Loan-to-Value Calculator
Calculate loan-to-value from your own entered figures.
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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.
What this tool does
Calculate loan-to-value from your own entered figures. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Value is normally the appraised value or purchase price, whichever the lender uses; equity can be negative if loans exceed value.
How to use the Loan-to-Value Calculator
- Enter or select loan amount.
- Enter or select second loan / heloc balance.
- Enter or select property value.
- Read the calculated result; change any measurement to compare alternatives.
Formula
LTV=loan amount/property value×100; combined LTV (CLTV)=(first loan+second loan)/property value×100; equity=value−all loans
- loan
- Loan amount
- second
- Second loan / HELOC balance
- value
- Property value
User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Value is normally the appraised value or purchase price, whichever the lender uses; equity can be negative if loans exceed value.
Worked example
For loan-to-value calculator, the following measurements illustrate the exact method: Loan amount: 360000; Second loan / HELOC balance: 0; Property value: 450000.
Inputs
- Loan amount360000
- Second loan / HELOC balance0
- Property value450000
Result
- Loan-to-value ratio (%)80
- Combined loan-to-value (CLTV) (%)80
- Home equity$90,000.00
- Equity (%)20
- Loan amount at 80% LTV$360,000.00
Results explained
- Loan-to-value ratio (%)
- Loan-to-value ratio (%) from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Value is normally the appraised value or purchase price, whichever the lender uses; equity can be negative if loans exceed value.
- Combined loan-to-value (CLTV) (%)
- Combined loan-to-value (CLTV) (%) from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Value is normally the appraised value or purchase price, whichever the lender uses; equity can be negative if loans exceed value.
- Home equity
- Home equity from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Value is normally the appraised value or purchase price, whichever the lender uses; equity can be negative if loans exceed value.
- Equity (%)
- Equity (%) from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Value is normally the appraised value or purchase price, whichever the lender uses; equity can be negative if loans exceed value.
- Loan amount at 80% LTV
- Loan amount at 80% LTV from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Value is normally the appraised value or purchase price, whichever the lender uses; equity can be negative if loans exceed value.
Frequently asked questions
At or below 80% LTV on a conventional loan you normally avoid private mortgage insurance (PMI), and loans at 80% or less generally price better. Above 80%, expect PMI or a higher rate until the balance falls.
CLTV adds every loan secured by the home — first mortgage plus a HELOC or second mortgage — before dividing by value. Home-equity lenders judge you on CLTV, so a second loan can limit how much more you can borrow.
Lenders generally use the lower of the purchase price and the appraised value for a purchase, and the appraised value for a refinance. If the appraisal comes in low, your LTV rises and terms can change.
They are complements: LTV ≈ 100% minus your down-payment percentage, before financed fees. A 20% down payment gives roughly 80% LTV; 5% down gives roughly 95% LTV.
Yes. Normal principal paydown lowers the loan, and if the home's value rises the ratio falls too — though a lender only recognises a higher value through a new appraisal or an approved valuation.