How to use the Loan-to-Value (LTV) Calculator
- Enter the property’s value (the lower of price and valuation is what lenders usually use).
- Enter the loan you plan to take.
- Set the LTV you are aiming for, such as 80%.
- Read your LTV and equity, plus the largest loan and smallest down payment for the target.
Formula used
LTV = loan ÷ property value × 100. Equity = value − loan. Largest loan = value × target LTV. Smallest down payment = value − largest loan.
Worked example
Here is the Loan-to-Value (LTV) Calculator worked through with the example values shown above, so you can check each step by hand.
| Inputs | |
|---|---|
| Property value | $400,000 |
| Loan amount | $340,000 |
| Target LTV | 80 % |
| Result | |
| Loan-to-value ratio | 85% |
| Your equity or down payment | $60,000 |
| Largest loan at the target LTV | $320,000 |
| Smallest down payment at the target LTV | $80,000 |
Loan and down payment by target LTV
For the default property value of 400,000.
| Target LTV | Largest loan at the target LTV | Smallest down payment at the target LTV |
|---|---|---|
| 60 % | $240,000 | $160,000 |
| 70 % | $280,000 | $120,000 |
| 75 % | $300,000 | $100,000 |
| 80 % | $320,000 | $80,000 |
| 90 % | $360,000 | $40,000 |
| 95 % | $380,000 | $20,000 |
The calculation
LTV = loan ÷ value × 100. A $340,000 loan on a $400,000 property is 85% LTV, which means $60,000 (15%) is your own money. Borrowing $280,000 instead gives 70%, and $360,000 gives 90%.
For a target of 80%, the largest loan on this property is $320,000, so you need at least $80,000 as a down payment. The table above shows the same figures for other targets.
Why lenders care
A lower LTV leaves a bigger buffer if property prices fall or the lender has to sell. In many markets, loans above 80% LTV attract extra costs such as mortgage insurance, a higher rate or stricter checks, while the best rates go to lower LTV bands, often at 60%, 75% or 80%.
The exact thresholds and rules differ by lender, country and loan type, so use the numbers here to plan and check the lender’s own terms.
Ways to lower your LTV
Save a larger down payment, choose a less expensive property, or wait while paying down principal. Property price rises also reduce LTV on an existing loan, which is why homeowners sometimes refinance once their equity grows.
The mortgage calculator shows the monthly payment for a given loan, and the refinance calculator helps judge whether a new loan at a lower LTV is worth it.
Related measures
Combined LTV adds up all loans secured on the property, such as a second mortgage or home equity line. The loan-to-cost ratio is used in construction lending. Debt-to-income looks at your income instead of the property, and the debt-to-income calculator on this site shows it.
A negative equity position means LTV above 100%, where you owe more than the property is worth.
Frequently asked questions
What is LTV?
Loan-to-value, the loan amount divided by the property value, shown as a percentage.
What is a good LTV for a mortgage?
Lenders often give their best rates at 80% or lower, but terms vary by country and lender.
How do I calculate the down payment from LTV?
Down payment = value × (1 − LTV). At 80% LTV on 400,000 you need 80,000.
Which value do lenders use?
Usually the lower of the purchase price and the lender’s valuation.
Can LTV change over time?
Yes. It falls as you repay the loan and as the property value rises, and it rises if the value falls.
Do fees count in the loan?
If you borrow to cover fees, the loan is larger, which raises the LTV. Enter the full loan amount.
This calculator gives estimates for information only. Actual figures from a bank, employer, tax authority or doctor may differ. It is not financial, tax, legal or medical advice.