgage?

On most conventional US loans, an LTV above 80% means you pay private mortgage insurance (PMI). Reaching 80% or below lets you avoid PMI on a new loan, or request that it be cancelled on an existing one, lowering your monthly cost.

How do I lower my LTV?

You can lower your LTV by making a larger down payment, paying down the loan balance faster, or benefiting from a rise in the property value. On a purchase, every extra dollar of down payment reduces the loan and therefore the LTV.

Is LTV based on the price or the appraisal?

Lenders use the appraised value, or the purchase price if it is lower, as the value in the calculation. If a home appraises below the agreed price, your effective LTV rises, which can trigger PMI or require more cash down.

What is the difference between LTV and CLTV?

LTV looks at a single loan against the property value. Combined loan-to-value (CLTV) adds together every loan secured on the property, such as a first mortgage plus a home equity line, divided by the value. Lenders check both against their limits.

Sources

Loan-to-Value (LTV) Ratio , Investopedia
What is a loan-to-value ratio and how does it relate to my costs? , U.S. Consumer Financial Protection Bureau