United States
United States LTV calculator
Your loan-to-value ratio — the number lenders lean on most to price your mortgage and decide what you qualify for.
Property & down payment
Loan-to-value
85.0%
Borrowing $340,000 against a $400,000 property.
- Your equity from day one
- 15.0%
- Loan amount
- $340,000
An estimate for planning — not financial advice. LTV is simply the loan divided by the property value; lender rules and thresholds vary.
Loan-to-value (LTV) is your mortgage as a percentage of the home's price, and in the US it decides PMI: with an LTV above 80% — less than 20% down — lenders require private mortgage insurance until you build 20% equity. This calculator shows your LTV and where you stand.
How this calculator works
LTV = loan ÷ price. A $475,000 loan on a $500,000 home is 95% LTV. The bigger your down payment, the lower the LTV.
Above 80% LTV, PMI is added to your monthly payment; it ends automatically at 78% LTV, or you can request cancellation at 80%. At 20%+ down there's no PMI at all.
LTV also affects your rate — lenders often price lower-LTV loans a little better — so a larger down payment can help twice.
A worked example
On a $500,000 home, your down payment sets the LTV and whether PMI applies:
- 5% down → loan
- $475,000 · LTV 95% → PMI required
- 10% down → loan
- $450,000 · LTV 90% → PMI required
- 20% down → loan
- $400,000 · LTV 80% → no PMI
PMI ends automatically once your LTV reaches 78%, or you can ask to cancel it at 80%.
Who it's for
- You want to know whether you'll pay PMI.
- You're comparing 5%, 10%, and 20% down.
- You want to understand equity thresholds.
Frequently asked questions
What LTV do I need to avoid PMI?
80% or below — meaning a 20% down payment or more. Above 80% LTV, private mortgage insurance is required until you build enough equity.
When does PMI go away?
It cancels automatically when your loan-to-value reaches 78% of the original value, and you can request cancellation once you hit 80%.
Does LTV affect my interest rate?
Often, yes — many lenders offer slightly better rates at lower LTVs, so a larger down payment can lower both your rate and your PMI.
How do I lower my LTV?
Put more down, buy a less expensive home, or build equity over time through payments and appreciation.