Know Your Risk Number

Loan-to-Value Calculator

Calculate your LTV ratio and understand your equity position before buying, refinancing, or borrowing against your home.

Precision Gauge

Loan-to-Value (LTV) Calculator

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Total Debt$315,000
Remaining Equity$135,000

Loan-to-Value (LTV)

70.0%
Strong Equity Position
Your LTV is 80% or lower. You are in a great position for favorable rates and should not require Private Mortgage Insurance (PMI).
0%80% Limit100%

Know Your Risk Number

Loan-to-value ratio shows how much of a property’s value is covered by debt.

An LTV calculator helps you compare your loan amount with the home’s value, so you can understand equity, lender risk, PMI impact, refinance strength, and possible borrowing room.

LTV Formula

LTV is calculated like this:

LTV = Loan Amount ÷ Property Value × 100

If your home is worth $400,000 and your loan balance is $320,000, your LTV is 80%.

Buy or Refinance

LTV matters in both purchase and refinance decisions.

For buyers, it shows how much of the home price is financed. For homeowners, it shows how much equity remains after years of payments or market value changes.

Lower LTV

A lower LTV usually means stronger equity.

It may help with better loan options, lower lender risk, easier refinance approval, and less chance of needing mortgage insurance.

Higher LTV

A higher LTV means more of the property is financed.

This can increase lender risk, affect approval terms, limit cash-out options, or trigger PMI on some conventional loans.

Key Inputs

For a clear estimate, enter:

  • Property value
  • Appraised value
  • Loan amount
  • Mortgage balance
  • Down payment
  • Second mortgage
  • HELOC balance

CLTV Check

Combined loan-to-value, or CLTV, includes all loans secured by the property.

This may include a first mortgage, second mortgage, and HELOC balance. CLTV is important when applying for a HELOC, home equity loan, or cash-out refinance.

LTV Planning Note

A Loan-to-Value (LTV) Calculator helps you understand how much of your home is financed and how much equity you may have. By checking LTV before buying, refinancing, or using home equity, you can make cleaner decisions and avoid borrowing beyond your comfort zone.

Quick Answers

How is Loan-to-Value (LTV) calculated?

LTV is calculated by dividing your total loan amount by the appraised property value, then multiplying by 100 to get a percentage. For example, a $320,000 loan on a $400,000 home is an 80% LTV.

Why is an 80% LTV important?

For most conventional loans, having an LTV above 80% means you will be required to pay Private Mortgage Insurance (PMI). Once your LTV drops to 80% (or 78% automatically), you can usually request to have PMI removed.

What is the difference between LTV and CLTV?

LTV measures just your primary first mortgage against the home's value. CLTV (Combined Loan-to-Value) includes ALL loans secured by the property, including second mortgages and HELOC balances.

Can my LTV go over 100%?

Yes. If your property value drops significantly below what you owe on your mortgage(s), your LTV will exceed 100%. This is known as having negative equity or being 'underwater' on your mortgage.