Loan-to-Value Ratio Calculator
LTV ratio for mortgage applications. Flags whether PMI is required and shows the down payment needed for 80%, 90%, 95% thresholds.
About the Loan-to-Value Ratio Calculator
The Loan-to-Value Ratio Calculator tells you the LTV percentage on any mortgage - the loan amount divided by the property value. LTV determines mortgage rate tier, whether private mortgage insurance (PMI) is required, and your overall risk profile to the lender. It is one of the three numbers (alongside credit score and DTI) that lenders use to price your loan.
The calculator also handles combined LTV (CLTV) when you have a HELOC or second mortgage stacked on top of a primary, and reverse-solves for the down payment needed to hit any LTV threshold you target. Hitting 80% LTV eliminates PMI (saving 0.3-1.5% annually on the loan amount); hitting 75% or 70% can unlock rate-tier improvements at most lenders.
Common use cases
- Calculate the down payment needed to avoid PMI
- See whether your current home equity supports a HELOC
- Determine if appreciation has dropped your LTV below 78% so you can request PMI removal
- Compare LTV across multiple loan scenarios when shopping mortgages
Tips for accurate results
PMI is required by federal law until your LTV reaches 78% based on original purchase price - but you can usually request earlier removal at 80% LTV by current appraisal. If your home has appreciated 10-20% since purchase, this is worth asking for: an appraisal costs ~$500 and PMI savings on a $400k mortgage at 0.5% PMI are $2,000/year. Most homeowners forget to ask for removal even when they qualify.
Privacy & data handling
The Loan-to-Value Ratio Calculator runs entirely in your browser. Nothing you enter is uploaded, logged, or shared with third parties - the math happens locally and your inputs disappear when you close the tab. There is no signup, no email collection, and no daily-use limit.
What is loan-to-value ratio?
LTV = mortgage amount ÷ property value, expressed as a percentage. On a $400k home with $80k down, the loan is $320k and LTV is 80%. Lower LTV means more skin in the game and lower risk to the lender - which usually translates to better mortgage rates and no PMI requirement.
Why does LTV matter?
It determines three things: (1) whether you need private mortgage insurance - typically required above 80% LTV; (2) your interest rate - most lenders price in tiers at 80%, 90%, 95% LTV; (3) loan eligibility - conventional loans cap at 95-97% LTV, FHA at 96.5%, VA up to 100%, jumbo loans often cap at 90%.
What's the magic 80% number?
At 80% LTV (20% down), private mortgage insurance is no longer required. PMI typically costs 0.3-1.5% of loan amount annually, so on a $400k loan you're saving $1,200-$6,000/year by hitting 80%. By federal law, PMI auto-cancels when LTV reaches 78% based on original purchase price.
Does the home's appreciation reduce LTV?
Yes - LTV is based on current value, not purchase price. If your home appreciates from $400k to $500k while you still owe $320k, LTV drops from 80% to 64%. Some lenders let you re-appraise and drop PMI early on that basis; ask your servicer about "PMI removal request" after major appreciation.
What about a HELOC or second mortgage?
Those count toward combined LTV (CLTV) - total of all liens ÷ property value. Lenders typically cap CLTV at 80-90%. So if your primary mortgage is at 75% LTV and you want to add a HELOC, you can only borrow another 5-15% before hitting the CLTV ceiling. The calculator handles both LTV and CLTV.
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