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Loan-to-Value Calculator

Calculate LTV, equity share and how much loan reduction or down payment may be needed to reach a target LTV.

LTV is a simple ratio. Lenders can use their own appraisal value, eligible loan balance and program-specific thresholds.

Formula

LTV = loan balance / asset value x 100. Equity is value minus loan balance. The target gap compares the current loan balance with value multiplied by the target LTV.

Example

If an asset is worth $400,000 and the loan balance is $320,000, LTV is 80% and equity is $80,000. If the target LTV is 75%, the loan balance would need to fall to $300,000.

Common mistakes

Use the value a lender is likely to recognize, not only an optimistic listing price. For sale planning, include selling costs separately because gross equity is not the same as cash received.

How to read the result

A lower LTV usually means more equity relative to the asset value. If the target gap is positive, it shows how much the loan balance would need to fall to reach the target LTV you entered.

Limitations

This estimate does not determine mortgage eligibility, PMI cancellation, refinancing approval or appraisal value. Program thresholds and lender rules can differ.

References

Last reviewed: 2026-05-16

Before relying on this result

Use this calculator together with the formula, assumptions, limitations and examples on the page. If the topic involves health, tax, lending, investment, legal, safety or current-rate decisions, treat the number as an estimate and check the relevant primary source or professional guidance.

Calculator metadata last reviewed: 2026-05-14.