What LTV is required to avoid PMI?

Most US lenders drop PMI once LTV < 80%. Use this calculator to track progress.

Does this handle multiple loans?

Add subordinate loans to the loan amount to compute combined LTV.

How often should I update property value?

Update when market conditions change significantly or after an appraisal. Using stale values can misstate LTV.

Is lower always better?

Lower LTV generally means lower risk and better rates. Some products cap LTV for approval.

Does this replace underwriting?

No. Lenders also review credit, income, reserves, and property condition.

finance calculator

Loan-to-Value (LTV) Calculator

Figure out the LTV ratio for mortgages, HELOCs, or equipment loans.

Results

Loan-to-value ratio: 75.00%
Equity remaining: 25.00%

How to use this calculator

Enter loan amount (or total loans if multiple).
Enter current property value.
See LTV and remaining equity percentage.

Inputs explained

Loan amount: Outstanding balance(s) you want to evaluate.
Property value: Recent appraisal or estimate of the asset’s value.

How it works

LTV = Loan ÷ Property value. Equity = 1 − LTV.

Formula

LTV = Loan ÷ Property value

When to use it

Checking if you’re below 80% LTV to drop PMI.
Evaluating refinance eligibility or HELOC room via combined LTV.
Comparing leverage ratios across properties or equipment.

Tips & cautions

For combined LTV, include all liens (first + seconds/HELOCs) in the loan amount.
Use a realistic market value—overstating value understates true LTV.
Some lenders have tiered pricing at 60/70/80/90% LTV—use this to see where you land.
Relies on accurate property value; outdated appraisals skew results.
Does not include debt-to-income or other underwriting factors.
Assumes a single asset; portfolios need property-by-property LTVs.

Worked examples

$320k loan on $400k home

LTV = 80%

$90k HELOC on $300k appraisal

LTV = 30%

Deep dive

This loan-to-value calculator divides your loan balance by property value to show LTV and equity percentage. Enter the loan amount and current value to see where you stand.

Use it to check PMI removal thresholds, refinance eligibility, or leverage across properties. Include all liens for combined LTV when evaluating HELOC space.

FAQs

What LTV is required to avoid PMI?: Most US lenders drop PMI once LTV < 80%. Use this calculator to track progress.
Does this handle multiple loans?: Add subordinate loans to the loan amount to compute combined LTV.
How often should I update property value?: Update when market conditions change significantly or after an appraisal. Using stale values can misstate LTV.
Is lower always better?: Lower LTV generally means lower risk and better rates. Some products cap LTV for approval.
Does this replace underwriting?: No. Lenders also review credit, income, reserves, and property condition.

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Always validate with your lender’s underwriting rules, as they consider more than just LTV.