About the Loan-to-Value (LTV) Calculator
This loan-to-value (LTV) calculator measures how much of your home is financed. LTV is the first mortgage divided by the property value. Combined LTV (CLTV) adds any second mortgage or the amount drawn on a home equity line, and HCLTV uses the full HELOC credit limit instead of the drawn amount. Lenders use these ratios to price loans, decide whether you need mortgage insurance, and cap cash-out refinances and home equity loans.
Use it when buying (value = the lower of price or appraisal), refinancing, applying for a HELOC, or checking whether you can cancel PMI. Enter a target LTV to see how much more you could borrow before reaching that limit — for example 80% for most cash-out refinances or 85% for many home equity lines.
For a purchase, value is usually the lower of the sale price and the appraised value. For a refinance it is the new appraisal.
With the default inputs, the loan-to-value (ltv) is 75%. Change any value above to recalculate instantly.
How to use the loan-to-value (ltv) calculator
- 1Enter the appraised value (or purchase price if lower).
- 2Enter your first mortgage balance.
- 3Add any second mortgage or HELOC balance, and the HELOC limit if you have one.
- 4Set the maximum CLTV your lender allows.
- 5Read your LTV, CLTV, HCLTV and how much equity you can access.
Formula and method
Each ratio divides loan balances by the property value V and is shown as a percentage. LTV uses only the first mortgage L₁. CLTV adds the second lien or the amount drawn on a HELOC, L₂. HCLTV replaces the drawn amount with the full HELOC credit limit H, because the borrower could draw the whole line.
Equity is value minus all balances. The amount you could still borrow is the value times the target CLTV t, less what you already owe, floored at zero. Conventional loans generally need PMI when LTV is above 80%.
- V
- Property value
- L₁
- First mortgage balance
- L₂
- Second mortgage or HELOC balance
- H
- HELOC credit limit
- t
- Target maximum CLTV
Worked examples
$400k home, $300k mortgage
$300,000 ÷ $400,000 = 75% LTV, so you have $100,000 (25%) of equity and no PMI. At an 80% cap you could borrow $320,000 in total, $20,000 more than you owe.
First mortgage plus a HELOC
LTV is 70%. Adding the $40,000 drawn on the HELOC gives a 78% CLTV, and using the $60,000 line limit gives an 82% HCLTV. At an 85% CLTV cap you could borrow $425,000 in total, $35,000 more.
5% down purchase
A $237,500 loan on a $250,000 home is 95% LTV. Conventional lenders require PMI until the balance falls to 80% of the original value.
Frequently asked questions
What is a good loan-to-value ratio?+
For a conventional mortgage, 80% or lower is the key threshold: it avoids PMI and usually gets better pricing. Lower LTVs (60%–75%) can earn slightly better rates on some loans.
What is the difference between LTV and CLTV?+
LTV counts only the first mortgage. Combined LTV (CLTV) includes every loan secured by the home, such as a second mortgage or HELOC balance, divided by the home’s value.
What is HCLTV?+
Home equity combined LTV (HCLTV) uses the full credit limit of a HELOC rather than the amount currently drawn, because you could borrow the entire line at any time.
What LTV do I need to remove PMI?+
On conventional loans you can ask to cancel PMI when the balance reaches 80% of the original value, and it ends automatically at 78% under the Homeowners Protection Act, if you are current on payments.
What is the maximum LTV for a cash-out refinance?+
Conventional cash-out refinances are generally capped at 80% LTV for a primary home. VA cash-out loans can go higher, and FHA cash-out is capped at 80%.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.