What is a loan-to-value (LTV) ratio?

LTV is a financial term that compares the amount of a loan to the appraised value of the property used as collateral. It is expressed as a percentage. For example, if you borrow $80,000 on a property worth $100,000, your LTV is 80%.

How do I calculate my LTV ratio?

Divide the loan balance by the property value, then multiply by 100. For instance, a loan balance of $150,000 on a property valued at $200,000 gives an LTV of 75%.

Why is LTV important for lenders?

Lenders use LTV to assess risk. A higher LTV means more risk for the lender because you have less equity. It often affects loan approval, interest rates, and whether you need private mortgage insurance (PMI).

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Loan-to-Value Calculator.

Calculate loan-to-value from loan amount and property value.

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02 / 答案

Loan amount

Property value

Loan-to-value ratio

80%%

Cite this calculator

Canonical URL: https://mathify.one/zh/finance/ltv

Cite as: Mathify. (n.d.). Loan-to-Value Calculator. https://mathify.one/zh/finance/ltv

Use Cases

Mortgage refinancing decisions

Determine if you have enough equity to refinance or avoid PMI. Many lenders require an LTV of 80% or less for favorable terms.

Example: If your home is worth $300,000 and you owe $210,000, your LTV is 70%.

Home buying planning

Estimate the LTV for a potential home purchase to understand down payment requirements and loan options.

Example: For a $250,000 home with a $50,000 down payment, your loan is $200,000, so LTV is 80%.

Frequently Asked Questions

What is a loan-to-value (LTV) ratio?: LTV is a financial term that compares the amount of a loan to the appraised value of the property used as collateral. It is expressed as a percentage. For example, if you borrow $80,000 on a property worth $100,000, your LTV is 80%.
How do I calculate my LTV ratio?: Divide the loan balance by the property value, then multiply by 100. For instance, a loan balance of $150,000 on a property valued at $200,000 gives an LTV of 75%.
Why is LTV important for lenders?: Lenders use LTV to assess risk. A higher LTV means more risk for the lender because you have less equity. It often affects loan approval, interest rates, and whether you need private mortgage insurance (PMI).

Tips & Common Mistakes

Tips

Use the current appraised value of the property, not the purchase price, for the most accurate LTV.
If your LTV is above 80%, you may need to pay for private mortgage insurance (PMI) on a conventional loan.
A lower LTV can help you qualify for better interest rates and loan terms.
Re-calculate your LTV periodically as your property value changes or as you pay down your loan.

Common Mistakes to Avoid

Using the purchase price instead of the current market value, which can skew your LTV.
Forgetting to include all outstanding loan balances, such as a second mortgage or home equity line of credit.
Assuming a lower LTV always means you can avoid PMI; lender requirements vary.

Last updated: August 13, 2026