Free loan-to-value calculator
Find your loan-to-value ratio in two seconds. Enter your loan amount and property value — add a second mortgage or HELOC for combined LTV. The calculator returns your LTV, CLTV, home equity, and exactly how much to pay down to reach 80% and drop PMI — updated live, as you type.
On this page15 sections
Estimates only, based on the values you enter. Not financial advice.
Results are estimates. Consult a professional.
What is a loan-to-value (LTV) ratio?
Your loan-to-value ratio is the amount you are borrowing divided by the appraised value of the property, written as a percentage. It is the single number a mortgage lender uses to gauge how much skin you have in the deal: a low LTV means a large down payment and plenty of equity, while a high LTV means a small down payment and more risk for the lender. Borrow $240,000 against a $300,000 home and your LTV is 80% — the threshold that this loan-to-value calculator flags the moment you enter your loan amount and property value.
LTV vs. equity — two views of the same line
LTV and equity are mirror images: a 90% LTV is the same thing as 10% equity, and an 80% LTV is 20% equity. Lenders talk in LTV because it expresses their exposure; homeowners tend to think in equity because it expresses their stake. The calculator shows both, so whichever side of the table you sit on, the number you care about is on screen.
How to calculate your loan-to-value ratio
Calculating LTV is a three-step process you can do in your head for a rough figure, or let the calculator do exactly:
- Find the loan amount. On a purchase, that is the price minus your down payment. On an existing mortgage, it is the current balance you still owe.
- Find the property value. Use the appraised value, or the purchase price if it is lower — lenders always use the smaller of the two.
- Divide loan by value and multiply by 100. A $150,000 loan on a $200,000 home is 150,000 ÷ 200,000 = 0.75, or a 75% LTV. The calculator above does this live as you type.
The inputs explained: loan amount, value, and second liens
Three inputs drive every LTV figure. Getting each one right — especially which value to use — is what separates an accurate ratio from a misleading one.
A worked example using the loan-to-value calculator
Dana is buying a $300,000 home and weighing two down payments. She wants to know which one clears the 80% LTV line that drops private mortgage insurance. Here is how she uses the calculator — loan first, then value, then the ratio.
Step 1 — Enter the loan amount and value
Dana plans a $30,000 (10%) down payment, leaving a $270,000 loan against the $300,000 appraised value. She enters both figures.
| Input | Value |
|---|---|
| Appraised value | $300,000 |
| Down payment (10%) | $30,000 |
| Loan amount | $270,000 |
Step 1: a $270,000 loan on a $300,000 home.
Step 2 — Read the ratio
The calculator divides 270,000 by 300,000 and multiplies by 100: a 90% LTV, which means 10% equity. Because that is above 80%, the result flags that PMI will apply.
Step 3 — Compare a bigger down payment
Dana re-runs it with a $60,000 (20%) down payment. The loan drops to $240,000 and the LTV falls to exactly 80% — no PMI, and access to better pricing.
Now see where each number lands. Dana's two scenarios — 90% and 80% — sit on opposite sides of the most important line in mortgage lending. The next section is the full threshold table that shows exactly what each LTV band unlocks.
LTV thresholds and what each one means
LTV is a series of cliffs, not a smooth slope. A few specific percentages change what you qualify for and what you pay. These are the thresholds most calculator competitors leave off the page — and the ones worth memorizing.
| LTV | What it unlocks |
|---|---|
| 60% or below | The best available mortgage rates — lenders reserve their lowest pricing for the lowest-risk borrowers. |
| 80% | No private mortgage insurance on a conventional loan. The classic '20% down' target. |
| 78% | Lenders must automatically cancel PMI once your balance reaches 78% of the original value (you can request removal at 80%). |
| 90% | Conventional financing is still available, but with PMI and a rate add-on. |
| 96.5% | The maximum LTV on an FHA loan — a 3.5% down payment. |
| 97% | The maximum LTV on a conventional loan (3% down) under Fannie Mae HomeReady / Freddie Mac Home Possible. |
| 100% | Allowed on VA and USDA loans — zero down for eligible borrowers. |
Sources: Fannie Mae / Freddie Mac LTV limits, FHA handbook, and the Homeowners Protection Act (PMI cancellation at 78%/80%).
How your LTV affects your mortgage rate and PMI
Lenders price risk, and LTV is their primary measure of it. A lower LTV means you have more equity to lose before they do, so they reward it with cheaper terms in two ways at once:
- Interest rate. Fannie Mae and Freddie Mac apply loan-level price adjustments that get steeper as LTV rises. Crossing from above 80% to below it typically earns a lower rate; to fully avoid an add-on, the target rises to about 75% LTV (25% equity).
- PMI. Above 80% LTV on a conventional loan you pay private mortgage insurance, usually 0.3%–1.5% of the loan per year. On a $300,000 loan that is roughly $75–$375 a month — money that protects the lender, not you, and disappears the moment your LTV reaches 80%.
The two effects compound: a high-LTV borrower pays a higher rate and a PMI premium on top. That is why moving even a few percentage points of LTV — through a larger down payment or extra principal — can change the total cost of a mortgage by tens of thousands of dollars. Pair this with a mortgage-with-PMI calculator to see the dollar impact on your payment.
What is combined loan-to-value (CLTV)?
Combined loan-to-value (CLTV) adds every loan secured by the property — your first mortgage plus any second mortgage, home equity loan, or HELOC — and divides the total by the home's value. Where LTV looks at one loan, CLTV looks at all of them, which is the number that matters when you take out a HELOC or a piggyback second.
Example: a $240,000 first mortgage and a $40,000 HELOC on a $400,000 home is a 60% LTV but a 70% CLTV — (240,000 + 40,000) ÷ 400,000. Most lenders cap CLTV at 80%–90% for a home equity line, so CLTV, not LTV, is usually what limits how much you can borrow against your equity. Enter a second loan in the calculator and it returns the CLTV alongside your LTV.
What is a good loan-to-value ratio?
As a rule, 80% or lower is the sweet spot: at or below 80% LTV you avoid PMI on a conventional loan and qualify for competitive rates, and below 60% you reach the best pricing tier. Above 80% you can still get a loan — through FHA, VA, USDA, or a conventional 97% program — but you pay for the higher risk with insurance and rate add-ons.
That said, the "best" LTV is the one that gets you into the right home at a total cost you can afford. If reaching 80% means renting three more years while prices climb, a 90% LTV with PMI you cancel later may be the smarter move. Use the down-payment calculator and house-affordability calculator to weigh the trade-off in dollars, not just percentages.
How to lower your LTV
LTV moves through the two numbers in the ratio — the loan on top and the value on the bottom. Four practical levers:
- Make a larger down payment. The most direct lever on a purchase — every extra dollar down is a dollar less loan, lowering LTV immediately.
- Pay down principal. On an existing mortgage, each payment chips the balance and lowers LTV over time; extra principal payments accelerate it toward the 80%/78% PMI-removal line.
- Wait for appreciation. A rising property value lowers LTV even if the loan does not change — a refinance appraisal can confirm the higher value and drop you under 80%.
- Buy a less expensive home. A lower price for the same down payment means a smaller loan as a share of value — the simplest way to start under 80%.
Once your LTV crosses 80% through any of these, request PMI removal in writing — lenders must cancel automatically at 78% but you can ask at 80%. Pair this with a mortgage calculator to see how extra principal reshapes the timeline.
Data sources and methodology
LTV thresholds and loan limits come from the agencies that set them: Fannie Mae and Freddie Mac (conventional 97% LTV programs and loan-level price adjustments), the FHA Single Family Housing Policy Handbook (96.5% maximum LTV), and the VA and USDA loan programs (100% LTV). PMI cancellation at 78%/80% LTV is set by the federal Homeowners Protection Act of 1998. The calculator uses the standard identity loan ÷ value × 100 and the lower of appraised value or purchase price as the denominator.
Consumer Financial Protection Bureau — Homeowners Protection Act / PMI cancellation rules.Frequently asked questions about the free loan-to-value calculator
About this loan-to-value calculator
This loan-to-value calculator runs entirely in your browser. Every figure you enter stays on your device — nothing is sent to a server, logged, or shared. It divides your loan amount by the property value for the LTV, adds any second lien for the combined LTV, and shows the principal you'd need to pay down to reach the 80% PMI-removal threshold, updating instantly as you type.
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