Loan to Value Calculator
Calculate loan-to-value ratio for mortgages and secured loans.
Loan-to-Value ratio is a key metric lenders use to assess mortgage risk — it determines your interest rate, whether you need private mortgage insurance, and sometimes whether you qualify at all. This calculator computes LTV from your loan amount and property value, with guidelines for common thresholds.
How to Calculate Loan-to-Value Ratio
- Enter the loan amount — the total amount you are borrowing (or the remaining mortgage balance for refinancing).
- Enter the property value — the current appraised or market value of the property.
- Click Calculate — the tool divides the loan by the property value and displays the LTV ratio as a percentage.
- Evaluate your position — lower LTV ratios (under 80%) typically qualify for better interest rates and avoid private mortgage insurance (PMI). Add a second mortgage or HELOC balance to see your combined LTV (CLTV), which lenders use for refinancing and equity lines.
Worked Examples
Buying a home
You're buying a $250,000 home with $50,000 down, so you borrow $200,000:
$200,000 ÷ $250,000 = 0.80 → 80% LTV
At exactly 80% you avoid PMI on a conventional loan. With only $25,000 down, LTV is 90% — you'd pay PMI of roughly $940–$2,800 per year on a $225,000 loan until you reach 80%.
Refinancing
Your remaining mortgage is $180,000 and the property now appraises at $300,000:
$180,000 ÷ $300,000 = 60% LTV
At 60% you're in the strongest refinance bracket. Most lenders cap cash-out refinances at 80% LTV, so you could pull out up to $60,000 while staying under the cap ($240,000 ÷ $300,000 = 80%).
Combined LTV with a HELOC
Same $180,000 mortgage plus a $45,000 HELOC on the $300,000 home:
($180,000 + $45,000) ÷ $300,000 = 75% CLTV
Most HELOC lenders allow a combined LTV of up to 85%, so this borrower still has room: 85% of $300,000 is $255,000, leaving $30,000 of additional borrowing capacity.
Maximum LTV by Loan Type
| Loan type | Typical max LTV | Notes |
|---|---|---|
| Conventional (no PMI) | 80% | 20% down — best rates, no mortgage insurance |
| Conventional 97 | 97% | 3% down for qualifying first-time buyers; PMI required |
| FHA | 96.5% | 3.5% down; mortgage insurance premium for the life of the loan in most cases |
| VA / USDA | 100% | No down payment for eligible veterans / rural buyers |
| Jumbo | 80–90% | Stricter above conforming limits; best pricing at ≤80% |
| Cash-out refinance | 80% | VA allows up to 100% for eligible borrowers |
| HELOC (combined) | 85% CLTV | First mortgage + line of credit together |
Limits vary by lender, credit score, and property type (investment properties and condos are usually capped lower). Use these as orientation, not a guarantee.