Loan-to-Value (LTV) Calculator
Calculate your loan-to-value ratio and home equity — key metrics lenders use to assess mortgage risk.
Results
What is it?
Loan-to-Value (LTV) is the ratio of your mortgage balance to the appraised value of the property, expressed as a percentage. Home equity is what you own outright.
How to use
Enter your current outstanding loan balance and the current market or appraised value of the property. The calculator shows your LTV ratio, equity in dollars, and equity as a percentage.
Example scenario
Loan of $180,000 on a property worth $250,000: LTV = 72%. Equity = $70,000 (28%). Because LTV is below 80%, the borrower can typically avoid Private Mortgage Insurance (PMI).
Pro tip
Once your LTV drops to 80% you can request PMI cancellation, saving hundreds per year. Lenders also offer better rates at LTV milestones of 80%, 75%, and 60%. Extra principal payments accelerate these thresholds.