Loan-to-Value (LTV) Calculator
Quickly compute your loan-to-value (LTV) ratio, combined CLTV, and home equity from your mortgage balances and property value — or plan the loan amount and down payment needed to hit a target LTV. Enter an appraised value, purchase price, and up to two mortgages.
Check Your Loan-to-Value Ratio, CLTV and Equity
LTV Formula
Where:
- \(\text{LTV}\) — loan-to-value ratio of the first mortgage alone (%);
- \(\text{CLTV}\) — combined loan-to-value, counting every lien on the property (%);
- Property value — the lower of the appraised value and the purchase price, since that is the basis lenders use.
The first three formulas describe your current position; the last one works backwards from a target LTV to find the largest first mortgage (and the cash needed) that fits it.
LTV – Calculation Example
Example: a home appraised at $400,000 carries a first mortgage of $320,000 and no second mortgage or HELOC. The purchase price field is left at 0, so the appraised value is the basis.
\[ \text{LTV} = \frac{320{,}000}{400{,}000} \times 100\% = 80.0\% \\ \text{CLTV} = \frac{320{,}000 + 0}{400{,}000} \times 100\% = 80.0\% \\ \text{Home equity} = 100\% - 80.0\% = 20.0\% \; (\$80{,}000) \]
Result: LTV = 80.0%, CLTV = 80.0%, home equity = 20.0% ($80,000), total mortgage debt = $320,000, and the cash position at close is $80,000. At exactly 80% LTV the borrower can request private mortgage insurance (PMI) removal on a conventional loan.
How to Use the LTV Calculator
- Pick the Mode: Check my LTV shows where you stand today; Plan for a target LTV works backwards to the loan size and cash you need.
- Enter the Appraised value (or your best current market estimate). Lenders use the lower of this and the purchase price, which you can enter in Purchase price — leave 0 to skip it.
- Under Loans, choose whether the loan is given as a Loan amount or a Down payment. Then fill in the First mortgage amount (or the Down payment, as a % of price or a $ amount) and any Second mortgage / HELOC balance — enter 0 if none.
- In planning mode, set a Target LTV (80%, 90%, 97%, 96.5%, 100%, or Custom) and check Count second mortgage in the target if the cap applies to the CLTV of all loans combined rather than the first mortgage alone.
- Read the results: LTV — first mortgage, CLTV — all mortgages, Home equity, and — in planning mode — the Maximum first mortgage at the target and Required down payment, plus a table of typical loan program maximums.
What the Loan-to-Value Ratio Means
LTV is the single most important number a mortgage lender looks at after your credit score and debt-to-income ratio. It measures how much of the property's value is financed: an 80% LTV means the loans cover four fifths of the value and you own the remaining fifth as equity. From the lender's perspective, a lower LTV means a safer loan — if you default, there is more cushion between the debt and what the property can be sold for, so low-LTV borrowers get better rates and easier approvals.
The most famous threshold is 80%. On conventional loans, any LTV above 80% requires private mortgage insurance, which typically costs 0.3–1.5% of the loan balance per year. Once your LTV falls to 80% you may request PMI removal, and at 78% of the original value the servicer must cancel it automatically under the Homeowners Protection Act. This is also the standard cap for cash-out refinancing, so the 80% line matters for both purchases and refinances.
CLTV — combined loan-to-value — adds up every lien: a first mortgage of 75% plus a HELOC of 10% gives an 85% CLTV even though the first-lien LTV is only 75%. Home equity lenders price against CLTV, and most cap combined financing at about 85%. Note that program maximums work differently: conventional purchases go to 97% LTV, FHA to 96.5%, while VA and USDA loans allow 100% for eligible borrowers. The calculator's program table shows how your numbers fit each of these caps.
Home equity is the mirror image of LTV: a 75% LTV means 25% equity. Lenders love to see it grow over time — through amortization, extra principal payments, or appreciation — because rising equity unlocks better refinance rates, HELOC eligibility, and the ability to drop PMI. See our home equity calculator for a deeper look at that side of the balance sheet.
LTV Thresholds at a Glance
| LTV | What it means |
|---|---|
| 100%+ | Negative or zero equity — only VA/USDA purchase loans reach 100% |
| 96.5–97% | Maximum for FHA (96.5%) and conventional (97%) purchases |
| 80.01–95% | PMI required on conventional loans; request removal at 80% |
| 80% | No-PMI zone for conventional loans; standard cash-out refinance cap |
| 78% | PMI terminates automatically (of original value) |
| 85% CLTV | Typical maximum combined financing for home equity loans and HELOCs |
Assumptions and Practical Tips
- The lower value wins. If the purchase price is higher than the appraisal, the calculator uses the appraisal — exactly what lenders do. A short appraisal raises your effective LTV and can kill a deal, so be conservative with your value estimate.
- Use current balances, not the original loan. For an existing home, enter today's principal balance (from your latest statement), not the amount you originally borrowed; amortization and extra payments lower your true LTV.
- Closing costs are not counted. The cash figure is the down payment or equity gap only; add closing costs separately with our closing cost calculator.
- LTV is one of three gates. Even a 60% LTV will not close if your debt-to-income ratio or credit score is out of range. Check those before assuming a loan size is safe.
- Program rules change. The program table shows typical maximums, not guarantees — lenders apply their own overlays, and government-backed programs such as the FHA and VA loans carry their own insurance or funding-fee structures that offset a high LTV.
- Planning mode ignores rate effects. It computes the loan that fits a target LTV, but a larger down payment may also improve your quoted rate — the real savings can exceed the PMI line alone.
Frequently Asked Questions
What is a good loan-to-value ratio?
80% or lower is considered good — it qualifies you for the best conventional rates, avoids PMI, and opens the door to cash-out refinancing and home equity products. Anything from 80.01–95% is workable but carries PMI on conventional loans. Perfectly normal purchases routinely sit at 90–97%, so a high starting LTV is not a problem; the goal is to get below 80% over time to unlock cheaper financing.
How can I lower my LTV faster?
There are three levers. Pay extra principal — every extra dollar reduces the balance directly, and extra payments early in the loan go almost entirely to principal. Let the property appreciate — time does the work, though you need a new appraisal or reliable valuation to prove the higher value. A larger down payment before purchase starts you lower. You can also make one big annual lump-sum payment from bonuses or tax refunds.
What value should I use if I haven't had an appraisal?
For an existing home, use your best current market estimate: recent comparable sales in your neighborhood, a realtor's opinion, or online estimates like Zillow's. Be conservative — online estimates can be off by 10% or more, and lenders will order their own appraisal anyway. For PMI removal or a refinance, only an official lender-ordered appraisal counts, so your estimate is just a preview of where you may land.
What is HCLTV and how is it different from LTV and CLTV?
HCLTV stands for high-combined LTV, sometimes called HLTV. The difference is how a HELOC is counted: CLTV uses your current drawn HELOC balance, while HCLTV assumes you draw the entire available line, even if the balance is $0. If you have a $100,000 first mortgage and an untouched $50,000 HELOC on a $300,000 home, LTV is 33%, CLTV is 33%, but HCLTV is 50%. Some lenders price against HCLTV.
Can LTV be over 100%?
Yes — that is called negative equity, or being "underwater," which happens when home values fall or you borrowed at 100% and closing costs rolled in. Refinancing becomes very difficult and selling would leave you owing the difference after the sale. The main fixes are waiting for appreciation and extra principal payments. Some underwater borrowers use a partial claim, modification, or, in rare cases, a foreclosure-alternative program.
How is LTV calculated on a refinance instead of a purchase?
On a refinance there is no purchase price, so the appraisal alone sets the value: \( \text{LTV} = \frac{\text{new loan balance}}{\text{appraised value}} \). Most lenders require a fresh appraisal even if you bought recently. Cash-out refinances cap at 80% LTV on conventional and FHA loans, while rate-and-term refinances can go higher — up to 97% conventional or 97.75% FHA. To find your rate-and-term refi potential, enter the existing payoff amount and a realistic value estimate.
Does my LTV update automatically as the loan is paid down?
Your true LTV improves every month as principal is paid and (usually) as the home appreciates, but nothing happens automatically with PMI. Under the Homeowners Protection Act, the servicer must cancel PMI when the scheduled balance reaches 78% of the original value — but reaching 80% sooner, either via extra payments or appreciation, requires that you send a written removal request, often with a new appraisal. Check your balance yearly and track your ratio.