Loan-to-Value (LTV) Calculator

Loan-to-value is the loan amount divided by the property value, shown as a percent. A 240,000 loan on a 300,000 home is an 80 percent LTV, which means the loan covers 80 percent of the value and your equity covers the other 20 percent.

Lenders use LTV to gauge risk. A lower LTV means more equity behind the loan, so the lender is more likely to recover the balance in a forced sale, which usually earns you a better interest rate. An LTV above 80 percent often triggers private mortgage insurance on a conventional loan.

The down payment is the property value minus the loan amount, and it is the exact mirror of the LTV. An 80 percent LTV leaves a 20 percent down payment, so on a 300,000 home you would put down 60,000. Raise the deposit and the LTV falls by the same share.

Each tab needs a different pair. The LTV ratio tab needs the loan and the value, the Loan amount tab needs the value and the LTV, and the Property value tab needs the loan and the LTV. The tool fills in the remaining figures from those two.

Many borrowers aim for 80 percent or lower to skip mortgage insurance and unlock stronger rates. Some programs, such as certain FHA or VA loans, allow much higher LTVs, but a higher ratio means a larger loan, less equity, and more interest paid over time.

Lenders base LTV on the lower of the purchase price and the appraised value. If a home appraises below the agreed price, the lender uses the appraisal, which can push your effective LTV higher and require a bigger down payment.

No. It uses the raw loan amount and property value only. Closing costs, points, and prepaid items are separate from LTV, so budget for them on top of the down payment this calculator shows.

LTV counts only the primary mortgage against the value. Combined loan-to-value (CLTV) adds every lien, such as a second mortgage or a home equity line, over the same value. This tool computes LTV for a single loan, so add other balances yourself for CLTV.

Yes, the math runs entirely in your browser and nothing is sent to a server. The figures are precise arithmetic, but they are a planning estimate: your lender's final LTV depends on their appraisal and how they round.