Find your loan-to-value ratio from the loan amount and property value.
Calculated locally in your browser.
How is loan-to-value (LTV) calculated?
LTV = loan amount ÷ property value × 100, and combined LTV = (primary loan + second loan) ÷ property value × 100. Use the lower of purchase price and appraised value. A $320,000 loan on a $400,000 home is 320,000 ÷ 400,000 × 100 = 80% LTV with $80,000 equity. At 80% or below you usually avoid mortgage insurance.
Understanding your result
At an LTV of 80% or below you usually avoid private mortgage insurance and qualify for better rates, because the lender has a larger equity cushion. Higher ratios mean more risk to the lender, so expect PMI and stricter terms. Use the lower of the purchase price and appraised value.
Formula and method
LTV = loan amount ÷ property value × 100. Combined LTV (CLTV) = (primary loan + second loan) ÷ property value × 100.
Assumptions and limitations
LTV here divides the loan by the property value you enter. Lenders may use their own appraisal, apply different thresholds for insurance and rates, and treat second loans and refinances differently by region. Property values also change over time. Use the lower of price and appraisal, and treat this as guidance, not lending advice.
Worked example
A $320,000 loan on a $400,000 home is 320,000 ÷ 400,000 × 100 = 80% LTV, with $80,000 of equity.
How to use this tool
- Enter the property value or appraised price.
- Enter the primary loan amount.
- Add a second loan or HELOC if you have one.
- Read the LTV ratio, equity and assessment.
Common mistakes to avoid
- Using the asking price instead of the appraised value.
- Forgetting a second mortgage or HELOC when finding combined LTV.
- Assuming PMI is automatic — it depends on the lender and loan type.
About the Loan-to-Value (LTV) Calculator
The Loan-to-Value Calculator shows what share of a property's value you are borrowing. Lenders use this LTV ratio to judge risk and to decide whether mortgage insurance applies, so it is a key number when buying or refinancing.
Who should use this tool
Home buyers, homeowners refinancing, and anyone comparing mortgage offers.
Benefits
- LTV ratio and home equity in one step.
- Shows your implied down payment and its percentage.
- Combined LTV when a second loan or HELOC is included.
- Private — no figures leave your browser.
Practical use cases
- Checking whether you will need PMI.
- Seeing if you have 20% equity to refinance.
- Comparing how a bigger deposit lowers your LTV.
Frequently asked questions
What LTV avoids mortgage insurance?
On most conventional loans, an LTV of 80% or below (a 20% down payment) avoids private mortgage insurance.
What is combined LTV?
Combined LTV (CLTV) adds all loans secured against the property — such as a first mortgage plus a HELOC — and divides by the property value.
Should I use price or appraised value?
Lenders typically use the lower of the purchase price and the appraised value, so use that figure for the most realistic LTV.