Loan-to-Value (LTV) Calculator

Q: What is a good loan-to-value ratio?

80% or below is the key benchmark: it avoids PMI on conventional loans and gets the best rate tiers. Above 95-97% LTV, loan options narrow considerably. For refinancing, most lenders want 80% LTV or lower for the best terms.

Q: How do I calculate my LTV?

Divide your current loan balance by your home's current appraised value and multiply by 100. A $240,000 balance on a $320,000 home is 240,000 ÷ 320,000 = 75% LTV.

Q: At what LTV can I remove PMI?

You can request PMI cancellation at 80% LTV based on the original value (or current value with an appraisal), and lenders must automatically terminate it at 78% LTV on conventional loans under the Homeowners Protection Act.

Check your LTV ratio, your home equity, and exactly how much more principal or appreciation gets you to the 80% mark where PMI goes away.

Your loan-to-value ratio

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Home equity

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Equity percentage

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Balance at 80% LTV

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To reach 80% LTV

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The LTV formula

LTV = (Loan balance ÷ Home value) × 100

Worked example

Balance $240,000 · home value $320,000

LTV = 240,000 ÷ 320,000 = 75% → equity of $80,000 (25%). Already under 80%, so PMI shouldn't apply.

Why LTV matters

LTV	What it means
≤ 80%	No PMI; best rates; refinance and HELOC eligible
80–90%	PMI on conventional loans; decent options
90–97%	Higher rates and PMI; fewer programs
> 100%	"Underwater" — you owe more than the home is worth

Lenders read LTV as risk: the more equity you hold, the more cushion they have if you default. Getting under 80% unlocks PMI removal (request at 80%, automatic at 78% under the Homeowners Protection Act), better refinance pricing, and home equity borrowing. You can get there faster with extra principal payments — or via a new appraisal if your market has appreciated.

Frequently asked questions

What is a good loan-to-value ratio?

80% or below — it avoids PMI and gets the best rate tiers. Above 95–97%, options narrow considerably.

How do I calculate my LTV?

Loan balance ÷ current home value × 100. $240,000 on a $320,000 home = 75%.

At what LTV can I remove PMI?

Request cancellation at 80% LTV; lenders must auto-terminate at 78% on conventional loans.

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Note: Lender LTV rules vary by program; home value estimates require an appraisal for official use. Not financial advice. Last reviewed: July 2026.