$240,000 / $300,000 = 80%
$60,000 (20%)
$60,000
No
Moderate risk — standard conventional
An LTV calculator measures the Loan to Value Ratio by comparing your loan amount with your property's value. It helps borrowers, lenders, mortgage providers, credit unions, and digital banking users evaluate financing eligibility and lending risk.
Our LTV calculator instantly calculates the loan-to-value ratio, down payment, equity, and PMI requirement based on your loan and property values.
Enter the total loan amount you want to borrow.
Enter the current purchase price or market value of the property.
Instantly view and copy the LTV ratio, down payment, equity, and PMI status.
Enter the total loan amount you want to borrow.
Enter the current purchase price or market value of the property.
Instantly view and copy the LTV ratio, down payment, equity, and PMI status.
You can calculate the Loan to Value Ratio manually using your loan balance and your property's current market value. Mortgage lenders, credit unions, and banks commonly use this calculation when reviewing home loans, refinancing, and personal borrowing.
Suppose:
Your Loan to Value Ratio is 80%. Many mortgage lenders consider this a favorable ratio because it may qualify borrowers for better loan terms and reduce the need for Private Mortgage Insurance (PMI), depending on lending requirements.
Understanding the basic parts of the Loan to Value Ratio helps you estimate borrowing power, mortgage eligibility, refinancing options, and home financing costs.
The loan amount is the money borrowed from a lender, credit union, or bank. It forms the numerator in the Loan to Value Ratio calculation.
Property value represents the home's current market price or appraised value. A higher property value generally lowers the Loan to Value Ratio.
The Loan to Value Ratio compares the loan amount with the property's value to measure lending risk and determine mortgage eligibility.
CLTV includes your primary mortgage plus any second mortgages or home equity loans to provide a more complete borrowing assessment.
Home equity is the portion of your property that you own outright. Increasing equity naturally reduces your Loan to Value Ratio over time.
A larger down payment lowers the borrowed amount, resulting in a lower Loan to Value Ratio and stronger mortgage application.
PMI protects lenders when borrowers have higher Loan to Value Ratios and typically applies when LTV exceeds common lending thresholds.
Combined Loan-to-Value (CLTV) includes all secured loans against your property, while PMI is insurance that lenders may require when your primary Loan to Value Ratio exceeds acceptable limits. Although PMI is usually based on LTV rather than CLTV, lenders often review both metrics during mortgage approval and refinancing to assess overall borrowing risk.
Your Loan to Value Ratio directly influences mortgage approval, loan costs, refinancing opportunities, and the amount of equity available in your home.
Lower Loan to Value Ratios usually improve mortgage approval chances because lenders view borrowers as lower-risk applicants.
Borrowers with lower Loan to Value Ratios often qualify for more competitive interest rates and reduced financing costs.
Higher Loan to Value Ratios may require PMI, increasing monthly mortgage payments until sufficient home equity is built.
As home equity grows through repayments or rising property values, your Loan to Value Ratio generally decreases.
A lower Loan to Value Ratio can improve refinancing eligibility and help borrowers secure better loan terms and lower rates.
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This section answers common questions about Loan to Value Ratio, mortgages, refinancing, home equity, borrowing limits, and our loan to value calculator.