To use the LTV (Loan-to-Value) Calculator, enter the property purchase price, your deposit amount, and the loan amount. Then press the Calculate button to see your LTV ratio and related results.
Calculate your loan-to-value (LTV) for mortgages, PMI elimination, and HELOCs. Or, you can calculate customer lifetime value (LTV) to grow your business. Our free, easy LTV calculator does both.
When you see "LTV Calculator," it could have two very distinct meanings—depending on whether you're discussing loans or customers. Both are important, and both can really impact your money.
1. Loan-to-Value (Financial LTV):
This is a risk factor lenders use to determine the likelihood of lending you money. It shows how much you’re borrowing compared to the value of the asset, usually a home or car. For example, if your home is worth $200,000 and your loan is $160,000, your LTV ratio is 80%. Lenders typically check this ratio before approving mortgages, HELOCs (home equity lines of credit), or refinancing. The lower the LTV ratio, the better your chances of getting a good interest rate and avoiding extra costs like PMI (Private Mortgage Insurance).
2. Customer Lifetime Value (Business LTV):
In business, LTV = customer lifetime value. What this formula doesn't calculate is a loan, but the amount of money a customer will pay into your company over the course of their business with you. For example, if a customer pays $100 a year for five years, then they are worth $500. This number helps companies better understand marketing ROI, budgeting, and building more effective growth strategies.
That's where our free LTV Calculator comes into play. It's made for both business owners and homeowners alike. Whether you want to know if you qualify for PMI removal or if you want to measure how valuable your customers ultimately turn out to be, it gives you exact answers in seconds with no complicated formulas.
Our LTV Calculator is actually free, uncomplicated, convenient to use, precise, and versatile. Since "LTV" means different things depending on what you are computing, the calculator has two parts: one to compute financial loan-to-value and one for business customer lifetime value. A single button click lets you toggle between them.
If you're a homeowner, car buyer, or planning to refinance, this section helps you quickly calculate your loan-to-value ratio (LTV). Your lender will typically use this percentage to decide whether you qualify for a mortgage, a HELOC, or even PMI cancellation.
How it works:
For advanced needs, you can use a broader choice to include a second mortgage or a HELOC, which gives you your total loan-to-value (CLTV). This is especially useful when you already have an existing loan and want to know how much equity you still have.
Example:
If your property is valued at $250,000 and your outstanding loan is $175,000, the LTV ratio = (175,000 ÷ 250,000) × 100 = 70% LTV. That's a healthy ratio that may qualify you for lower interest rates.
If you have a business, this section allows you to determine how much a customer is worth to you in the long run. Having this figure can revolutionize your thinking about marketing and expansion.
How it works:
Example:
If a customer pays you $50 each time, makes four visits per year, and stays with you five years, their lifetime value = $1,000. This will tell you how much you can sensibly spend to get and keep that customer.
Our LTV Calculator isn't just about figures. To get the best out of it, you need to understand what your results indicate. Let's dissect LTV into its two components: customer lifetime value and financial loan-to-value.
Loan-to-value ratio (LTV) is something lenders consider first when you're taking a loan. LTV shows the asset's value as a proportion of the loan.
Formula:
LTV=Loan AmountProperty Value×100LTV = \frac{Loan\\\\ Amount}{Property\\\\ Value} \times 100LTV=Property ValueLoan Amount×100
Assume your mortgage is $180,000 and your property is worth $240,000. Your LTV = 75%.
On the business side, client lifetime value (LTV) is the amount of money a single customer generates for your company over the course of their association with you.
The formula is LTV is = Average Buy Value × Frequency of Purchases × Lifespan of Customers LTV = Average Value \\\\times Purchase Buying Frequency Buying Customer Lifespan LTV = Average Purchase Value × Frequency of Purchases × Lifespan of Customers.
For example, if one of your customers spends $200 per year and you retain them for six years, the lifetime value of the customer = $1,200.
How do I calculate LTV?
There are two types of LTV:
LTV=Loan AmountProperty Value×100LTV = \frac{Loan\ Amount}{Property\ Value} \times 100LTV=Property ValueLoan Amount×100
Example: A $160,000 mortgage on a $200,000 home = 80% LTV.
LTV=Average Purchase Value×Frequency×LifespanLTV = Average\ Purchase\ Value \times Frequency \times LifespanLTV=Average Purchase Value×Frequency×Lifespan
Example: $100 × 4 × 5 years = $2,000 customer lifetime value.
What does 80% LTV mean on a mortgage?
When your loan debt is 80% of the property's market worth, it's known as an 80% loan-to-value. It is lenders' "safe" level. Under 80%, you can maybe avoid PMI or enjoy better interest rates.
How to calculate 75% LTV?
To find 75% LTV, multiply your property value by 0.75. That amount is the maximum percentage of your loan that you can carry and keep your LTV ratio at 75%.
Example: On a $200,000 home, 75% LTV = $150,000 loan.
What does 125% LTV mean?
When you owe more than the property is worth, you have a 125% LTV. For example, if your house is worth $200,000 and your mortgage is $250,000 then your LTV is equivalent to 125%. This is referred to as being in negative equity and usually limits refinancing options.
Your loan-to-value ratio is what gets you to save on mortgages, refinance smartly, and drop PMI. Your customer lifetime value gets you to invest wisely in marketing and expand your business confidently.