Loan-to-Value Ratio Calculator: Find Your LTV Today

What does a ratio of 80.00% mean?

On the defaults — $320,000 of loan amount and $400,000 of property value — the loan-to-value ratio is 80.00% (ratio decimal 0.8000), which means 80 cents of every home-value dollar is borrowed. The down payment is $400,000.00 − $320,000.00 = $80,000.00, and the ratio is $320,000.00 ÷ $400,000.00 = 80.00%. A ratio of 80.00% means the loan covers four-fifths of the home's value and you own one-fifth outright from day one — for every $100 of home value, $80 is borrowed and $20 is yours. Whether that is comfortable or tight depends on the lender and on how steady your income is — an 80.00% ratio against steady income is the usual line where PMI drops off, and the same 80.00% against shaky income still leaves you exposed if the home's value slips.

Three things about the model are worth stating plainly.

First, the division is $320,000.00 ÷ $400,000.00 = 80.00%, and the ratio decimal is 0.8000 — the percent and the decimal are two outputs, never the same number. Second, the meaning is 80 cents of every home-value dollar is borrowed — the loan's share of the home's value, not the monthly payment and not the interest rate. And third, the ratio is displayed as a percent to two decimals, half-up, and a ratio that displays as 80.00% can sit a hair below or above the displayed figure: $319,999.50 of loan and $400,000 of property value gives 79.999875%, which displays as 80.00%, and $123,456.78 of loan and $456,789.01 of property value gives 27.027091%, which displays as 27.03% — all listed in Accuracy & limitations.

The worked example, line by line

Setup: loan amount $320,000, property value $400,000.

Line 1 — the down payment. $400,000.00 − $320,000.00 = $80,000.00.

Line 2 — the ratio. $320,000.00 ÷ $400,000.00 = 80.00% (unrounded 80.000000%; ratio decimal 0.8000).

Line 3 — the check. At $360,000 of loan amount the ratio is 90.00%; and at $359,999 it is 89.999750% — below 90.00%.

Every branch, checked

Loan $200,000: loan amount $200,000.00; property value $400,000.00; down payment $200,000.00; loan-to-value ratio 50.00% (ratio decimal 0.5000) — With $200,000 of loan amount the ratio falls to 50.00%.

Loan $360,000: loan amount $360,000.00; property value $400,000.00; down payment $40,000.00; loan-to-value ratio 90.00% (ratio decimal 0.9000) — With $360,000 of loan amount the ratio rises to 90.00%.

Value $500,000: loan amount $320,000.00; property value $500,000.00; down payment $180,000.00; loan-to-value ratio 64.00% (ratio decimal 0.6400) — With $500,000 of property value the ratio falls to 64.00%.

Value $350,000: loan amount $320,000.00; property value $350,000.00; down payment $30,000.00; loan-to-value ratio 91.43% (ratio decimal 0.9143) — With $350,000 of property value the ratio rises to 91.43%.

Loan $240,000: loan amount $240,000.00; property value $400,000.00; down payment $160,000.00; loan-to-value ratio 60.00% (ratio decimal 0.6000) — With $240,000 of loan amount the ratio falls to 60.00%.

Value $450,000: loan amount $320,000.00; property value $450,000.00; down payment $130,000.00; loan-to-value ratio 71.11% (ratio decimal 0.7111) — With $450,000 of property value the ratio falls to 71.11%.

Loan $380,000: loan amount $380,000.00; property value $400,000.00; down payment $20,000.00; loan-to-value ratio 95.00% (ratio decimal 0.9500) — With $380,000 of loan amount the ratio rises to 95.00%.

Value $320,000: loan amount $320,000.00; property value $320,000.00; down payment $0.00; loan-to-value ratio 100.00% (ratio decimal 1.0000) — With $320,000 of property value the ratio rises to 100.00%.

The reverses, worked backwards

Smallest loan for the ratio to REACH 90%: At the displayed $360,000 the figures are loan amount $360,000.00; property value $400,000.00; down payment $40,000.00; loan-to-value ratio 90.00% (unrounded 90.000000%) (ratio decimal 0.9000). At $359,999 the ratio is 89.999750% unrounded — below the target, though it displays as 90.00% — so $360,000 is the smallest loan for the ratio to REACH 90%.

Largest property value for the ratio to STAY at or above 85%: At the displayed $376,470 the figures are loan amount $320,000.00; property value $376,470.00; down payment $56,470.00; loan-to-value ratio 85.00% (unrounded 85.000133%) (ratio decimal 0.8500). At $376,471 the ratio is 84.999907% unrounded — below the target — and at $376,469 the ratio is 85.000359% unrounded — above the target — so $376,470 is the largest property value for the ratio to STAY at or above 85%.

Smallest loan for the ratio to REACH 95%: At the displayed $380,000 the figures are loan amount $380,000.00; property value $400,000.00; down payment $20,000.00; loan-to-value ratio 95.00% (unrounded 95.000000%) (ratio decimal 0.9500). At $379,999 the ratio is 94.999750% unrounded — below the target, though it displays as 95.00% — so $380,000 is the smallest loan for the ratio to REACH 95%.

Largest loan for the ratio to STAY at or below 75%: At the displayed $300,000 the figures are loan amount $300,000.00; property value $400,000.00; down payment $100,000.00; loan-to-value ratio 75.00% (unrounded 75.000000%) (ratio decimal 0.7500). At $300,001 the ratio is 75.000250% unrounded — above the target, though it displays as 75.00% — so $300,000 is the largest loan for the ratio to STAY at or below 75%.

Smallest property value for the ratio to STAY at or below 80%: At the displayed $400,000 the figures are loan amount $320,000.00; property value $400,000.00; down payment $80,000.00; loan-to-value ratio 80.00% (unrounded 80.000000%) (ratio decimal 0.8000). At $399,999 the ratio is 80.000200% unrounded — above the target, though it displays as 80.00% — so $400,000 is the smallest property value for the ratio to STAY at or below 80%.

Largest property value for the ratio to STAY at or above 70%: At the displayed $457,142 the figures are loan amount $320,000.00; property value $457,142.00; down payment $137,142.00; loan-to-value ratio 70.00% (unrounded 70.000131%) (ratio decimal 0.7000). At $457,143 the ratio is 69.999978% unrounded — below the target — and at $457,141 the ratio is 70.000284% unrounded — above the target — so $457,142 is the largest property value for the ratio to STAY at or above 70%.

A warning about the neighbours: every neighbour above sits one dollar from the star, and every neighbour ratio is a hair below or above the target even though it displays as the target — a one-dollar move in loan or value moves the percent by about 0.00004 points, so the displayed two-decimal figure cannot tell the star from its neighbour. The page prints the unrounded six-decimal percent in full so the rounding does not mislead you: 90.000000, 89.999750, 85.000133, 84.999907, 85.000359, 95.000000, 94.999750, 75.000000, 75.000250, 80.000000, 80.000200, 70.000131, 69.999978, 70.000284.

What the defaults assume

The defaults are $320,000 of loan amount and $400,000 of property value — loan amount $320,000.00; property value $400,000.00; down payment $80,000.00; loan-to-value ratio 80.00% (ratio decimal 0.8000). With Loan $200,000, loan amount $200,000.00; property value $400,000.00; down payment $200,000.00; loan-to-value ratio 50.00% (ratio decimal 0.5000). With Loan $360,000, loan amount $360,000.00; property value $400,000.00; down payment $40,000.00; loan-to-value ratio 90.00% (ratio decimal 0.9000). With Value $500,000, loan amount $320,000.00; property value $500,000.00; down payment $180,000.00; loan-to-value ratio 64.00% (ratio decimal 0.6400). With Value $350,000, loan amount $320,000.00; property value $350,000.00; down payment $30,000.00; loan-to-value ratio 91.43% (ratio decimal 0.9143). With Loan $240,000, loan amount $240,000.00; property value $400,000.00; down payment $160,000.00; loan-to-value ratio 60.00% (ratio decimal 0.6000). With Value $450,000, loan amount $320,000.00; property value $450,000.00; down payment $130,000.00; loan-to-value ratio 71.11% (ratio decimal 0.7111). With Loan $380,000, loan amount $380,000.00; property value $400,000.00; down payment $20,000.00; loan-to-value ratio 95.00% (ratio decimal 0.9500). With Value $320,000, loan amount $320,000.00; property value $320,000.00; down payment $0.00; loan-to-value ratio 100.00% (ratio decimal 1.0000). With All zero, loan amount $0.00; property value $0.00; loan-to-value ratio undefined — no loan, no value, and the ratio is undefined. With Loan $250,000, value $500,000, loan amount $250,000.00; property value $500,000.00; down payment $250,000.00; loan-to-value ratio 50.00% (ratio decimal 0.5000) — half the home's value is borrowed. With Fractional inputs (ratio unrounded 79.999875%), loan amount $319,999.50; property value $400,000.00; down payment $80,000.50; loan-to-value ratio 80.00% (unrounded 79.999875%) (ratio decimal 0.8000) — the ratio displays as 80.00%. With Loan $1,600,000, value $2,000,000, loan amount $1,600,000.00; property value $2,000,000.00; down payment $400,000.00; loan-to-value ratio 80.00% (ratio decimal 0.8000) — the same ratio at five times the size. With Loan $0, loan amount $0.00; property value $400,000.00; down payment $400,000.00; loan-to-value ratio 0.00% (ratio decimal 0.0000) — no loan at all, a real figure, not undefined. With Value $0, loan amount $600,000.00; property value $0.00; loan-to-value ratio undefined — no value to divide by. With Negative loan, loan amount −$10,000.00; property value $400,000.00; down payment $410,000.00; loan-to-value ratio −2.50% (ratio decimal −0.0250) — the ratio is negative, a real figure. With Small numbers, loan amount $8,000.00; property value $10,000.00; down payment $2,000.00; loan-to-value ratio 80.00% (ratio decimal 0.8000) — four-fifths of a small home's value is borrowed. With Fractional inputs (ratio unrounded 27.027091%), loan amount $123,456.78; property value $456,789.01; down payment $333,332.23; loan-to-value ratio 27.03% (unrounded 27.027091%) (ratio decimal 0.2703) — the ratio displays as 27.03%. With Over 100% (underwater), loan amount $450,000.00; property value $400,000.00; down payment −$50,000.00; loan-to-value ratio 112.50% (ratio decimal 1.1250) — the loan is bigger than the home's value, underwater. With Loan $145,000, value $290,000, loan amount $145,000.00; property value $290,000.00; down payment $145,000.00; loan-to-value ratio 50.00% (ratio decimal 0.5000) — half the home's value is borrowed.

A note on the rounding: the ratio is displayed as a percent to two decimals, half-up. With the fractional inputs the unrounded ratio is 79.999875% — it displays as 80.00% — and with the other fractional inputs it is 27.027091% — it displays as 27.03%. The page prints the unrounded value so the rounding does not mislead you.

Output · formula · meaning

Who uses this

• The homebuyer signing a mortgage: they learn $320,000 of loan against $400,000 of property value is a ratio of 80.00% — and they check the $360,000 reverse to see the loan that pushes the ratio to 90.00%.
• The homeowner refinancing: they learn a ratio of 80.00% means 80 cents of every home-value dollar is borrowed — and they check the $376,470 reverse to see how much value keeps the ratio at or above 85.00%.
• The lender setting PMI: they learn the ratio rises when the loan rises or the value falls — and they check the $400,000 reverse to see the value that keeps the ratio at or below 80.00%.
• The student learning mortgage ratios: they learn the ratio is the loan amount divided by the property value — and they check the $300,000 reverse to see how much loan keeps the ratio at or below 75.00%.

Accuracy & limitations

The math is first-principles: the loan-to-value ratio is the loan amount divided by the property value — all in dollars, the ratio displayed as a percent to two decimals half-up, and as a ratio decimal to four decimals. There IS division in this calculator — at $0 of loan amount and $0 of property value the ratio is UNDEFINED, division by zero, no value to divide by — the calculator shows “ratio undefined” with a note, never hides it. The ratio is also undefined when property value is $0 for any other reason, for example $600,000 of loan against $0 of property value. At $0 of loan amount the ratio is 0.00% — a real figure, not undefined — and at a negative loan amount the ratio is negative: −$10,000 of loan against $400,000 of property value gives −2.50% (unrounded −2.500000%) — a real figure, shown with the U+2212 minus sign. Negative property value is NOT meaningful — a home's value is never negative — say so plainly and do not treat a negative value figure as a real case. With the fractional inputs the unrounded ratio is 79.999875% — it displays as 80.00% — and with the other fractional inputs it is 27.027091% — it displays as 27.03%. What the model cannot do is say whether 80.00% is a good ratio: the ratio says nothing about what the loan costs — an 80.00% ratio at a low rate is comfortable and the same 80.00% at a punishing rate still leaves the borrower exposed if the home's value slips. It also says nothing about when the loan falls due — the ratio lumps the whole loan into one number. Use it to see what share of the home the loan covers — then check the PMI calculator, the mortgage calculator and the down payment calculator before you decide the loan pays.

Frequently asked questions