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Calculation Machine

Loan to Value Calculator

LTV ratio for a mortgage.

Reviewed by the Calculation Machine team · How we check our maths

Your values

ⓘ Live results

Results
Loan to value
80%
Equity
$80,000.00
Equity percentage
20%
To reach 80% LTV, pay down
$0.00
PMI likely?
No

Quick answer

LTV is the loan balance divided by property value; under 80% avoids mortgage insurance and unlocks better rates.

The formula

LTV = Loan ÷ Value × 100

Worked example

Worked example

Using the values the calculator loads with.

Inputs

  • Loan balance320000 $
  • Property value400000 $

Result

  • Loan to value80%
  • Equity$80,000.00
  • Equity percentage20%
  • To reach 80% LTV, pay down$0.00
  • PMI likely?No

How to use the Loan to Value Calculator

  1. 1Enter your current loan balance.
  2. 2Enter the property's market value.
  3. 3Check whether you are below the 80% threshold.

Frequently asked questions

Why does 80% matter?

Below 80% LTV lenders drop mortgage insurance and offer better pricing.

Can I use an appraisal to drop PMI?

Yes, many lenders allow a new appraisal to prove you crossed 80%.

About this calculator