What does loan-to-value mean?
Loan-to-value, or LTV, is the modeled loan amount divided by the selected property value. This calculator expresses the result as a percentage and keeps the value basis explicit.
US · USDTransparent educational estimate
Loan-to-Value (LTV) Calculator
Calculate a modeled first-lien loan as a percentage of one explicitly selected property value. Compare an editable maximum LTV, estimate supported principal, and see the arithmetic equity or reduction needed to reach the target.
What this baseline models
- Purchase-price, current-value, or ARV basis
- Forward LTV and editable maximum-LTV inverse
- Current and target modeled equity
- Explicit valuation and lender-definition warnings
Local workspace
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Compare debt with one property value
Property value and loan assumptions
Select purchase price, current market value, or after-repair value as the denominator. Enter a modeled first-lien loan and an editable maximum LTV for comparison.
Loan-to-value ratio
75.00%
Loan amount divided by selected purchase price
Target status
Below selected maximum
Compared at cent precision with the editable 80.00% maximum
Maximum loan at target
$320,000.00
Selected property value multiplied by maximum LTV
Current modeled equity
$100,000.00
Selected value minus the entered loan amount
Remaining loan capacity
$20,000.00
Nonnegative capacity before reaching the selected maximum
Additional reduction or equity required
$0.00
Modeled amount needed to reach the selected maximum
Loan-to-value detail
The explicit value basis, entered debt, editable target, and modeled equity requirement for this scenario.
- Selected value basis
- Purchase price
- Selected property value
- $400,000.00
- Entered loan amount
- $300,000.00
- Selected maximum LTV
- 80.00%
- Minimum modeled equity at target
- $80,000.00
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Assumption checks
Deterministic checks based only on this scenario's inputs and outputs.
Purchase price may not be the lender's value
A lender or loan program may use an appraisal, the lower of price and appraised value, or another adjusted value. This calculation uses the entered purchase price only.
Selected-value sensitivity
Each row reruns the same engine while changing only the selected property value by ±5% and ±10%. The loan amount and editable maximum LTV remain fixed.
Selected-value sensitivity details
| Value change | Selected value | LTV | Maximum loan | Target status |
|---|---|---|---|---|
| -10.00% | $360,000.00 | 83.33% | $288,000.00 | Above selected maximum |
| -5.00% | $380,000.00 | 78.95% | $304,000.00 | Below selected maximum |
| Base | $400,000.00 | 75.00% | $320,000.00 | Below selected maximum |
| +5.00% | $420,000.00 | 71.43% | $336,000.00 | Below selected maximum |
| +10.00% | $440,000.00 | 68.18% | $352,000.00 | Below selected maximum |
Formula reference
Every output is explainable
Money is displayed in USD and rates are entered as percentages where applicable. Formula version loan-to-value@1.0.0 stays attached to the result.
Loan-to-value ratio
Loan amount ÷ Selected property value
The modeled first-lien principal or balance divided by the explicitly selected purchase-price, current-market-value, or after-repair-value input.
Maximum loan at target
Selected property value × Maximum LTV
The modeled loan principal supported by the selected property value and editable maximum-LTV assumption.
Current modeled equity
Selected property value − Loan amount
The arithmetic difference between selected value and modeled loan amount. It can be negative and is not an estimate of sale proceeds.
Minimum equity at target
Selected property value − Maximum loan at target
The property-value amount not financed at the selected maximum LTV. It excludes closing costs, reserves, fees, and other cash requirements.
Remaining loan capacity
Maximum of (Maximum loan at target − Loan amount) and $0
The nonnegative amount by which the modeled loan could increase before reaching the selected maximum at cent precision.
Additional reduction or equity required
Maximum of (Loan amount − Maximum loan at target) and $0
The modeled principal reduction or equivalent additional equity needed to reach the selected maximum at cent precision.
Example scenario
An explicit purchase-price LTV example
The editable example selects a $400,000 purchase price, a $300,000 modeled loan, and an 80.00% maximum LTV. That produces a 75.00% LTV, $100,000 of modeled equity, and $20,000 of remaining capacity.
Open the example in the calculatorSelected purchase price
$400,000
Modeled loan amount
$300,000
Calculated LTV
75.00%
Maximum loan at 80%
$320,000
FAQ
Common questions
Should I use purchase price, current value, or ARV?
Use the basis that matches the question you are analyzing, then confirm how a specific lender defines value. Purchase price is historical or contractual, current market value is a present estimate, and after-repair value is a projection contingent on future work and market conditions.
How does the calculator estimate the maximum loan?
It multiplies the explicitly selected property value by the editable maximum LTV. It also shows the modeled equity at that target and any remaining loan capacity or additional principal reduction or equity required.
Does an LTV below the selected maximum mean I qualify?
No. The target is an editable comparison assumption, not a lender quote or approval threshold. Lenders may use different valuations, lien definitions, borrower requirements, reserves, property rules, and underwriting adjustments.
Guide, methodology, and related calculators
Read the supporting methodology, then compare this result with another view of income, financing, or project returns. Each calculator uses its own transparent assumptions.