LTV Calculator United States 2026
Check your loan-to-value ratio before you apply.
Calculate your LTV, check if you need Private Mortgage Insurance (PMI) (PMI), and see how much deposit you need to avoid it. Includes PMI cost estimation and guarantor modelling.
LTV determines PMI and rate tiers. 80% is the key threshold for most lenders.
Select the question that matches where you are right now.
LTV (Loan-to-Value Ratio) is your loan amount expressed as a percentage of the property value. At 80% LTV or below, you avoid Private Mortgage Insurance (PMI). Above 80%, PMI adds significant cost — but allows you to buy sooner.
Compare scenarios by adjusting inputs. Use the precision bar to reveal more detail. Results update in real time as you type.
Not professional financial advice, not a guarantee of any specific outcome, and not a substitute for qualified advice for significant decisions.
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The inputs that most influence this result are shown in the breakdown above. Even small changes to key variables can have a significant compound effect over time.
Longer periods amplify both growth and cost. Starting one year earlier or later can change a financial outcome by more than you expect.
Even a 1% change in rate can materially change the outcome over a long period. Use Standard or Advanced mode to model rate sensitivity.
Most financial variables have a non-linear relationship with the result — they compound. The sensitivity table in Advanced mode shows this clearly.
To improve this result, focus on the inputs with the highest leverage. Small changes to the right variable often produce much larger outcomes than large changes to less important ones.
Adjust inputs one at a time. The one that moves the result most is your binding constraint — focus effort there first.
Use the Scenario A/B feature in Advanced mode to compare two situations side by side.
Many financial decisions benefit from timing. Starting earlier, fixing a rate at the right moment, or clearing a debt before applying for new credit can each produce significant improvements.
Depending on what you are planning, these are the natural next steps after reviewing this result.
This calculator shows one part of a financial decision. The related calculators below help you model adjacent factors.
Switch to Standard or Advanced mode and use the scenario comparison tool to model best, expected, and worst case.
For decisions involving significant amounts of money, use this result as a starting point for a conversation with a qualified financial advisor.
How LTV is calculated and why it matters
LTV formula
LTV = (Loan amount ÷ Property value) × 100. A $480,000 loan on a $600,000 property = 80% LTV. The '20% deposit' rule means keeping LTV at or below 80%.
| Property value | 20% deposit | 80% LTV loan | 10% deposit | 90% LTV loan |
|---|---|---|---|---|
| $500,000 | $100,000 | $400,000 | $50,000 | $450,000 |
| $600,000 | $120,000 | $480,000 | $60,000 | $540,000 |
| $750,000 | $150,000 | $600,000 | $75,000 | $675,000 |
| $1,000,000 | $200,000 | $800,000 | $100,000 | $900,000 |
Private Mortgage Insurance (PMI) — cost and when it applies
What is PMI?
PMI (Private Mortgage Insurance (PMI)) is a one-off premium paid by the borrower when the LTV exceeds 80%. It protects the lender, not you, if you default. It is added to the loan or paid upfront.
| LTV | Approximate PMI on $500k loan | Approximate PMI on $700k loan |
|---|---|---|
| 80% or below | $0 | $0 |
| 85% | $6,000–$8,000 | $9,000–$12,000 |
| 90% | $9,000–$14,000 | $14,000–$20,000 |
| 95% | $14,000–$22,000 | $22,000–$32,000 |
Why 80% LTV is the key threshold
What changes at 80%
Below 80% LTV: no PMI, typically lower interest rates (some lenders offer rate discounts below 70% and 60% LTV), and stronger negotiating position with lenders. Above 80%: PMI applies and rates are typically slightly higher.
Is it worth saving for 20%?
In a rising market, the opportunity cost of waiting to save a full 20% deposit may exceed the PMI cost. If a property increases 7% while you save an extra 5% deposit, you may pay more overall. Model both scenarios with this calculator and the compound interest calculator.
LTV and first home buyer schemes
FHA loan program
The FHA loan program allows eligible first home buyers to purchase with a 5% deposit (95% LTV) without paying PMI. The government guarantees up to 15% of the property value, but this is not cash — it is a contingent guarantee only. You still borrow 95% of the purchase price. Income and price caps apply.
VA loan program
Single parents can access the VA loan program with a 2% deposit (98% LTV) without PMI, subject to income and price caps.
Using LTV to time refinancing decisions
LTV and refinancing
When your LTV falls below 80% through repayments or property value increase, you may qualify for lower interest rates and can drop PMI on any top-up borrowing. Tracking your current LTV helps identify the right time to refinance.
How to calculate current LTV
Current LTV = (Outstanding loan balance ÷ Current property value) × 100. If you owe $420,000 on a property now worth $600,000, your LTV = 70%. This may qualify you for a better rate tier at your lender or a competitor.
Frequently asked Frequently asked questions
What is LTV?
LTV stands for Loan-to-Value Ratio: your loan amount as a percentage of the property value. A $480,000 loan on a $600,000 property = 80% LTV. The critical threshold is 80% — above this, lenders typically require Private Mortgage Insurance (PMI) (PMI).
What is Private Mortgage Insurance (PMI) (PMI)?
PMI protects the lender if you default. It is payable by you when your LTV exceeds 80%. Cost varies by lender and LTV — at 90% LTV on a $600,000 loan, PMI typically costs $10,000–$18,000. Despite the name, it provides no benefit to you as the borrower.
Can I avoid PMI without a 20% deposit?
Yes — through the FHA loan program (5% deposit, government guarantees the rest), a guarantor loan (parents use home equity as additional security), or some profession-specific lending policies (some lenders waive PMI for doctors, lawyers, and other high-income professionals).
Where these figures come from
Property and mortgage figures on this page are drawn from The Federal Reserve (rate data), the Consumer Financial Protection Bureau (mortgage rules), The IRS (property-related tax deductions), and HUD.
- US mortgage rates — Federal Reserve / FRED — 30-Year Fixed Mortgage Average.
- Mortgage & closing rules — CFPB — Owning a Home.
- Home mortgage interest deduction — IRS Topic 504 — Home Mortgage Points.
- Property tax deduction (SALT cap) — IRS Topic 503 — Deductible Taxes.
- Capital gains on home sale ($250k/$500k) — IRS Topic 701 — Sale of Your Home.
- FHA & federal housing programs — HUD — US Department of Housing and Urban Development.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.