Loan-to-Value Calculator

How this result is built

Divide a loan by a property value and read the equity share that remains.

Loan-to-value is the loan divided by the value. Equity is what is left. Lenders use the ratio to decide mortgage insurance, cash-out limits, and sometimes the rate itself.

What the opening example is for

Value should be a number a buyer or an appraisal would recognize. Using the price you wish the home would fetch makes the ratio look safer than the file will.

The walkthrough below uses the numbers already sitting in Loan-to-Value Calculator. Press Calculate and the headline should match this page. Then put your own figures in. The math does not run until you press the button, and Clear hides the result.

What each field is doing

The “Property value” line on Loan-to-Value Calculator starts at $480,000.00. The other fields stay put while you change this one. That is the clean way to see what this line is doing inside the result.

Loan-to-Value Calculator treats “Loan balance” as its own entry, and the form opens with $336,000.00. If the label is a rate, type the annual figure the contract uses. If it is money, type the amount that will actually move, not a rounded hope.

The opening result, line by line

Press Calculate on the opening form and Loan-to-value is 70.00%. That is the number the rest of this section is talking about.

Equity is $144,000.00 when you run the opening figures on Loan-to-Value Calculator. That line is part of the same calculation as the headline. It is not a second balance you can spend on top of the result. Change one input and press Calculate if you want to see whether this line moves.

On this opening pass, equity share is 30.00%. That line is part of the same calculation as the headline. It is not a second balance you can spend on top of the result. Change one input and press Calculate if you want to see whether this line moves.

How those lines were produced

At 80% or below, many loans no longer require mortgage insurance.

The formula line on the page is LTV = Loan ÷ Value. It is there so you can see the relationship the buttons are using. A schedule, when the page draws one, is that same series written row by row.

A second pass changes only “Property value”, from $480,000.00 to $528,000.00. Loan-to-value moves from 70.00% to 63.64%. Nothing else on the form was edited, so the gap between those two results is the effect of that one field on Loan-to-Value Calculator. If the gap is tiny, this page is not very sensitive to that entry. If the gap is large, get that entry from a document before you plan around the result.

What this page will not claim

Loan-to-Value Calculator does not know your credit score, the county’s tax bill, or what an appraiser will say. Type the price, the loan, and the escrow you were quoted. Compare the payment with the loan estimate, and treat a small rounding difference as normal.

Loan-to-Value Calculator stops at its own formula. When the next question is different, open Home Equity Loan Calculator (A second loan, with the combined LTV beside it.); Mortgage Calculator (Principal, interest, tax, insurance, PMI, and HOA in one payment.); Refinance Calculator (Break-even months against the interest you still pay.). Do not add those results to this one as if they were the same kind of dollar.

Check the result before you use it

Start on Loan-to-Value Calculator by reading the labels, not the headline. The opening labels are Property value ($480,000.00), Loan balance ($336,000.00). If a label is not the fact you have, the result cannot turn into that fact later. The illustration on the form lands on 70.00%. When you press Calculate and see that same figure, the button and this explanation are using one formula.

Change one field at a time. Write down the headline, edit a single line, and press Calculate again. A large jump means that line carries the result. A line that does not move is a line the formula ignores, which is a reason to confirm you opened the right page. Loan-to-Value Calculator is built for one job: Loan, value, and the equity in between. The description on the page says the same thing in a sentence: Divide a loan by a property value and read the equity share that remains.

When the paperwork disagrees

Then hold the headline next to a source outside the site. That source might be a loan estimate, an account statement, a pay stub, or the public limit named in the methodology. A few cents of difference on a long schedule is ordinary rounding. A different rate, a fee you never typed, or a tax the form does not ask for is not rounding. Correct the input. Do not average the page with the paperwork.

When the outside source still disagrees, Loan-to-Value Calculator has reached the edge of what it will claim. It will not phone a lender, pull a county record, or apply a credit you left blank. Send the calculator name, every input, and the result you expected through the contact page if you think the formula itself is wrong. Until that is settled, read 70.00% as the output of the fields above and nothing else.

FAQs