The LTV Formula

This LTV calculator divides the loan amount by the property's appraised value: a $300,000 loan on a $400,000 home is 75% LTV. The complement — 100% minus LTV — is your equity share, which grows as you pay down the loan or the home appreciates.

The 80% Threshold

Crossing 80% LTV is the critical line: below it you have 20% equity and no PMI; above it, conventional lenders require private mortgage insurance. The calculator flags the threshold and estimates the monthly PMI cost at a typical 0.35% annual rate.

Why Lenders Care

Higher LTV means more leverage and less cushion if prices fall, so lenders price in the risk with PMI, higher rates, or stricter terms. Knowing your LTV — before buying or refinancing — tells you what kind of deal you can expect.