Loan-to-Value Calculator: The LTV Lenders Use
Work out the loan-to-value ratio — how much of a property's value is mortgaged, and the figure lenders use to price and approve a loan.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Loan-to-value ratio | Equity percentage |
|---|---|---|
| $240k loan · $300k value | 80.00% | 20.00% |
| $180k loan · $200k value | 90.00% | 10.00% |
| $320k loan · $500k value | 64.00% | 36.00% |
| $95k loan · $250k value | 38.00% | 62.00% |
How This Calculator Works
Enter the loan amount and the property value. The calculator divides one by the other to give the loan-to-value ratio as a percentage, and shows the complement — the equity share, the portion of the value you own outright.
The Formula
Part as a Percentage of a Whole
Part is the portion, Whole is the total it belongs to
Worked Example
A $240,000 loan against a $300,000 property is an 80% loan-to-value ratio. The remaining 20% is equity — and 80% is the level at which many lenders stop requiring private mortgage insurance.
Key Insight
Loan-to-value drives both approval and cost. Crossing below 80% typically removes private mortgage insurance and unlocks better refinance terms, so a modest extra principal payment can pay for itself.
Frequently Asked Questions
What is loan-to-value ratio?
It is the loan amount as a percentage of the property's value. A lower ratio means more equity and less risk for the lender.
Why does loan-to-value matter?
Lenders use it to decide approval, interest rate, and whether mortgage insurance is required. A lower ratio generally earns better terms.
What is the 80% threshold?
At or below 80% loan-to-value, many lenders no longer require private mortgage insurance, because the equity cushion is considered sufficient.
How do I lower my loan-to-value ratio?
Pay down the loan balance, or benefit from a rise in the property's value. Both increase equity and reduce the ratio.
What property value should I use?
Use the appraised value for a new loan, or a current market estimate for an existing one. The cited home price benchmark gives a rough national reference.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 1 independent, dated source.
Methodology & Review
The loan-to-value ratio is the loan amount divided by the property value, expressed as a percentage. The complement is the equity share of the property's value.
Written by Ugo Candido · Last updated May 17, 2026.