🏡 Loan-to-Value (LTV) Calculator
Enter your mortgage balance and the property value to see your loan-to-value ratio, your equity and how far you are from the 80% threshold.
Quick answer: LTV = loan ÷ property value × 100. A $240,000 loan on a $300,000 home is an LTV of 80%, which means $60,000 (20%) of equity.
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Loan-to-Value (LTV) Calculator inputs
Result
Loan-to-value ratio (LTV)
80%
Standard – no mortgage insurance in most cases
| Loan balance | $240,000.00 |
| Property value | $300,000.00 |
| Equity | $60,000.00 (20%) |
- Pay down to reach 80% LTV
- $0.00
How loan-to-value is calculated
LTV compares what you owe with what the property is worth. The higher the ratio, the more risk the lender takes, so it strongly affects the rate, the fees and whether mortgage insurance is required.
LTV = Loan balance ÷ Property value × 100 · Equity = Value − Loan
Example: $240,000 ÷ $300,000 = 0.80, so the LTV is 80% and your equity is $60,000.
LTV bands
| LTV | What it usually means |
|---|---|
| Up to 60% | Low risk, best rates |
| 60–80% | Standard borrowing |
| 80–90% | Higher rates or mortgage insurance |
| Over 90% | Very limited options |
Tips
- Use the appraised value, or the purchase price if it is lower.
- In the US, conventional loans can drop private mortgage insurance once LTV reaches 80%.
- In Canada, a down payment under 20% requires mortgage default insurance.
- In the UK, the best mortgage rates are tiered at 60%, 75%, 85% and 90% LTV.
This calculator is for information only and is not financial advice. Lender rules vary.
Frequently asked questions
What is a good LTV ratio?
Lenders generally prefer 80% or lower. Below 60% usually unlocks the best mortgage rates, while above 80% many lenders require mortgage insurance or charge higher rates.
How do I calculate LTV?
Divide the loan amount by the appraised value (or purchase price, if lower) and multiply by 100.
How do I lower my LTV?
Make a bigger down payment, pay down the balance, or wait for the property value to rise. Extra principal payments reduce it fastest.
Does LTV apply to car loans and refinancing?
Yes. Lenders use LTV for car loans, refinancing and home equity loans. For a HELOC they often look at combined LTV, which includes all loans secured on the property.
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