Mortgage Calculator
Estimate your monthly mortgage payments, total loan costs, and plan your property financing with this free mortgage calculator.
Open Calculator →Loan-to-Value (LTV) Ratio Calculator
Easily calculate your loan-to-value ratio to understand your mortgage risk level and borrowing power.
Understand Your Loan-to-Value Ratio
The Loan-to-Value (LTV) Calculator helps you measure how much of a property’s value is financed through a loan. It’s one of the most important metrics lenders use when approving mortgages or refinancing.
Why LTV Matters for Borrowers
A lower LTV means less borrowing risk and potentially better loan terms. Lenders use it to determine interest rates, insurance requirements, and approval odds. It also reflects your equity in the property.
Loan-to-Value Ratio = (Loan Amount ÷ Property Value) × 100
Example
If your mortgage is $300,000 and the property is worth $400,000, your LTV ratio is:
(300,000 ÷ 400,000) × 100 = 75%
This means you’ve financed 75% of your home and have 25% equity. LTVs under 80% are ideal for avoiding private mortgage insurance (PMI).
Tips to Improve LTV
- Make a larger down payment
- Increase property value through renovations
- Pay down your loan balance faster
- Refinance when equity improves