How to calculate loan-to-value
LTV = (price − down payment) ÷ price × 100
Worked example. Loan-to-value ratio: 90 %.
Example inputs — Home price: $350,000; Down payment: $35,000. Starting values are illustrative.
Above 80% — lenders typically require PMI until you reach 80%.
From George Guju, founder of Calculyn · Educational calculator guidance, not professional advice.
How it works
LTV compares your loan to the home's price. It's the key number lenders use: above 80% usually means paying PMI, and lower LTVs unlock better rates.
Assumptions & limitations
- Results are rounded for display.
Formula and assumptions reviewed October 2026 by the Calculyn team. How we build our calculators
Frequently asked questions
How do I get rid of PMI?
PMI usually drops off automatically at 78% LTV, or you can request removal at 80% based on current value.
Does LTV affect my rate?
Yes — every 5% step down in LTV generally improves the rate a lender offers.