Loan to Value (LTV) Calculator
Updated on 22 Oct 2026 · Checked by Aotob
Borrowing $300,000 against $400,000 is a loan to value of 75%.
Your equity is $100,000. Lenders use LTV to set your rate and whether you need mortgage insurance: the lower it is, the better the deal.
Loan to value
75%
At 75% you are under every common threshold in the United States.
Show the working
LTV = 300,000 ÷ 400,000 = 75%
Common LTV thresholds in the United States
| LTV | What it means | Most you can owe | Pay down |
|---|---|---|---|
| 97% | Highest for most conventional loans | 388,000 | — |
| 96.5% | Highest for an FHA loan | 386,000 | — |
| 80% | No PMI on a conventional loan | 320,000 | — |
| 78% | PMI cancels automatically | 312,000 | — |
Questions people ask
What is loan to value?
Your mortgage balance as a share of the property’s value. A $300,000 loan on a $400,000 home is 75% LTV, which means you have 25% equity.
What is combined LTV?
All loans secured on the property together, such as a first mortgage plus a home equity loan or HELOC, divided by its value. Lenders use it for second mortgages and refinancing.
Why does LTV matter?
Lenders price mortgages in LTV bands. Getting under a threshold, such as 80% in the US, Canada and Australia, usually removes mortgage insurance and brings a lower rate.
Which value should I use?
The lower of the price and the valuation when buying, or a recent appraisal or valuation when you remortgage or refinance.
Updated 22 Oct 2026Source: CFPB: what is a loan-to-value ratioChecked by AotobThresholds are the common ones in each country. Your lender’s bands may differ.Report an issue