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Loan-to-Value (LTV) Calculator

Divide a loan balance by a property's value to get the loan-to-value ratio, and see the equity left over in dollars and as a percent.

What this tool does

Divide a loan balance by a property's value to get the loan-to-value ratio, and see the equity left over in dollars and as a percent. You fill in these fields: Loan balance and Property value. It shows loan-to-value ratio, equity, and equity share.

Inputs

  • Loan balance (USD): A number. Must be at least 0.
  • Property value (USD): A number. Must be at least 0. The appraised value or the purchase price.

How to use

  1. Enter the loan balance in USD.
  2. Enter the property value in USD.
  3. Read the result: loan-to-value ratio, equity, and equity share. It appears once every required field has a valid value.

Worked examples

Example 1. Inputs:

  • Loan balance: 150,000 USD
  • Property value: 500,000 USD

Results:

  • Loan-to-value ratio: 30.0% (loan balance divided by property value)
  • Equity: $350,000.00 (property value minus loan balance)
  • Equity share: 70.0% (of the property value)

How this is worked out: LTV = loan / value x 100 = 150000 / 500000 x 100 = 30. Equity = 500000 - 150000 = 350000. Equity share = 100 - 30 = 70.

Example 2. Inputs:

  • Loan balance: 320,000 USD
  • Property value: 400,000 USD

Results:

  • Loan-to-value ratio: 80.0% (loan balance divided by property value)
  • Equity: $80,000.00 (property value minus loan balance)
  • Equity share: 20.0% (of the property value)

How this is worked out: LTV = 320000 / 400000 x 100 = 80, a boundary value for the 80 percent alert. Equity = 400000 - 320000 = 80000. Equity share = 100 - 80 = 20.

Example 3. Inputs:

  • Loan balance: 180,000 USD
  • Property value: 200,000 USD

Results:

  • Loan-to-value ratio: 90.0% (loan balance divided by property value)
  • Equity: $20,000.00 (property value minus loan balance)
  • Equity share: 10.0% (of the property value)
  • Note: Many conventional mortgage lenders in the United States require private mortgage insurance when the loan-to-value ratio is above 80 percent. Rules differ by lender and loan type, so check your lender's requirements.

How this is worked out: Between 80 and 100 percent, where the mortgage insurance note shows: LTV = 180000 / 200000 x 100 = 90. Equity = 200000 - 180000 = 20000. Equity share = 100 - 90 = 10.

Example 4. Inputs:

  • Loan balance: 0 USD
  • Property value: 250,000 USD

Results:

  • Loan-to-value ratio: 0.0% (loan balance divided by property value)
  • Equity: $250,000.00 (property value minus loan balance)
  • Equity share: 100.0% (of the property value)

How this is worked out: No loan: LTV = 0 / 250000 x 100 = 0. Equity is the whole value, 250000, which is 100 percent.

Limitations

  • Uses the single loan balance and property value you enter. It does not combine several loans on one property.
  • The result is only as accurate as the property value you supply.
  • It does not decide whether you qualify for a loan or whether mortgage insurance applies, because lenders set their own limits.

FAQs

Q: How is loan-to-value calculated?
A: The loan balance is divided by the property value and multiplied by 100. A 320,000 loan on a 400,000 property is 80 percent.
Q: What is the difference between LTV and equity?
A: They add up to 100 percent of the property value. The calculator shows the equity share as 100 minus the LTV, and equity in dollars as the value minus the loan balance.
Q: What happens if my loan is larger than the property value?
A: The ratio is above 100 percent and the equity is negative. The calculator shows both and notes that the loan exceeds the value.
Q: Does a loan-to-value ratio above 80 percent always mean mortgage insurance?
A: No. Many conventional lenders in the United States ask for private mortgage insurance above 80 percent, but each lender and loan program sets its own rules, so check with yours.
Q: Which property value should I use?
A: Use the figure your lender uses, usually the appraised value or the purchase price. This tool does not look up values and uses exactly what you type.

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