Loan-to-value calculator
Measure loan balance against property value.
- Formula and assumptions shown
- Table and CSV export
- Runs in your browser
How it works
LTV compares one entered secured loan amount with the property value you enter. For several liens, this form has one loan input; only combine balances yourself if that matches the ratio you intend to examine.
LTV = loan amount ÷ property value × 100%.
LTV is a ratio, not an approval decision. Providers can use different valuation dates, limits, and underwriting rules, so the page leaves thresholds to the visitor.
Assumptions
- Property value is the estimate or valuation you enter.
- Loan amount is a single non-negative balance.
- The ratio does not include lender-specific adjustments or eligibility thresholds.
- Appraisal, insurance, taxes, and legal costs are excluded.
Worked example
$280,000 loan on a $350,000 property
LTV is $280,000 ÷ $350,000 × 100% = 80%, leaving $70,000 of value above the loan balance before transaction costs.
Step by step
- Divide the loan by the value. $280,000 loan ÷ $350,000 property value = 0.8.
- Express it as a percentage. 0.8 × 100% = 80% loan-to-value.
- Equity. $350,000 − $280,000 = $70,000 of equity, which is the other 20% of the value, the same position as a 20% down payment on a $350,000 purchase.
How to read your result
The headline is the loan-to-value ratio: the share of the property’s value that is financed. A higher percentage means a thinner equity cushion. Equity is property value minus the loan. If the loan is larger than the value, equity is negative and the ratio is above 100%, a position often described as being underwater.
The ratio uses whatever value you enter. For a purchase, lenders commonly use the lower of the sale price and the appraised value; for a refinance or home equity loan they use a current appraisal or other valuation. Lenders use LTV to set pricing tiers, decide whether mortgage insurance is required, and cap how much can be borrowed, but those thresholds differ by lender and program and are not applied here.
This form takes one loan. For a first mortgage plus a home equity loan or HELOC, lenders look at combined loan-to-value, which adds all loans secured by the home; the home equity calculator works in those terms.
What changes the result most
- Property value
- If the appraisal came in at $320,000 instead of $350,000, the same $280,000 loan would be 87.5% LTV and equity would fall to $40,000. A low valuation raises the ratio without any change to the loan.
- Loan amount
- On a $350,000 value, every $3,500 of principal moves LTV by one percentage point. A $262,500 loan is 75% LTV, with $87,500 of equity.
Questions
What LTV do I need?
There is no universal threshold in this calculator. Limits depend on the lender, product, property, and borrower.
Does LTV use the purchase price?
Use the value relevant to your scenario. A lender may use an appraisal or another valuation under its own rules.
Does this calculate combined LTV for multiple loans?
No. It uses one loan amount. Add secured balances yourself before entering them only when you intend to compare their combined amount with the same property value.
What is a loan-to-value ratio?
Loan-to-value, or LTV, is the loan balance divided by the property’s value, shown as a percentage. A $280,000 loan on a $350,000 home is 80% LTV. It describes how much of the property is financed and how much is equity; it says nothing about income, credit, or other debts.
How do you calculate LTV?
Divide the loan amount by the property value and multiply by 100. For a purchase, the loan amount is the price minus the down payment; for an existing loan, use the current balance from the latest statement and a current value estimate. Paying down principal lowers the ratio over time, and so does a rise in the home’s value.
What LTV avoids PMI?
On conventional loans, private mortgage insurance is typically required when the loan is above 80% of the home’s value, which is a down payment under 20%. For an existing conventional loan, federal law generally allows a request to cancel PMI once the balance is scheduled to reach 80% of the original value and ends it automatically at 78% if payments are current. FHA, VA, and USDA loans have their own insurance or fee rules.
More in Home & mortgage
Sources
These references explain the concepts behind the calculation. They do not endorse this site. Estimates leave out any cost or condition you did not enter.