Loan-to-Value (LTV) Calculator
The Ratio That Decides Whether You Pay for Mortgage Insurance
Loan-to-value is the single number underwriters lean on most heavily when pricing risk on a mortgage, because it measures the lender's exposure directly: how much is borrowed against how much the collateral is actually worth. Cross a specific LTV threshold and the loan terms change — mortgage insurance kicks in, rates shift, or the loan program itself becomes unavailable. This calculator works the ratio in both directions.
The Formula
Finding the LTV from a known loan and property value:
Finding the maximum loan a target LTV allows:
Where This Calculation Matters
- Avoiding private mortgage insurance — conventional loans above 80% LTV typically require PMI, an added monthly cost that disappears once the balance is paid down below that line.
- Sizing a down payment — working backward from a target LTV tells you exactly how much loan you can request, and by extension how large a down payment you need to put down.
- Refinance eligibility — many refinance and cash-out programs cap the resulting LTV, making this the first check before applying.
- Combined LTV on second liens — a HELOC or second mortgage stacked on top of a first mortgage is evaluated against a combined LTV limit, usually higher than the first-lien-only limit.
Common LTV Thresholds
| LTV | Typical significance |
|---|---|
| 80% or below | No PMI required on most conventional loans |
| 90% | Common minimum down payment threshold for conventional financing (10% down) |
| 96.5% | FHA loan minimum down payment threshold (3.5% down) |
| 100% | No equity cushion — loan amount equals full property value |
Specific PMI and program thresholds vary by lender and loan type — confirm the exact cutoff with your lender before relying on any single figure.
How to Use This Calculator
- Choose "Calculate LTV" or "Calculate Max Loan" from the mode selector.
- For LTV: enter Loan Amount and Property Value.
- For max loan: enter Property Value and your Target LTV (%).
- Select Calculate to see the resulting ratio or loan amount.
Related Calculations
Once you know your LTV, check available borrowing capacity with the HELOC Calculator, or see how it affects a refinance using the Cash-out Refinance Calculator.