How much of a property's value are you financing with the mortgage? The LTV (Loan-to-Value ratio) is the metric banks and lenders use to answer, and it is decisive for obtaining the mortgage and on what terms. This calculator determines it from price, down payment and appraisal: it calculates the loan amount, the LTV, the combined LTV, your equity share and how much extra to pay to reach a target threshold. It is the right tool to understand your position before applying for property financing.

What the LTV (loan-to-value) is

The LTV is the ratio between the loan amount and the property value, expressed as a percentage. An LTV of 80% means the mortgage covers 80% of the home's value and you put the remaining 20% as down payment. It is one of the most important metrics in property lending: it measures how much risk the lender takes. The higher the LTV, the higher the risk for the bank, because in case of default it recovers a larger share of the value by selling the property.

Why lenders look at the LTV

The LTV indicates how much "cushion" the bank has in case of problems. With a low LTV, the property is worth much more than the residual debt: even if the market falls, the bank recovers the loan by selling the home. With a high LTV, the margin is thin and the risk grows. That is why the LTV directly influences mortgage approval, the interest rate offered and the need for insurance: a low LTV opens to the best terms, a high one worsens them or blocks the financing.

The 80% threshold and insurance

The most important threshold is 80%. Below this level, insurance is generally not needed and you get the best terms. Above 80%, many lenders require insurance that protects the bank in case of default, at the borrower's expense, increasing the cost of the financing. Reaching or staying below 80% LTV — by paying a down payment of at least 20% — is therefore an important goal for homebuyers, and the calculator tells you exactly how much is missing.

Price vs appraised value

A crucial detail: lenders calculate the LTV on the lower of the purchase price and the appraised value. If you buy at €300,000 but the appraisal estimates €280,000, the bank uses €280,000 as the base, raising the effective LTV. A low appraisal can therefore push the LTV beyond the thresholds and require a larger down payment. The calculator accounts for this: enter both the price and the appraisal to see the real LTV the lender will use.

How the calculator works

Enter the property price, the down payment, any second loan, the appraised value and the target LTV threshold. The calculator determines the loan amount (price minus down payment), calculates the LTV on the reference value, adds the second loan for the combined LTV, derives your equity and tells you how much extra to pay to reach the threshold. The verdict places the LTV relative to typical lending thresholds.

The values you need

The property price is the purchase price. The down payment is the sum you put from your own pocket. The second loan is any additional loan secured by the same property. The appraised value is the value estimate made for the bank. The target LTV threshold is the level you want to reach, typically 80% to avoid insurance. If you do not have an appraisal, enter the same value as the price.

The loan amount

The loan amount is how much you need to borrow: the property price minus the down payment. It is the numerator of the LTV. The higher the down payment, the lower the loan and the lower the LTV. Paying a larger down payment is the most direct way to reduce the LTV and get better terms. The calculator starts here to derive all the indicators, showing you the direct relationship between the down payment you put and the risk perceived by the bank.

The LTV

The LTV is the key number: the loan divided by the reference value. Under 60% you are in an excellent position, with the best terms; up to 80% you are in a good position, usually without insurance; between 80% and 90% insurance is often required; over 90% the terms worsen and over 95% the financing becomes difficult. The calculator places you immediately relative to these thresholds, telling you where you stand.

The combined LTV (CLTV)

The combined LTV (CLTV, Combined Loan-to-Value) considers all the financing secured by the property, not just the primary mortgage. If you have a mortgage and a second loan (for example a home equity loan), the CLTV sums them and relates them to the value. It is relevant because lenders assess the total exposure on the property: a mortgage at 80% seems fine, but with a second loan the CLTV can rise to 95% or more, completely changing the risk profile.

The equity share

The equity share is the part of the property value that is actually yours, not financed by debt: value minus all the financing, as a percentage. It is the complement of the combined LTV: if the CLTV is 80%, your equity is 20%. Equity is your wealth in the home, which grows as you repay the mortgage or the property appreciates. A large equity share is a solid position; negative equity means you owe more than the home is worth.

The amount for the target threshold

The amount for the threshold tells you how much extra down payment you would need to bring the LTV to the threshold you indicated (typically 80%). If your LTV is at 90% and you want to go down to 80%, the calculator computes how much to increase the down payment to hit the goal. It is very useful when buying: it tells you exactly how much additional capital you need to avoid insurance or access a better rate, turning an abstract threshold into a concrete amount.

The LTV thresholds and terms

How the LTV influences access to the mortgage and the terms:

80% is the key threshold: below you get the best terms, above the cost of the mortgage grows.

Down payment and resulting LTV

How much down payment is needed for each LTV level on a €250,000 property:

Every extra 10% of down payment lowers the LTV by 10 points: the down payment is the direct lever on the LTV.

LTV vs CLTV vs equity

What each indicator measures:

LTV and equity are complementary: together they cover 100% of the property value.

How to reduce the LTV

To lower the LTV and get better terms you have several levers: paying a larger down payment is the most direct; negotiating the price reduces both the price and the needed loan; choosing a less expensive property relative to your available down payment naturally lowers the LTV. Over time, the LTV falls as you repay the loan capital and if the property appreciates, and that is precisely how you access refinancing at better terms or eliminate the insurance.

Common mistakes

• Calculating the LTV on the price, ignoring a lower appraisal.
• Forgetting the second loan in the CLTV calculation.
• Aiming for a down payment just under 20%, staying above the 80% threshold.
• Not considering accessory costs (notary, taxes) beyond the down payment.
• Thinking the LTV does not change: it falls by repaying the loan and with appreciation.

How to use the calculator

Enter price, down payment, any second loan, appraisal and target threshold. Read the LTV and compare it with the thresholds. Try different down payment amounts to see how the LTV changes and how much is needed to go under 80%. Use the amount for the threshold to know exactly how much additional capital takes you to the goal. It is the quickest way to know your position before applying for a mortgage and to plan the right down payment.

Practical example

You buy a €250,000 property with a €50,000 down payment, no second loan and an appraisal of €250,000, aiming for an 80% LTV threshold. The result: a loan of €200,000, an LTV of 80%, a combined LTV of 80%, an equity share of 20% and €0 extra to pay (you are already at the threshold), with the verdict "good LTV: usually no insurance, good terms". You are exactly at 80%, the ideal position to avoid insurance. Enter your numbers for your real situation. The thresholds and insurance vary by country and lender; the LTV uses the lower of price and appraisal. It is an informational estimate.

Frequently asked questions

What is the LTV (loan-to-value)?

It is the ratio between the loan amount and the property value, as a percentage. An LTV of 80% means the mortgage covers 80% of the value and you put 20% down. It measures the lender's risk.

How is the LTV calculated?

You divide the loan amount by the property's reference value and multiply by 100. The reference value is the lower of the purchase price and the appraised value.

What is a good LTV?

Under 80% is considered good and usually avoids mortgage insurance. Under 60% is excellent, with the best terms. Over 90% the LTV is high and the financing becomes more expensive and difficult.

Why is 80% an important threshold?

Because many lenders require mortgage insurance for LTV above 80%, at the borrower's expense. Staying under 80% — with a down payment of at least 20% — avoids this cost and opens to the best terms.

What is the combined LTV (CLTV)?

It is the LTV that considers all financing secured by the property, not just the primary mortgage. If you have a mortgage and a second loan, the CLTV sums them. Lenders assess the total exposure, so the CLTV matters.

Why use the lower of price and appraisal?

Because the lender wants to protect itself: if the appraisal is below the price, it uses the lower value as the LTV base, so as not to finance more than the property is really worth according to its estimate.

What is home equity?

It is the part of the property value that is actually yours, not financed by debt: value minus all financing. It is the complement of the combined LTV. It grows by repaying the mortgage and with appreciation.

How can I reduce the LTV?

By paying a larger down payment, negotiating the price or choosing a less expensive property relative to your down payment. Over time, the LTV falls by repaying the loan capital and if the property appreciates.

What does negative equity mean?

It means you owe more than the property is worth: the financing exceeds the value. It happens with LTV over 100%, for example after a price drop. It is a risky position that limits the ability to refinance or sell.

Does the LTV change over time?

Yes: it falls as you repay the loan capital, and changes with the property value. If the home appreciates, the LTV falls further, allowing you to eliminate the insurance or refinance at better terms.

What does the calculation include, besides the down payment?

The calculator considers price, down payment, any second loan and the appraisal. Remember that beyond the down payment you need accessory costs (notary, taxes), which do not reduce the LTV but must still be paid.

Does it work for any country and currency?

Yes, the LTV calculation is universal and uses the values in your currency. The exact thresholds and insurance rules vary by country and lender, but 80% is a widely used reference internationally.

Updated July 2026