Back to Finance

Loan-to-Value (LTV) Ratio Calculator

Measure leverage by comparing loan balance to property value to get LTV ratio.

Loan-to-Value (LTV) Ratio Calculator

Measure leverage by comparing loan balance to property value.

Guide

Lower LTV generally means better pricing and lower risk.

  • Common thresholds: 80% (conventional), 90–95% with mortgage insurance.
  • Re-appraisals and market changes can shift LTV materially.

Related Calculators

Mortgage and leverage

Mortgage Payment

Monthly payment details.

Home Affordability

Budget‑based price ceiling.

Rental Yield

Income return indicator.

Mortgage Points Impact

Effect of buying points.

Frequently Asked Questions

Comprehensive answers about LTV, leverage, and risk

What is Loan‑to‑Value (LTV)?

LTV measures leverage: loan balance divided by property value. A lower LTV indicates more equity and typically qualifies for better loan pricing.

Why does LTV matter to lenders?

LTV is a key credit risk indicator. Higher LTVs mean less borrower equity and higher default loss potential, prompting higher rates or mortgage insurance.

How is property value determined?

Usually via appraisal or automated valuation. In hot markets, lender‑accepted value may be capped—even if you agree to a higher purchase price.

What LTV qualifies for the best rates?

Conventional loans often price best at ≤80% LTV. Below 60–70% can qualify for additional discounts. Government‑backed loans have specific thresholds.

Does PMI go away?

Private mortgage insurance can be removed when LTV drops to ~80% through principal reduction or home value appreciation, subject to loan servicer rules.

How does a market downturn affect LTV?

If property values fall, LTV rises even without borrowing more. Negative equity can occur if values drop below loan balance—maintain cash buffers for downturns.

Is high LTV always bad?

High LTV increases risk and payment costs, but can be rational for short holding periods or high expected appreciation. Balance leverage with liquidity and risk tolerance.

What is CLTV or HCLTV?

Combined LTV (CLTV) includes all liens (first + seconds). High‑CLTV products may have stricter terms. HCLTV considers maximum possible draw on HELOCs.

Does LTV consider closing costs?

No. LTV is based on loan amount and value only. However, high closing costs still affect your overall cash invested and cash‑on‑cash returns.

How fast does LTV improve?

Amortization reduces the loan balance each payment; appreciation increases value. Together they lower LTV over time. Extra principal payments accelerate the effect.

Embed This Calculator

Add this calculator to your website or blog using the embed code below:

<div style="max-width: 600px; margin: 0 auto;"> <iframe src="https://mycalculating.com/category/finance/loan-to-value-ltv-ratio-calculator?embed=true" width="100%" height="600" style="border:1px solid #ccc; border-radius:8px;" loading="lazy" title="Loan To Value Ltv Ratio Calculator Calculator by MyCalculating.com" ></iframe> <p style="text-align:center; font-size:12px; margin-top:4px;"> <a href="https://mycalculating.com/category/finance/loan-to-value-ltv-ratio-calculator" target="_blank" rel="noopener"> Use full version on <strong>MyCalculating.com</strong> </a> </p> </div>
Open in New Tab

Loan-to-Value (LTV) Ratio Calculator

Measure leverage by comparing loan balance to property value to get LTV ratio.

How to use Loan-to-Value (LTV) Ratio Calculator

Step-by-step guide to using the Loan-to-Value (LTV) Ratio Calculator:

  1. Enter your values. Input the required values in the calculator form
  2. Calculate. The calculator will automatically compute and display your results
  3. Review results. Review the calculated results and any additional information provided

Frequently asked questions

How do I use the Loan-to-Value (LTV) Ratio Calculator?

Simply enter your values in the input fields and the calculator will automatically compute the results. The Loan-to-Value (LTV) Ratio Calculator is designed to be user-friendly and provide instant calculations.

Is the Loan-to-Value (LTV) Ratio Calculator free to use?

Yes, the Loan-to-Value (LTV) Ratio Calculator is completely free to use. No registration or payment is required.

Can I use this calculator on mobile devices?

Yes, the Loan-to-Value (LTV) Ratio Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.

Are the results from Loan-to-Value (LTV) Ratio Calculator accurate?

Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.