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Finance Calc Kit
Real estate

Loan to Value Ratio Calculator

Calculate your loan-to-value (LTV) ratio, maximum loan amount based on target LTV, or minimum property value needed. Free online LTV calculator for mortgage and real estate planning.

Mortgage inputs

$
$

Loan-to-value ratio

80.0%

No PMI required (LTV at or below 80%)

Most conventional loans require 20% down to avoid private mortgage insurance.

Step-by-step calculation

Open to see the formula and substituted values.

  1. Loan-to-value formula

    LTV=Loan AmountProperty Value×100\text{LTV} = \frac{\text{Loan Amount}}{\text{Property Value}} \times 100

    $240,000.00 / $300,000.00 x 100 = 80.0%.

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How the loan-to-value ratio calculator works

The loan-to-value (LTV) ratio measures how much of a property's value is financed by a mortgage. Lenders use LTV to assess risk, set interest rates, and determine whether private mortgage insurance (PMI) is required. This calculator solves for LTV, loan amount, or minimum property value.

Once you know your LTV, estimate monthly payments with the mortgage calculator or check how much home equity you have with the home equity loan calculator. To estimate the monthly PMI payment when LTV exceeds 80%, use the PMI calculator.

Loan-to-value formula

LTV=Loan AmountProperty Value×100\text{LTV} = \frac{\text{Loan Amount}}{\text{Property Value}} \times 100

Property value is typically the appraised value or purchase price, whichever is lower. A lower LTV means more borrower equity and less lender risk.

Worked example: $240,000 loan on a $300,000 home

  1. Loan amount: $240,000
  2. Property value: $300,000
  3. LTV: ($240,000 / $300,000) x 100 = 80.0%
  4. PMI: At exactly 80% LTV with a conventional loan, PMI is typically not required.

The 80% LTV threshold and PMI

Most conventional mortgages require PMI when LTV exceeds 80%. PMI protects the lender if you default and adds to your monthly payment until you reach 20% equity. Putting 20% down on a $300,000 home means a $60,000 down payment and a $240,000 loan at 80% LTV.

Frequently asked questions

What LTV do lenders prefer?
Many conventional lenders prefer LTV at or below 80% to avoid PMI. FHA loans allow higher LTV with mortgage insurance, and VA loans may offer 100% financing for eligible borrowers.
What is the difference between LTV and CLTV?
LTV considers only the primary mortgage. Combined loan-to-value (CLTV) includes all liens, such as a second mortgage or home equity line of credit.
How do I lower my LTV?
Make a larger down payment, choose a less expensive property, pay down the loan principal, or wait for the property value to appreciate through a new appraisal.
When is PMI required?
For most conventional loans, PMI is required when LTV exceeds 80%. FHA loans have their own mortgage insurance rules regardless of down payment size.
Are the results stored?
No. All math runs in your browser and inputs sync to the page URL.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.