Loan-to-Value (LTV) Calculator

Loan-to-value (LTV) shows how much you are borrowing compared with a home's value. Calculate it with: LTV = Loan Amount ÷ Property Value × 100. Lower LTV usually improves loan approval odds, interest rates, and PMI outcomes, while higher LTV increases lender risk and borrower costs.

A loan-to-value calculator measures the percentage of a property's value financed by debt. Lenders use LTV to estimate risk when approving mortgages, refinance applications, home equity loans, and many commercial real estate loans. If the property value is $400,000 and the loan is $320,000, the LTV is 80%. That means the lender is financing 80% of the property, while your equity or down payment covers the rest.

In real-world underwriting, LTV directly affects loan terms. Borrowers with a lower LTV often qualify for better rates, lower fees, and fewer restrictions. A higher LTV can trigger private mortgage insurance, stricter debt-to-income checks, larger reserve requirements, or even a loan denial if lender limits are exceeded. Investors also use LTV to compare leverage across deals and manage downside risk.

This loan-to-value calculator helps you test financing scenarios before speaking with a lender. You can estimate your current LTV, compare it with a target limit, and understand how far above or below that limit your loan amount sits. Using an LTV calculatorbefore making an offer can help you choose a safer leverage level and avoid surprises during appraisal and underwriting.

1. Enter the total loan amount you plan to borrow.
2. Enter the property value (purchase price or appraised value, depending on your use case).
3. Add your down payment and expected closing costs for cash planning.
4. Set a target max LTV, such as 80% for many conventional loan scenarios.
5. Click Calculate to view LTV, cash to close, and your loan gap to the target.
6. Adjust inputs to compare multiple financing options before applying.

LTV (%) = (Loan Amount ÷ Property Value) × 100

• Loan Amount: the principal borrowed from the lender.
• Property Value: usually the lower of purchase price or appraised value.
• Multiply by 100 to convert the ratio into a percentage.
• Lower percentages mean more borrower equity and generally less lender risk.

Loan-to-Value (LTV)

This is the core risk metric lenders review. It shows what share of the property's value is financed and influences eligibility, rates, and PMI requirements.

Total Cash to Close

Down payment plus estimated closing costs. This helps you plan liquidity needs beyond just the lender's loan amount.

Max Loan at Target LTV

The highest loan size allowed at your chosen LTV cap. It is useful for estimating the borrowing ceiling before underwriting.

Loan Gap to Target

The difference between your current loan and the max loan at your target LTV. A negative value suggests you need to borrow less or increase equity.

Use these inputs:

• Loan amount: $320,000
• Property value: $400,000
• Down payment: $80,000
• Closing costs: $9,000
• Target max LTV: 80%

Step 1: LTV = ($320,000 ÷ $400,000) × 100 = 80%.

Step 2: Cash to close = $80,000 + $9,000 = $89,000.

Step 3: Max loan at 80% LTV = $400,000 × 0.80 = $320,000.

Final result: the loan exactly matches an 80% LTV target, so the loan gap is $0.

Outcome: this borrower is right at a common conventional threshold. If the appraisal drops below $400,000, LTV would rise and could change pricing or PMI requirements. Keeping a buffer below the lender's maximum can reduce that risk.