Loan-to-Value (LTV) Ratio Calculator
Calculate a loan-to-value (LTV) ratio from a loan amount and property value — LTV = loan ÷ value × 100. Shows down payment percent, home equity, PMI-required status (above 80% LTV) and a lender risk tier.
Input
The mortgage balance you owe or plan to borrow.
Appraised value or purchase price of the home.
Output
| Metric | Value |
|---|---|
| No data yet | |
Guides
The loan-to-value (LTV) ratio is the single number lenders lean on hardest when they price a mortgage. It compares how much you are borrowing to what the property is worth, and it decides whether you'll pay private mortgage insurance, what interest rate you're offered, and which loan programs you qualify for. This calculator works it out instantly from two numbers.
What is the LTV ratio?
LTV is the loan divided by the property's value, expressed as a percentage:
LTV % = (Loan Amount ÷ Property Value) × 100
A $180,000 loan on a $225,000 home is an 80% LTV — you're financing 80% of the value and putting 20% down. The lower the LTV, the more equity you hold and the less risk the lender carries, which translates into better rates.
How to use it
- Enter the loan amount — the mortgage balance you owe or plan to borrow.
- Enter the property value — the appraised value or purchase price.
The result updates as you type and shows four figures:
- LTV Ratio — loan ÷ value, as a percentage.
- Down Payment — the equity share of the value (
100% − LTV). - PMI Required — whether private mortgage insurance is likely (US conventional loans require it above 80% LTV).
- Risk Tier — a plain-language read on where your ratio sits with lenders.
Risk tiers
| LTV | Tier |
|---|---|
| ≤ 60% | Excellent — best rates, no PMI |
| ≤ 80% | Strong — no PMI required |
| ≤ 90% | Moderate — PMI required |
| ≤ 95% | Higher risk — PMI + higher rate |
| ≤ 100% | Maximum — limited to FHA/VA/USDA |
| > 100% | Underwater — loan exceeds property value |
When is PMI required?
On a conventional loan, private mortgage insurance kicks in when your LTV is above 80% — i.e. you put down less than 20%. It protects the lender, not you, and typically costs 0.3%–1.5% of the loan per year. Under the US Homeowners Protection Act, PMI automatically cancels once the balance reaches 78% LTV, and you can usually request removal at 80%.
What counts as a good LTV?
Anything at or below 80% is considered strong: no PMI, and access to the best conventional rates. Below 60% is excellent and gives you the widest choice of loan products and the sharpest pricing. Government-backed programs (FHA, VA, USDA) can go far higher — up to 96.5%–100% — but usually carry their own insurance or funding fees.
How is LTV different from a down payment?
They're two views of the same split. If your LTV is 90%, your down payment is 10% — they always add up to 100% of the property value. Paying down principal or a rising appraisal both lower your LTV over time.
Privacy
The calculation runs entirely in your browser. Your loan amount and property value are never sent to a server.