Enter the purchase price and down payment of a loan into the LTV Calculator. The LTV Calculator will display the LTV % and loan amount.

## LTV Formula

The following formula is used to calculate the LTV Ratio.

LTV = L / L+D * 100%

- Where LTV is the loan to value %
- L is the loan amount
- D is the down payment.

In other words, the purchase price is equal to the loan amount plus the down payment.

## LTV Definition

LTV is short for loan to value. A loan to value is a measure of the value of loan and the actual value of a product.

## How to calculate LTV?

How to calculate LTV?

**Determine the original loan amount**This will be the original purchase price of the item you wish to buy. For example, if a house costs 500,000 dollars the loan amount would also need to be $500,000.00.

**Determine your desired down payment**This will be the amount of money you wish to put “down” on the loan. In essence, this amount will get subtracted from the loan. For mortgages, a minimum of 10% is recommended.

**Calculate the LTV**Enter the purchase price and down payment into the formula to calculate the loan to value %.

## FAQ

**What is LTV?**

LTV stands for loan to value. It is a ratio of the amount of a loan to the actual price of a good. For example, if a house costs 5$ and a down payment of 1$ is made, the LTV would be 80%.

**What is a good loan to value %.**

That depends on what is being purchased. The lower the LTV the less the loan is compared to the purchase price. This will lead to less interest paid over time.