Loan-to-Value Calculator
Inputs
Results update liveInterpretation
How Loan-to-Value works
Loan-to-value divides the total loan balance by the current property value you enter. It also shows simple equity before transaction costs.
Example
Key features
A realistic scenario showing how the calculation guides a practical decision.
Formula
LTV = total loan balance ÷ current property value × 100.
- Calculate LTV from entered property value and loan balance
- See simple equity before selling costs
- Flag values above 100% for review
- Clear exclusions for appraisals, lender rules, and PMI
Watch out
Common mistakes
- Use the value and balance a lender will actually review. Program limits, appraisals, liens, closing costs, and PMI rules can differ from this simple ratio.
FAQ
Frequently asked questions
How the calculation works and where its limits are.
What is Loan-to-Value (LTV) ratio and why does it matter to lenders?
Loan-to-Value (LTV) ratio measures the total mortgage loan balance as a percentage of the property's appraised value (Loan Amount / Appraised Value). Lenders use LTV to evaluate mortgage default risk and determine whether Private Mortgage Insurance (PMI) is required.
At what LTV ratio can I cancel Private Mortgage Insurance (PMI)?
Under the federal Homeowners Protection Act, homeowners can request PMI cancellation once the principal balance reaches 80% LTV of original value. Lenders are legally required to automatically terminate PMI once the loan reaches 78% LTV on the original amortization schedule.
What is Combined Loan-to-Value (CLTV)?
Combined LTV (CLTV) includes all mortgages and liens secured by the property (e.g. first mortgage plus home equity line of credit or HELOC) divided by total property value.
Is this LTV calculation an official home appraisal?
No. This calculator provides planning calculations based on the estimated property value you enter. Official LTV determination requires a professional licensed property appraisal ordered by the mortgage lender.
How can I lower my LTV ratio to refinance or drop PMI?
You can lower your LTV by making extra principal payments, waiting for local housing market price appreciation, or financing home improvements that increase the official appraised value.