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Loan-to-Value (LTV) Ratio Calculator

Curious about how much equity you hold in your home—or how much you can borrow? The Loan-to-Value (LTV) Ratio Calculator helps you determine the percentage of your property’s value that’s financed by a loan, offering insight into your borrowing risk and mortgage eligibility.



Loan-to-Value (LTV) Calculator

Your LTV Ratio

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What is Loan-to-Value (LTV) Ratio Calculator

The Loan-to-Value (LTV) Ratio Calculator is a financial tool that measures the relationship between the loan amount and the appraised value of a property. Expressed as a percentage, the LTV ratio is a critical factor lenders use to evaluate mortgage applications, refinancing requests, and home equity loans. A lower LTV means you have more equity and are considered less risky to lenders, while a higher LTV may require mortgage insurance or lead to higher interest rates.

This calculator is especially useful for homebuyers, homeowners planning to refinance, or anyone considering a second mortgage or home equity line of credit (HELOC). By knowing your LTV ratio, you gain clarity on how much you can borrow, what loan products you may qualify for, and whether you need to take steps to improve your equity position.




How it works

Loan-to-Value (LTV) Ratio Calculator Works

The LTV Calculator is simple but powerful. You begin by entering the current appraised value or purchase price of the home, and the amount of the loan you’re applying for or already have. The tool divides the loan amount by the home’s value and multiplies the result by 100 to give you the LTV ratio as a percentage.

For example, if you’re buying a ₹50,00,000 home with a loan of ₹40,00,000, your LTV ratio is 80%. Most conventional lenders prefer an LTV of 80% or lower for the best loan terms. Anything higher may trigger private mortgage insurance (PMI) or limit your refinancing options. This calculator helps you understand where you stand and how making a larger down payment or paying down your loan can improve your financial position and borrowing terms.



Frequently Asked Questions

What is considered a good LTV ratio Toggle
An LTV of 80% or less is typically ideal for securing favorable mortgage terms without requiring mortgage insurance.
Can I get a mortgage with a high LTV ratio Toggle
Yes, but you may face higher interest rates, stricter loan conditions, and be required to purchase PMI to protect the lender.
Does the LTV ratio affect refinancing eligibility Toggle
Absolutely. A lower LTV improves your chances of refinancing approval and may qualify you for better interest rates or lower fees.
How can I lower my LTV ratio Toggle
You can reduce your LTV by making a larger down payment, paying down your current mortgage, or waiting for your home’s value to appreciate.
Is LTV the same as equity Toggle
They’re related but opposite: LTV measures how much of your home is financed, while equity is the portion you truly own. A lower LTV means higher equity.