Loan-to-Value (LTV) Calculator
Find your LTV ratio, equity, and equity percentage.
Results update as you type.
How it works
Loan-to-value, almost always written as LTV, is the ratio lenders scrutinise most when deciding whether to approve a mortgage and on what terms. An LTV calculator takes two numbers, the size of your loan and the value of the property securing it, and returns the borrowed percentage along with the equity you hold in both dollars and percent. A lower LTV means you have put more skin in the game and the lender carries less risk. The ratio drives real outcomes. Most conventional loans want LTV at or below 80% to avoid private mortgage insurance, and the best interest rates are reserved for borrowers with plenty of equity. Cross above roughly 80% and lenders typically add insurance premiums or decline the application, because a thin equity cushion leaves them exposed if prices fall. The calculation works because the property acts as collateral, so the lender needs to know how much of its value is at stake relative to their own resale safety margin. Homebuyers use LTV to see how large a down payment they need, while owners refinancing or tapping a home equity line use it to confirm they qualify. Keeping an eye on your LTV as you repay and as values rise reveals when better borrowing terms open up.
LTV = loan ÷ value × 100
Loan-to-value divides the outstanding loan by the property's value, expressing the borrowed share as a percentage. Because the property secures the debt, this ratio tells a lender how much cushion exists if they ever have to sell after a default. Equity is simply the value the loan does not cover, so equity plus loan always equals the full property value, and the equity percentage is the mirror image of LTV.
Source:Consumer Financial Protection Bureau
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter loan amount and property value.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
Loan-to-value updates instantly as you type — no button to press.
Frequently asked questions
Why does an 80% LTV matter so much?
Eighty percent is the industry threshold for conventional mortgages. At or below it, you generally avoid private mortgage insurance and qualify for the strongest interest rates, because your 20% equity gives the lender a comfortable safety margin. Rise above 80% and lenders usually require mortgage insurance to offset their added risk, increasing your monthly payment until repayment or rising home values bring the ratio back down.
How is LTV different from equity?
They are two sides of the same coin. LTV is the percentage of the property's value that you have borrowed, while equity is the portion you actually own. They always add up to 100%, so an 80% LTV means 20% equity. Equity can be expressed in dollars, the value your loan does not cover, or as a percentage, which is simply 100 minus your LTV.
Can my LTV change after I buy?
Yes, in both directions. Every mortgage payment reduces your loan balance, lowering LTV over time, and rising home values increase the denominator, lowering it further. A falling market does the opposite and can push LTV up, occasionally leaving owners underwater when the loan exceeds the value. Because LTV shifts, it is worth recalculating before refinancing or requesting removal of mortgage insurance.
What LTV do I need to refinance?
Requirements vary by loan type, but many conventional refinances look for an LTV of 80% or lower to secure the best rates and skip mortgage insurance. Some cash-out refinances cap LTV around 80% as well, while certain government-backed programs allow higher ratios. Calculate your current LTV first using your remaining balance and an up-to-date valuation, then compare it against your target lender's published limits.
Does the property value mean purchase price or appraisal?
Lenders generally use the lower of the purchase price and the appraised value when buying, and the current appraised value when refinancing. For a quick estimate, enter your best figure for what the property is worth today. If you are close to an important threshold like 80%, an official appraisal can matter, since even a small valuation difference can move your LTV across a lender's cutoff.