LTV Calculator

Ltv calculator can calculate Loan to value and cumulative loan to value ratios for your mortgage based on the property value.

Currency (optional)
Estimate Property Value ($)
First Mortage Amount Owed ($)

Total amount owed: 0

First Mortage loan-to-value (LTV) ratio: 0

Combined loan-to-value ratio: 0

The loan to value ratio is a ratio used by financial institutions and lenders for assessing the lending risk before approving a mortgage. The loan assessments with high LTV ratios are considered high-risk loans. On the approval of high-risk mortgages, the applicant is charged with a higher interest rate. In general, the financial institutions offer a lower interest rate to the applicants who have a loan to value ratio of 80% or below. An LTV is expressed as a percentage and calculated by dividing the borrowing amount with the property’s appraised value. At times, the lenders ask the applicants to purchase mortgage insurance to offset the risk due to high LTV. If you are looking for an easy way to figure out whether your mortgage would be approved or not, you should use the LTV calculator for LTV calculation.

The loan to value calculator on is an easy to use tool due to its user-friendly interface. The users don’t have to pay a penny for using this advanced LTV (loan to value) calculator. Plus, you don’t have to follow any hard and fast rules for calculating LTV with this LTV calculator. By following the simple set of instructions given below, you can calculate loan to value ratio without any hassle.

  1. First of all, enter the borrowing amount in the space provided.
  2. Next, provide the appraised value of the property.
  3. Lastly, hit the “Calculate LTV” button.
  4. As a result, the LTV calculator will generate and display the LTV ratio in a matter of seconds.

CLTV or combined loan to value is the ratio used by lenders to determine the applicant’s risk of default when more than one loan or mortgage is taken. CLTV comes into play for helping a lender assess the affordability of a buyer to purchase a property. CLTV is similar to LTV, but its calculation involves all of the mortgages. The primary difference between CLTV and LTV calculation is that the latter only involves the first mortgage in its calculation.

LTV matters a lot when it comes to borrowing money for purchasing a property. It is an important deciding factor for the lender to approve or disapprove your mortgage request. The loan to value is directly proportional to the interest charged against the mortgage. The lower the LTV, the lower will be the rate of interest charged by the lender. It results in the benefit of the borrower as he/she will have to pay lower monthly installments.

The mortgages or loans with higher LTV require private mortgage insurance. It becomes essential for a mortgagee to calculate LTV, as the results will determine whether the PMI has to be taken out for reducing the risk. The mortgagor might have to bear a higher interest rate as well as PMI expense due to the high LTV on the mortgage.

LTV Formula

Besides using an LTV calculator, you can also use the formula to calculate LTV. The LTV formula is:

LTV = Mortgage Amount / Appraised property value

Although this formula isn’t hard to understand, using a loan to value calculator is still a better option as it provides 100% accurate results in a blink of an eye. While calculating LTV manually, you will need a LTV calculator to get the answers that can sometimes result in inaccuracies.

The LTV ratio of 80% or less is ideal for a mortgage, as the mortgagor will have to face a lower rate of interest against the borrowing amount. If the LTV mortgage is higher than 80%, the borrower will also have to pay for PMI along with a greater interest rate.