Loan-to-Value (LTV) Calculator
How it works
LTV is just loanAmount / propertyValue, expressed as a percentage. The second calculator runs that the other way: given a property value and a target percentage, it multiplies them back out to find the largest loan that would still land at or under that target — useful for working backward to the down payment you would need to hit a specific LTV, such as 80%.
Frequently asked questions
What is LTV, and why do lenders care about it?
Loan-to-value is the loan amount as a percentage of the property's value — a $240,000 loan on a $300,000 property is 80% LTV. A higher LTV means the lender is financing a bigger share of the property, so if it ever had to be repossessed and sold, there is less of a price cushion protecting the lender from a loss. Lenders typically price that extra risk in with a higher interest rate, or require mortgage insurance, once LTV climbs high enough.
Why is 80% specifically treated as a threshold?
80% LTV is commonly the line below which private mortgage insurance (PMI) is typically not required on a conventional mortgage — it corresponds to a 20% down payment. This is a common convention rather than a universal rule: exact thresholds and requirements vary by lender and loan type, so confirm the number that applies to your own loan.
How are the two calculators on this page related?
They are inverses of the same relationship. The first divides a loan by a property value to get a percentage; the second multiplies a property value by a target percentage to get back a loan amount. Feeding the second calculator's answer into the first, against the same property value, reports the same target LTV back.