Loan-to-Value (LTV) Ratio Calculator
Real EstateCalculate your loan-to-value ratio, or switch modes for combined LTV (CLTV) with a second mortgage or HELOC, or how much additional borrowing capacity you have left.
Loan-to-Value Ratio
Your loan amount as a percentage of the property's value.
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Odeh AhwalBased on 3 sources
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Real Estate calculators
Loan-to-value ratio, or LTV, measures your loan amount against your property's value, expressed as a percentage. Lenders use it as a quick risk shortcut: a lower LTV usually means a better rate and no mortgage insurance requirement, while a higher LTV signals more leverage and more risk to the lender.
Most lenders treat 80% as the real dividing line. Above 80% LTV on a conventional loan, you will typically owe private mortgage insurance (PMI) until your equity builds back up, the related calculators below can estimate that cost if it applies to you.
If you have a second mortgage or HELOC on top of your first loan, switch to Calculate Combined LTV (CLTV), which reflects every lien on the property, the real number lenders check before approving a new loan against equity you have already partly pledged. Switch to How Much Can I Borrow to work the same relationship in reverse for an existing property, or to Calculate Max Purchase Price to work it in reverse for a new purchase: given a loan amount you already know you can get and a target LTV, see the highest price that loan actually covers and the down payment that implies.
LTV vs. CLTV: What's the Difference
LTV looks at a single loan against a property. CLTV, combined loan-to-value, adds up every lien on that same property, your first mortgage plus a second mortgage or HELOC, and divides that total by the property's value. If you only have one loan, the two numbers are identical.
- LTV: one loan balance / property value
- CLTV: (first mortgage + second mortgage or HELOC) / property value
- CLTV is always equal to or higher than the first mortgage's own LTV, since it adds more debt against the same property value
How Much Can I Borrow Against My Equity
Most lenders cap combined loan-to-value at 80 to 85% for a HELOC or second mortgage, meaning your first mortgage plus the new loan together cannot exceed that share of your home's value. The How Much Can I Borrow mode uses whichever ceiling you enter to show the real dollar amount still available, not just the percentage.
That available amount is a ceiling, not a guarantee, actual approval still depends on your credit, income, and debt-to-income ratio, the same factors that apply to any new loan. Estimate your real affordability separately before assuming you both can and want to borrow the maximum shown here.
Shopping With a Known Loan Amount
If you already know how much a lender is willing to loan you and want to work out what price range that actually covers, switch to Calculate Max Purchase Price. Enter that loan amount and your target LTV, and the result shows the highest property price the loan supports at that ratio, along with the down payment you would need to hit it.
For example, an $180,000 loan at a 90% LTV covers a $200,000 purchase, with $20,000 needed as a down payment, the same relationship as Calculate LTV, solved in the opposite direction.
What Is a Good LTV Ratio
80% or lower is the real sweet spot most conventional lenders look for, it avoids PMI and typically qualifies for better rates. Government-backed loans allow higher LTVs (FHA loans commonly go up to 96.5%, VA loans can reach 100%), trading a higher LTV ceiling for other requirements or fees specific to those programs. If your own LTV lands above 80%, the PMI Calculator can estimate the real monthly cost of that insurance requirement.
Frequently Asked Questions
What is LTV used for?
Lenders use loan-to-value ratio to assess risk, a lower LTV (more equity or down payment) generally means better interest rates and loan terms, since the lender has more cushion if the property value drops.
At what LTV do I need to pay PMI?
On most conventional US mortgages, an LTV above 80% (meaning less than 20% down payment) requires private mortgage insurance (PMI), which protects the lender until you build enough equity.
How can I lower my LTV?
You can lower your LTV by making a larger down payment, paying down your loan balance faster, or benefiting from property value appreciation over time.
What is CLTV and how is it different from LTV?
CLTV, combined loan-to-value, adds every lien on a property together, first mortgage plus a second mortgage or HELOC, before dividing by property value. LTV looks at a single loan alone. If you only have one loan, LTV and CLTV are the same number.
How much HELOC can I get based on my LTV?
Most lenders cap combined loan-to-value at 80 to 85% for a HELOC or second mortgage. Switch to How Much Can I Borrow, enter your first mortgage balance and that maximum CLTV, and the result shows your real available borrowing capacity in dollars.
What is a good loan-to-value ratio?
80% or lower is the real target for most conventional loans, since it avoids PMI and typically qualifies for the best rates. Government-backed loans like FHA and VA allow meaningfully higher LTVs in exchange for other program-specific requirements.
Does refinancing use a different LTV than my original purchase?
Yes. A refinance LTV is based on your home's current appraised value and current loan balance, not your original purchase price or original loan amount, so it can be higher or lower than your purchase-time LTV depending on how your home's value and balance have changed.
I know my loan amount, how do I find out what price I can afford?
Switch to Calculate Max Purchase Price, enter your loan amount and your target LTV, and the result shows the highest property price that loan covers, along with the down payment needed to reach it.
Sources
- What Is a Loan-to-Value Ratio and How Does It Relate to My Costs?, Consumer Financial Protection Bureau (CFPB)
- Loan-to-Value (LTV) Ratios (Selling Guide, B2-1.2-01), Fannie Mae
- FHA Single Family Housing Policy Handbook (4000.1), U.S. Department of Housing and Urban Development (HUD)
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