Leverage and down payment check
Loan-to-Value (LTV) Calculator
Calculate loan-to-value before you compare DSCR lenders, conventional mortgages, or investment property loan quotes. LTV shows how much of the property is financed and how much equity protects the lender.
Use the lower of purchase price or appraised value when a lender requires it. That one detail can change the real LTV on a deal.
How lenders use LTV
LTV is not a profit metric. It is a leverage metric. A property can have a strong DSCR and still be difficult to finance if leverage is too aggressive for the lender's box.
For investment properties, LTV usually works together with DSCR, reserves, borrower credit, property type, and market liquidity.
LTV formula
LTV = loan amount / property value x 100.
Example: a $320,000 loan on a $400,000 property equals 80% LTV.
LTV ranges
| LTV | What it signals | Investor note |
|---|---|---|
| 70% or lower | Conservative leverage | More equity, less financing pressure. |
| 70%-80% | Common lender range | Often easier to pair with DSCR underwriting. |
| 80%-90% | Higher leverage | Pricing, PMI, or lender restrictions may matter. |
| 90%+ | Aggressive leverage | Expect fewer options and tighter conditions. |
Use it with DSCR
A deal is cleaner when LTV and DSCR both make sense. After checking leverage here, run the DSCR loan calculator to test whether rent can support the payment.
Choose the next calculation
What are you trying to solve?
Quick answers
Frequently asked
How do you calculate LTV?
LTV is calculated by dividing the loan amount by the property value, then multiplying by 100.
Is 80% LTV good?
An 80% LTV is a common mortgage benchmark, but the right level depends on loan type, DSCR, reserves, credit, and property risk.