Loan-to-value calculator
Estimate loan-to-value ratio and equity from home value and loan amount.
What this calculator covers
Use this loan-to-value calculator to estimate how much of a home's value is still financed and how much equity remains.
The walkthrough keeps LTV and equity together so refinance, PMI, and sale scenarios are easier to compare.
Frequently asked questions
- What LTV ratio is typically required to avoid PMI?
- Most conventional lenders require private mortgage insurance when LTV exceeds 80 percent, meaning equity must be at least 20 percent of the home's value. Thresholds can vary by lender and loan type, so check with your servicer for the exact requirement.
- How does LTV affect refinancing eligibility?
- Lenders generally set maximum LTV limits for refinance programs, and a lower LTV can also qualify you for better rate pricing. The specific limits vary by loan program and lender, so current guidelines should be confirmed directly.
- Does LTV use the appraised value or the purchase price?
- In most mortgage transactions lenders use the lower of the appraised value and the purchase price when calculating LTV. This calculator accepts whatever home value you enter, so use the appraised or contracted figure that applies to your situation.
- How do I reduce my LTV over time?
- LTV falls as you pay down the loan balance and as the home appreciates in value. Making extra principal payments, completing a mortgage recast, or waiting for appreciation are the main ways to bring LTV below a target threshold.
Tool
Run the calculation
Result
RESULT · LOAN TO VALUE
â„–045
Primary result
70%
$350,000.00 against $500,000.00 equals 70% loan-to-value, leaving $150,000.00 of equity or 30% of the home's value.
- Loan-to-value
- 70%
- Equity amount
- $150,000.00
- Equity percent
- 30%
Step-by-step solution
- 1.Divide the loan amount by the home value to calculate an LTV of 70%.
- 2.Subtract the loan amount from the home value to estimate $150,000.00 of equity.
- 3.Divide the equity amount by the home value to express ownership as 30% equity.
Walkthrough
Visual walkthrough
Loan-to-value compares the loan balance with the home value so leverage and equity stay visible in the same frame.
01
Set the leverage ratio
$350,000.00 ÷ $500,000.00 = 70%
LTV shows how much of the property value is still financed.
70% LTV
02
Calculate the equity dollar gap
$500,000.00 - $350,000.00 = $150,000.00
The remaining value after paying off the loan is the homeowner's equity position.
$150,000.00 equity
03
Express equity as a percent too
Looking at both LTV and equity percent helps compare refinance, PMI, and sale scenarios more quickly.
30% equity