LTV Calculator

If you borrow $320,000 to buy a $400,000 home, your loan-to-value ratio is exactly 80% — the line where private mortgage insurance usually disappears on a conventional loan and where lenders start offering their best pricing. That single percentage quietly drives your interest rate, whether you owe PMI, how much you can borrow against your home, and whether a refinance even works. This LTV calculator turns a loan amount (or a price and down payment) into your LTV, your combined LTV, your equity, and a clear read on whether PMI is likely.

What loan-to-value (LTV) actually measures

LTV compares how much you owe against how much the property is worth. The lower it is, the more equity you hold and the less risk the lender takes — which is why a low LTV earns lower rates and smoother approvals. A high LTV means you have borrowed most of the value, so lenders charge more, require mortgage insurance, or decline the loan. LTV is the mirror image of your equity stake: 80% LTV means 20% equity.

The LTV formula

The math is simple division turned into a percentage:

If you only know the purchase price and down payment, find the loan amount first: loan = price − down payment. So a $400,000 price with $80,000 down is a $320,000 loan, and 320,000 ÷ 400,000 × 100 = 80%. When more than one loan is secured by the home, you also calculate the combined loan-to-value:

A worked example

Suppose a home appraises at $400,000 and you carry a $320,000 first mortgage. Your LTV is 80%, and your equity is $80,000, or 20%. Now add a $40,000 HELOC. Your first-mortgage LTV is unchanged at 80%, but your CLTV jumps to 90% (360,000 ÷ 400,000), and your equity falls to $40,000, or 10%. Many lenders cap home-equity borrowing at roughly 80-85% CLTV, so this is exactly the number that decides how large a second loan you can take.

How to use this LTV calculator

You can get an answer in under a minute. Choose how you want to enter the loan, then fill in the fields:

1. Pick a mode: "Loan amount" if you already know your balance, or "Price + down payment" if you are shopping and only know the price.
2. Enter the value: type the appraised value (purchase, refinance, or estimated market value). For a refinance, use a recent appraisal or a realistic estimate.
3. Enter the loan: either the loan balance directly, or the price and your down payment so the calculator can subtract to find the loan.
4. Add a second loan (optional): expand the second-loan section to include a home equity loan, HELOC, or piggyback second to see your CLTV.
5. Read the result: the headline shows your LTV; the cards show equity in dollars and percent; the PMI note tells you whether mortgage insurance is likely and how far you are from the 80% and 78% lines.

Who this calculator is for

• Home buyers checking whether their down payment clears the 20%-equity (80% LTV) line that avoids PMI.
• Refinancers confirming their LTV fits a rate-and-term or cash-out program before they apply.
• Homeowners sizing a home equity loan or HELOC against their lender's CLTV cap.
• Anyone paying PMI who wants to know how much further to pay down the balance to request cancellation.
• Sellers and budgeters who want a quick read on how much equity they actually hold.

Key terms explained

• Appraised value: a licensed appraiser's opinion of what the property is worth. Lenders use the lower of the appraised value and the purchase price.
• Equity: the share of the home you own outright — value minus all loans against it. Equity percent = 100% − CLTV.
• PMI: private mortgage insurance, charged on conventional loans while LTV is above 80%, protecting the lender if you default.
• CLTV: combined loan-to-value, the sum of every lien on the home divided by its value.
• HELOC: a home equity line of credit — a revolving second loan secured by your home that adds to your CLTV.

Scenario 1: clearing the 80% line on a purchase

You want a $350,000 home and have $35,000 (10%) saved. That is a $315,000 loan and a 90% LTV, so PMI applies. Save another $35,000 to reach $70,000 down (20%), and the loan drops to $280,000 for an 80% LTV — no PMI and a better rate. The calculator's "Price + down payment" mode lets you test each down-payment level and watch the LTV cross 80%.

Scenario 2: cash-out refinance

Your home now appraises at $500,000 and you owe $300,000 — a 60% LTV with $200,000 of equity. A conventional cash-out refinance is usually capped near 80% LTV, so the maximum new loan is about $400,000, freeing up to roughly $100,000 in cash before closing costs. Enter $500,000 as the value and $400,000 as the loan to confirm you land right at the 80% ceiling.

Scenario 3: adding a HELOC

You owe $240,000 on a $400,000 home (60% LTV) and want a HELOC. At an 85% CLTV cap, total liens can reach $340,000, so you could open a HELOC up to about $100,000. Put $240,000 as the first loan and try different second-loan amounts to see when the CLTV hits your lender's limit.

What changes your LTV the most

• Down payment / loan size: the biggest lever on a purchase — more cash down means a smaller loan and lower LTV.
• Appraised value: a higher appraisal lowers LTV; a low appraisal can push you over a threshold and trigger PMI or a smaller loan.
• Principal paydown: every payment (and any extra principal) chips the balance down, slowly lowering LTV over time.
• Home appreciation: rising values cut LTV without you paying a dollar — which is how many owners reach 80% and drop PMI early.
• Second loans: a HELOC or home equity loan does not change first-mortgage LTV but raises your CLTV.

Tips to lower your LTV

• Put more down or buy slightly below budget to land at or under 80% from day one.
• Make extra principal payments to reach the 80% balance faster and request PMI removal.
• Get a fresh appraisal after improvements or market gains — a higher value can drop you below 80% and end PMI.
• Avoid stacking second loans unless the CLTV still leaves comfortable equity.

Limitations and assumptions

• It uses the value you enter; a lender relies on a professional appraisal, which may differ.
• Lender LTV and CLTV caps vary by program, occupancy, and credit, and can be tighter than the general ranges shown.
• PMI guidance applies to conventional loans; FHA, VA, and USDA loans have their own insurance and LTV rules.
• It does not include closing costs or fees, which affect cash needed but not the LTV ratio itself.

How it compares to related calculators

LTV answers "how much equity do I have relative to the loan?" For nearby questions, a sister tool fits better:

• For your full monthly payment with taxes, insurance, and PMI, use the Mortgage Calculator.
• To compare your current loan to a new one, use the Refinance Calculator.
• For a payment-by-payment schedule, use the Amortization Calculator.
• To find your maximum price from income, use the Home Affordability Calculator.
• To plan a savings goal, use the Down Payment Calculator; for borrowing against equity, the HELOC Calculator.

Sources

• Consumer Financial Protection Bureau (CFPB) — What is a loan-to-value ratio and how does it relate to my costs?
• Consumer Financial Protection Bureau (CFPB) — What is private mortgage insurance (PMI)?
• Consumer Financial Protection Bureau (CFPB) — Owning a Home: mortgage basics.