About the Loan to Value Calculator
Loan-to-value, or LTV, is the size of a loan as a percentage of the value of the property that secures it. It is one of the main numbers lenders use to set your interest rate and decide whether you need mortgage insurance. A lower LTV means more of the property is yours and less is the lender's, so the loan is safer for them. This calculator divides your loan by the property value to give the LTV, adds any second loan or home equity line for the combined LTV, and shows your equity in money and percent. It also tells you how much you would need to pay down to reach the common 80 percent mark.
Updated October 2026
How to use the Loan to Value Calculator
- 1Enter the mortgage or loan amount.
- 2Enter the property value, using the lower of price and appraisal when buying.
- 3Optional: enter other loans secured on the property.
- 4Read the LTV, the combined LTV and a plain description.
- 5Check the amount to pay down to reach 80 percent.
Worked example
You buy a 300,000 home with a 60,000 down payment and a 240,000 mortgage. The LTV is 80 percent and your equity is 60,000. If you later take a 30,000 home equity line, the CLTV becomes 90 percent and your equity shrinks to 30,000. To bring the combined balance back to 80 percent, which would be 240,000, you would have to pay down 30,000.
If you are buying, the LTV you see here is a good guide to the cash you need. A 90 percent LTV on a 300,000 home means a 30,000 down payment, but also probably mortgage insurance and a higher rate than an 80 percent loan. Try a few down payments to see the tradeoff. When refinancing, lenders order a fresh valuation, so check recent sales of similar homes near you before you assume your home is worth the figure you typed in.
Lowering your LTV
- Make a bigger down payment.
- Pay extra principal on the loan.
- Wait for the property value to rise.
- Improve the home to raise its value.
- Avoid borrowing a second loan against the same property.
LTV for other loans
Car lenders use LTV too, comparing the loan with the car's value, and a loan above 100 percent is common on new cars because of fees and fast depreciation. Business lenders use it for commercial property and equipment. The calculation is the same: the loan, plus any other loans secured on the asset, divided by what the asset is worth.
Related tools
The Mortgage Calculator shows monthly payments, the HELOC Calculator and Home Equity Loan Calculator model borrowing against equity, the Down Payment Calculator plans savings and the Refinance Calculator tests a new loan.
Features
- LTV and combined LTV
- Equity in money and percent
- Amount to pay down to reach 80%
- Plain-language band
- Works for home, car and secured loans
- Any currency
Frequently asked questions
How do I calculate LTV?
Divide the loan by the property value and multiply by 100. A 240,000 loan on a 300,000 property is an LTV of 80 percent.
What is a good LTV?
Lenders prefer 80 percent or lower, which usually avoids private mortgage insurance and gets better rates. Many loans go up to 95 percent or more, at a higher cost. The lower the better for you, too, since it means more equity.
What is combined loan-to-value?
It adds all loans secured on the property, such as a second mortgage or a HELOC, to the first loan before dividing by the value. Lenders use it when you want to borrow more against a home that already has a mortgage.
Why does the 80 percent mark matter?
In the US, conventional lenders typically require private mortgage insurance when the LTV is over 80 percent, and let you ask to remove it once you reach 80 percent. In other countries, rates and product choices also improve at certain LTV tiers.
What is negative equity?
When the loan is bigger than the property's value, so the LTV is over 100 percent. It can happen after a price fall and makes selling or refinancing hard.
Is the value the price or the appraisal?
For a purchase, lenders use the lower of the price and the appraised value. For a refinance, they use the appraisal. An online estimate may differ from either.