Budget and qualifying
Loan-to-Value Calculator: LTV, CLTV and Home Equity
Find the ratio lenders use to price your loan, decide on mortgage insurance and set refinance limits: how much you owe compared with what the home is worth.
Last updated · Runs in your browser. Nothing you enter is stored or sent.
Loan-to-value (LTV)
Results
In plain words
On a home worth $400,000, a $340,000 first mortgage gives an LTV of 85%. With $0 in other loans, your combined LTV is 85% and your equity is $60,000.
Runs in your browser. Nothing you enter is stored or sent.
Key figures
- Loan-to-value ratio (LTV)85%
- Combined loan-to-value (CLTV)85%
- Home equity$60,000
- Pay down to reach 80%$20,000
- Pay down to reach 78%$28,000
- First mortgage amount$340,00085%
- Home equity$60,00015%
View chart as table
| Combined loan-to-value (CLTV) | |
|---|---|
| Your numbers | 85% |
| Conventional 97% | 97% |
| FHA 96.5% | 96.5% |
| PMI 80% | 80% |
If the home value changes
| Scenario | Home value or purchase price | Loan-to-value ratio (LTV) | Combined loan-to-value (CLTV) | Home equity |
|---|---|---|---|---|
| -10% | $360,000 | 94.44% | 94.44% | $20,000 |
| Your numbers | $400,000 | 85% | 85% | $60,000 |
| +10% | $440,000 | 77.27% | 77.27% | $100,000 |
How to use this calculator
- Enter the home's value: the lower of the price and appraisal for a purchase, or the appraised value for a refinance.
- Enter the first mortgage amount or current balance.
- Enter any second mortgage or HELOC balance, or 0.
- Read your LTV, combined LTV and equity, and compare them with the thresholds in the table below.
Loan-to-value (LTV) is the share of a home’s value that you borrow. It is one of the most important numbers in a mortgage: it decides whether you pay mortgage insurance, how your rate is priced, how long FHA insurance lasts and how much you can borrow when you refinance. This loan to value calculator gives you LTV, combined LTV and your equity in one step.
How this loan to value calculator works
The calculator uses three simple formulas:
LTV = first mortgage ÷ home value × 100
CLTV = (first mortgage + second mortgage or HELOC) ÷ home value × 100
Equity = home value − first mortgage − second mortgage
The home value depends on the transaction. Under Fannie Mae’s rules, a purchase uses the lower of the sales price and the appraised value, and a refinance uses the current appraised value. Combined LTV (CLTV) adds the unpaid balance of any closed-end second mortgage and the drawn balance of any home equity line of credit (HELOC).
Worked examples
Example 1: buying with 15% down
A buyer purchases a $400,000 home (appraised at $400,000) with a $340,000 loan and no second mortgage.
- LTV: $340,000 ÷ $400,000 = 0.85, or 85%.
- CLTV: also 85%, since there is no second loan.
- Equity: $400,000 − $340,000 = $60,000.
At 85%, a conventional loan needs PMI. Borrowing $20,000 less would bring the LTV to 80% and avoid it.
Example 2: a refinance with a HELOC
A homeowner’s house appraises at $500,000. The first mortgage balance is $300,000, and there is $50,000 drawn on a HELOC.
- LTV: $300,000 ÷ $500,000 = 60%.
- CLTV: ($300,000 + $50,000) ÷ $500,000 = 70%.
- Equity: $500,000 − $350,000 = $150,000.
A lender looking at a new first mortgage would check both numbers. Another common case is a purchase with an 80% first mortgage and a 10% second mortgage: on a $400,000 home, a $320,000 first loan and a $40,000 second loan give an LTV of 80% and a CLTV of 90%, with $40,000 of equity.
What your result means
| LTV | What it usually means |
|---|---|
| 80% or less | No PMI on a conventional loan; often better pricing |
| 80.01% to 90% | Conventional PMI applies; FHA annual premium ends after 11 years |
| 90.01% to 95% | Higher PMI; FHA premium lasts for the life of the loan |
| 95.01% to 97% | Conventional only on certain low-down-payment programs |
| Above 97% | Mainly FHA (up to 96.5% base loan), VA and USDA |
Over time, your LTV falls as you pay the loan down and, if values rise, as your home gains value. Check where you will be in a few years with the amortization schedule calculator.
Program rules that change the answer
| Program | Maximum LTV on a typical purchase | LTV rule that matters most |
|---|---|---|
| Conventional | 97% on some programs, often 95% | PMI until 80%; automatic end at 78% of original value |
| FHA | 96.5% base loan with a 580+ score | 90% or less: annual MIP for 11 years; above 90%: life of loan |
| VA | Up to 100% with full entitlement | Down payment of 5% or 10% lowers the funding fee |
| USDA | Up to 100% plus the financed guarantee fee | Income and location limits apply |
| Jumbo | Set by each lender, often lower | Larger down payments are common |
Some community programs allow a CLTV above 100% with an approved second mortgage for down payment help; Fannie Mae’s HomeReady, for example, allows up to 105% with a Community Seconds loan. Read mortgage insurance explained for how each program’s insurance ties to LTV, and the mortgage requirements by loan type guide for the other rules.
Assumptions
- The value you enter is the value a lender would use; the calculator does not compare price and appraisal.
- The second loan figure is the amount owed or drawn, not the full HELOC credit limit.
- Results are exact percentages; lenders may round up to the next whole percent.
- Financed fees, such as FHA upfront MIP, are not added unless you include them in the loan amount.
Common mistakes
- Using your own estimate of value. Lenders use the appraisal, and for a purchase the lower of price and appraisal.
- Forgetting the HELOC. A line you have drawn on counts toward CLTV.
- Missing a threshold by a hair. Because of rounding, 80.01% can be treated as 81%, which can trigger PMI.
- Assuming PMI ends automatically at 80%. At 80% you must ask; automatic termination is at 78% of the original value.
Limits of this estimate
Your lender will set LTV from the appraisal and the exact loan amount on your note, and may add rules for property type, occupancy and cash-out. If your result sits close to a threshold, ask how a slightly larger down payment would change your rate and mortgage insurance. To see when PMI could come off, use the PMI removal calculator.
For context, the national average 30-year fixed rate was 7.40% as of October 15, 2026 (Freddie Mac). FHA, VA and USDA rates are set by each lender and often differ.Source: Freddie Mac Primary Mortgage Market Survey, via FRED
Frequently asked questions
How do you calculate loan-to-value?
Divide the loan amount by the home's value and multiply by 100. A $340,000 loan on a $400,000 home is an 85% LTV. For a purchase, lenders use the lower of the sales price and the appraised value.
What is a good LTV for a mortgage?
80% or lower is the key line for conventional loans, because it avoids private mortgage insurance. Lower LTVs often get better pricing too. Many programs still allow much higher LTVs, such as 96.5% for FHA and up to 100% for VA and USDA.
What is the difference between LTV and CLTV?
LTV counts only the first mortgage. Combined LTV (CLTV) adds second mortgages and the drawn balance of any HELOC. Lenders check CLTV when there is more than one loan on the home.
When can I remove PMI based on LTV?
On a conventional loan, you can ask to cancel PMI when your balance reaches 80% of the home's original value, and it ends automatically at 78% if you are current on payments. Some lenders allow removal based on a new appraisal.
Does LTV affect FHA mortgage insurance?
Yes. FHA's annual premium lasts 11 years if your starting LTV is 90% or less, and for the life of the loan if it is higher. The premium rate itself also depends on whether LTV is above or below 95%.
How do lenders round LTV?
Fannie Mae truncates the ratio to two decimals and then rounds up to the next whole percent, so 80.01% counts as 81%. Being just over a threshold can change your pricing or mortgage insurance.
How much can I borrow in a cash-out refinance?
Each program caps the LTV for cash-out loans, and the cap is lower than for a purchase. Ask your lender for the current maximum for your loan type and property.
Sources
Read the guides
Related calculators
- Home affordability Turn your income, monthly debts and savings into a maximum home price, using the same debt-to-income test a mortgage lender uses.
- Debt-to-income (DTI) Find the two ratios lenders check first: how much of your gross income goes to housing, and how much goes to all your monthly debts.
- FHA MIP Work out the 1.75% upfront premium, the annual premium rate HUD assigns to your loan, the monthly cost and whether you pay it for 11 years or the life of the loan.
- PMI removal date See how many payments it takes before you can ask your servicer to cancel private mortgage insurance, and when federal law ends it automatically.