This LTV calculator computes your loan-to-value ratio — the percentage of a property’s value that a loan represents — plus your equity share and the maximum loan any target LTV permits.
The Ratio Lenders See First
LTV = loan ÷ value × 100. It prices risk: a borrower with 20% down has both more to lose and a smaller loan against the collateral, so lenders reward 80% LTV with their best rates and no PMI. Value is the lower of purchase price or appraised value on a purchase — an appraisal that comes in light raises your effective LTV, and deals get renegotiated around exactly this arithmetic. The down payment that produces a target LTV is our Down Payment Calculator's specialty; the combined first+second mortgage version (CLTV) matters for home-equity borrowing. Part of our Finance Calculators collection.
Worked Example (Verified)
$360,000 loan on a $450,000 home:
- LTV = 360,000 ÷ 450,000 = 80.0% — the PMI boundary, exactly
- Equity: $90,000 (20%) — the cushion that makes this the market's favorite number
- Borrow $405,000 instead and LTV becomes 90%: PMI applies, typically 0.5–1% of the loan per year — on that loan, roughly $170–340/month until you cross back below 80%
The Thresholds That Matter
| LTV | What it unlocks / costs |
|---|---|
| ≤ 60% | Best pricing tiers at many lenders; jumbo comfort zone |
| 80% | PMI-free conventional borrowing — the classic 20% down line |
| 90% | Common low-down-payment territory; PMI priced moderately |
| 95–97% | Conventional minimum-down programs (3–5% down) |
| 96.5% / 100% | FHA (3.5% down) / VA & USDA (0% down) programs |
Related Tools
- Down Payment Calculator — hitting your target LTV
- APR Calculator — the rate side of the same loan
- Finance Calculators — the full collection
Frequently Asked Questions
How do you calculate LTV?
Loan amount divided by property value, times 100. $360,000 ÷ $450,000 = 80% LTV. On purchases, value means the lower of the contract price and the appraisal.
What is a good LTV?
80% or below for conventional loans (no PMI, best pricing). Lower is better still for rates, but tying up extra cash has its own opportunity cost — the optimum is personal, the thresholds are not.
How do I lower my LTV?
Bigger down payment, smaller loan, price appreciation, principal paydown, or value-adding improvements followed by a re-appraisal. Every path moves the same fraction — the calculator shows how far each dollar moves you.
What is CLTV?
Combined LTV: all loans against the property (first mortgage + home equity line) divided by value. A 70% first mortgage plus a 15% HELOC is an 85% CLTV — lenders underwrite the stack, not just the top loan.
Does LTV affect refinancing?
Directly: rate-and-term refinances typically want ≤95% (best pricing ≤80%), cash-out refinances cap lower (often 80%). Your current LTV decides which shelf of offers you shop from.
Is this LTV calculator free?
Yes — free, instant, no sign-up.