LTV Calculator: Loan-to-Value Ratio and PMI Line
What is my LTV? Enter the property value and the loan amount to see your loan-to-value ratio, your down payment and how far you are above the usual 80% line. For borrowing against equity, including second loans, use the home equity calculator.
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Formula
LTV = loan amount ÷ property value × 100down payment (equity) = property value − loan amountloan to pay down for 80% = loan amount − 0.80 × property value(zero if already at or below 80%)
The 80% line is a common US threshold for private mortgage insurance. Lenders and countries differ, so confirm with your lender.
Worked example
Property value 300,000 and a loan of 255,000:
- LTV is 255,000 ÷ 300,000 = 85%.
- Down payment is 300,000 − 255,000 = 45,000, or 15%.
- 80% of the value is 240,000, so paying the loan down by 15,000 reaches 80%.
When to use it
Use this page to see how a down payment or a loan offer looks to a lender, or when you will reach the point where mortgage insurance can be removed. For all loans on a home, including a second loan, or to see how much you could borrow, use the home equity calculator. The down payment calculator works from a price and percentage.
Second example
A property worth 300,000 with a 270,000 loan: LTV is 90%, the down payment is 30,000 (10%), and 80% of the value is 240,000, so the loan must fall by 30,000 to reach the 80% line.
Common mistakes
- Using the purchase price when the lender uses a lower appraised value.
- Forgetting that financed fees raise the loan.
- Assuming the 80% line applies everywhere; it is a common US convention.
Frequently asked questions
How do I calculate loan-to-value?
Divide the loan amount by the property value and multiply by 100. A 255,000 loan on a 300,000 home is 255,000 ÷ 300,000 = 85%.
What LTV avoids PMI?
In many markets, lenders ask for private mortgage insurance when LTV is above 80%, meaning a down payment under 20%. Rules differ by lender, loan type and country, so check yours.
How much do I need to pay down to reach 80% LTV?
Subtract 80% of the value from the loan. On a 300,000 home, 80% is 240,000, so a 255,000 loan needs 15,000 of extra payment or value growth.
Can LTV be over 100%?
Yes. If you owe more than the property is worth, for example 330,000 on a 300,000 home, LTV is 110% and the property has negative equity.
How do I calculate LTV in Excel?
Use =loan/value, formatted as a percentage. A 270,000 loan on a 300,000 property is =270000/300000, or 90%, which means a 10% down payment.
What is a good loan-to-value ratio?
Lower is safer. Many lenders offer their best terms at 80% or below, and some allow 90 to 95% with extra cost. These limits differ by lender, loan type and country, so check your own.
What is the largest loan I can get at a given LTV?
Multiply the value by the maximum LTV. At 95% LTV on a 400,000 home the loan can be up to 380,000, so the down payment is at least 20,000, or 5%.