Loan-to-Value Ratio Calculator
Calculate loan-to-value ratio for mortgages and loans
About this calculator
The Loan-to-Value (LTV) Ratio Calculator helps you determine what percentage of a property's value you're borrowing. This crucial financial metric compares your loan amount to the property's appraised value or purchase price. Lenders use LTV ratios to assess risk and determine loan terms, interest rates, and whether private mortgage insurance is required. Understanding your LTV ratio is essential for mortgage approval, refinancing decisions, and evaluating your home equity position.
How to use
Enter the total loan amount you're borrowing and the current market value or purchase price of the property. Click calculate to instantly see your LTV ratio as a percentage. The calculator will show you exactly how much of the property value you're financing versus your down payment contribution.
Frequently asked questions
What is a good loan-to-value ratio?
Most lenders prefer LTV ratios of 80% or lower. Higher ratios may require private mortgage insurance and result in higher interest rates.
How does LTV ratio affect my mortgage?
Lower LTV ratios typically qualify for better interest rates, lower fees, and may eliminate the need for mortgage insurance.
Can I calculate LTV for refinancing?
Yes, use your new loan amount and current home value. This helps determine if you qualify for refinancing without mortgage insurance.