Loan to Value Calculator
LTV percent from loan and home value, with down payment and 80% line.
What it does
Loan to value compares what you borrow with what the property is worth. Lenders read it as a risk gauge: a lower percent means more owner equity behind the loan, while a higher percent means thinner cover if prices slip.
The tool above needs two numbers only. Type the loan and the value, and it returns the LTV percent plus the implied down payment and the loan size that would land exactly at 80%. Those three figures answer most shopping questions in one pass.
The 80% line matters in the US because conventional loans often drop private mortgage insurance at or below it. Government programs use their own bands, and rate sheets commonly price higher LTV loans with a higher rate, so small moves across a band can change monthly cost.
This page stays narrow on purpose. It does not estimate payments, taxes, insurance, or closing costs. It gives the collateral ratio that frames those later steps, with sources from housing agencies below.
How to use
- Enter the loan amount you plan to borrow.
- Enter the appraised value or purchase price.
- Read LTV first, then the down payment and the 80% loan line.
- Compare your LTV with 80% and 90% bands in the table.
- Re run with a larger down to see the ratio fall.
Formula
- loan
- Amount borrowed, secured by the property.
- value
- Appraised value or purchase price, in the same currency.
- LTV
- Percent share of value covered by debt.
Lenders use appraised value or purchase price, whichever is lower for a new loan. A second loan or credit line counts in combined LTV, which this page does not add. Rounding is to one decimal in the tool.
Worked example
Example: 240,000 loan on a 300,000 home
Loan 240,000, property value 300,000.
- Divide loan by value: 240,000 / 300,000 = 0.8.
- Times 100 gives 80.0 % LTV.
- Down: 300,000 - 240,000 = $60,000.00.
- 80% line: 300,000 x 0.8 = $240,000.00.
- Tool shows 80.0 %, $60,000.00 down, $240,000.00 at 80%.
- At 80.0 % the loan sits at the usual line where many lenders stop asking for mortgage insurance.
Reference table
| LTV | Down share | Common read |
|---|---|---|
| 60.0 % | 40% | Strong cover, wide loan choice |
| 80.0 % | 20% | Usual line where insurance often stops |
| 90.0 % | 10% | Insurance common, rates higher |
| 95.0 % | 5% | Thin cover, program limits apply |
| 100.0 % | 0% | Full value borrowed, highest risk band |
Limits
- Uses one loan only. Second liens need a combined LTV pass.
- Value is a single input. It does not model appraisal gaps.
- Ignores rate, term, taxes, insurance, and fees.
- Bands differ by program. FHA, VA, and conventional rules are not the same.
Common mistakes
- Dividing value by loan instead of loan by value.
- Using list price where the lender will use the lower appraised value.
- Forgetting a second loan when judging real cover.
- Reading LTV as a payment estimate.
- Rounding the percent early and missing a band edge.
Try it yourself
Quick checks. Answers sit tucked under each question.
Loan 180,000 on value 200,000?
90.0 %, down $20,000.00, 80% line $160,000.00.
Loan 150,000 on value 200,000?
75.0 %, down $50,000.00 (200,000 - 150,000).
Questions
How do I calculate LTV?
Divide the loan by the appraised value and multiply by 100. A 240,000 loan on a 300,000 home is 80.0%.
How do I get the down payment from LTV?
Value minus loan. On a 300,000 home with a 240,000 loan, the down is $60,000.00.
Does a high LTV mean mortgage insurance?
Often yes. Above 80% many conventional loans add private mortgage insurance until the balance drops.
What is the 80% loan line?
The loan at exactly 80% of value. For a 300,000 home it is $240,000.00.
How can I lower my LTV?
Refinance, pay down principal, or a higher appraisal. Each lowers the ratio.
Does LTV tell me the monthly payment?
No. It ignores rate, term, taxes, insurance, and fees. It measures collateral cover only.