finance ToolUpdated 2026-09-22
Loan to Value Calculator
Your Loan-to-Value (LTV) ratio compares your mortgage loan balance against the appraised market value of your property. Enter your loan amount and property value to evaluate your equity position.
Financial & Loan Estimation Notice: Calculations provided are estimates for personal educational planning. Actual loan terms, payment amounts, taxes, and interest charges will vary based on lender underwriting, individual creditworthiness, local statutory regulations, and market conditions.
Formula & Mathematical Methodology
LTV Ratio = (Loan Amount ÷ Property Value) × 100
Divide the outstanding or requested loan amount by the current appraised property value and multiply by 100.
How to Use This Loan to Value Calculator
- Enter the mortgage loan balance or requested borrowing amount.
- Enter the current appraised home market value.
- Calculate your LTV ratio and built-in home equity percentage.
Step-by-Step Worked Example
Scenario: $320,000 loan on a $400,000 home
1. Divide loan by value: $320,000 ÷ $400,000 = 0.80
2. Convert to percentage: 0.80 × 100 = 80.0%
3. Equity percentage: 100% - 80% = 20.0% home equity
Final Calculated Result: 80.0% LTV (PMI threshold reached)
What Does Your Result Mean?
An LTV of 80% or lower generally eliminates the requirement for Private Mortgage Insurance (PMI) on conventional loans.
Common Practical Applications:
- Checking PMI cancellation eligibility
- Cash-out refinancing feasibility
- Home equity loan (HELOC) borrowing limits
Important Limitations & Assumptions:
- Subject to formal professional appraisal by a certified appraiser.
Frequently Asked Questions
At what LTV can I cancel PMI?
You can request PMI cancellation when your mortgage principal balance reaches 80% LTV, and lenders must automatically cancel it at 78% LTV.
What is a good LTV for refinancing?
Most lenders offer their best interest rates and terms when your LTV is 80% or below.
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