LTV (Loan-to-Value) Calculator

Compute the loan-to-property-value ratio — LTV = loan amount ÷ property value × 100%. Includes a two-way solver, a two-scenario down-payment comparator, and a running-LTV tracker toward 80%.

Estimates, not professional advice. This calculator’s results are mathematical computations for early planning — not a loan offer, not financial advice, and not a substitute for consulting a licensed professional.

Scope: this is a generic LTV calculator (standard, general-purpose). Different from our UK mortgage calculator (UK-specific: £, SDLT), boat loan calculator (boat niche), and our HELOC calculator and home equity loan calculator — both of which use CLTV (combined loan-to-value), not LTV.

Basic LTV

Enter the loan amount and property value (purchase price or appraisal result) to get the LTV ratio with its interpretation band.

Methodology note: LTV is computed as (loan ÷ property value) × 100%. The interpretation bands (80%, 97%, 100%) are general guides, not hard rules — actual thresholds for mortgage insurance (PMI/MIP) vary by program, lender, and jurisdiction. The figures here are mathematical estimates, not professional financial advice.

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Frequently asked questions about LTV

What is the LTV (loan-to-value) ratio?

The LTV (loan-to-value) ratio compares the loan amount to the property value, expressed as a percent. Formula: LTV = (loan amount ÷ property value) × 100%. Example: a $400,000 loan on a $500,000 property gives 80% LTV, because 400,000 ÷ 500,000 × 100% = 80%.

How do you calculate LTV step by step?

Step 1: determine the loan amount (principal debt). Step 2: determine the property value (purchase price or appraisal result — see the FAQ below). Step 3: divide the loan by the property value, then multiply by 100%. Example: a 10% down payment on a $500,000 property means a $450,000 loan, so LTV = 450,000 ÷ 500,000 × 100% = 90%. The calculator above shows the same steps for your numbers.

What is the difference between LTV and CLTV (combined loan-to-value)?

LTV uses a single loan divided by the property value. CLTV (combined loan-to-value) sums ALL loans secured by the same property — e.g. a first mortgage plus a HELOC or home equity loan — then divides by the property value. They are different: this calculator computes standard LTV. For CLTV, use the HELOC calculator or home equity loan calculator on this site.

Why is the 80% figure often mentioned in LTV discussions?

80% is a common benchmark on conventional mortgages: LTV above 80% generally requires mortgage insurance (PMI), while LTV at or below 80% generally does not. Borrowers can generally request PMI cancellation when the balance reaches 80% of the original value, and automatic termination applies at 78% under applicable rules. This is a general guide as of October 9, 2026, not a hard rule — actual thresholds vary by program and lender. Government program loans use different schemes (e.g. FHA loans use MIP, not PMI).

Which property value is used: purchase price or appraisal result?

Common lender practice is to use the LOWER of the purchase price and the appraisal result (independent valuation). If the appraisal is lower than the purchase price, LTV is computed from the appraisal value — so effective LTV can be higher than initially estimated and the required down payment increases. For an early estimate before appraisal, using the agreed purchase price is a reasonable approach.

Can LTV exceed 100%? What does it mean?

Yes. LTV above 100% means the loan amount exceeds the property value — a condition called negative equity or underwater. Example: a $450,000 balance on a property now worth $400,000 gives 112.50% LTV. This generally happens when property values fall after purchase. The “Running LTV” mode above computes this position from the remaining balance and current value.

Is this calculator the same as the UK mortgage or boat loan calculator on this site?

No. This calculator computes generic, general-purpose standard LTV. The UK mortgage calculator on this site is UK-specific (pound currency, SDLT duty, and local schemes), while the boat loan calculator computes LTV as part of boat financing (marine survey, trade-in, and typical boat terms). For mortgage insurance cost details, see the mortgage insurance lab calculator on this site.

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