Loan-to-Value (LTV) Calculator
This LTV calculator finds your loan-to-value ratio and equity position. It also shows whether mortgage insurance is likely to apply.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
Value means the appraised value, which can differ from your purchase price or an online estimate. Conventional PMI generally applies above 80% LTV; FHA mortgage insurance follows its own rules. Estimate only.
Loan-to-value is the loan divided by the property value. It is the single ratio that most influences your rate, whether mortgage insurance applies, and which programs you qualify for.
Lenders price in bands. Crossing from 80.1% to 80.0% can remove mortgage insurance entirely, which is why a small change in down payment or appraised value sometimes moves the payment more than a rate change would.
These figures are estimates. For neutral, official guidance on mortgage costs and what lenders can charge, see the CFPB's Owning a Home guide.
How to Use This Calculator
- 1
Enter the property value — the appraised value if you have one, not a portal estimate.
- 2
Enter the loan amount for a purchase, or the current balance for a refinance.
- 3
Set a target LTV, commonly 80% to avoid mortgage insurance.
- 4
Read your LTV, and the room left before you reach the target.
The Formula & Assumptions
LTV = loan ÷ value × 100
Equity = value − loan
Max loan at target =
value × target%
On a purchase, lenders use the lower of the purchase price or the appraised value, so a low appraisal raises your effective LTV and can require more cash at closing.
Conventional loans generally require private mortgage insurance above 80% LTV, and it can be removed later once you reach 80% by paydown or appreciation. FHA mortgage insurance follows different rules and, on most current FHA loans with minimum down payment, stays for the life of the loan.
Cash-out refinances are usually capped tighter than rate-and-term refinances, and investment properties tighter still. If you are planning a cash-out, check the program cap before assuming your equity is reachable.
Frequently Asked Questions
What LTV do I need to avoid PMI?
On a conventional loan, 80% or lower — meaning at least 20% equity or down payment. Above that, private mortgage insurance generally applies until you reach 80% through paydown or appreciation, at which point it can usually be removed on request.
Which value do lenders use?
The appraised value, and on a purchase the lower of appraised value or contract price. Online estimates are useful for planning but carry no weight in underwriting.
What is the maximum LTV on a cash-out refinance?
Commonly 80% on a conventional cash-out for a primary residence, lower for second homes and investment properties. VA allows more for eligible veterans. The cap is program-specific, so confirm before you plan around the equity.
Does a higher LTV mean a higher rate?
Usually yes. Lenders price in LTV bands, so a loan at 95% typically prices worse than the same loan at 75%, and mortgage insurance adds cost on top. Both effects move in your favor as equity builds.
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Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.