LTV Calculator (Loan to Value)

The LTV Calculator (Loan to Value) measures how much of a property’s value is financed by mortgage debt. Enter the purchase price or property value, down payment or equity, other secured loans, and a PMI reference threshold. The result shows first-mortgage LTV, estimated first loan amount, down payment percentage, combined loan-to-value, equity after secured loans, and any loan amount above the selected threshold.

LTV is one of the most important home-finance ratios because it connects down payment, collateral value, mortgage insurance, and lender risk. A buyer who puts 20% down on a purchase usually starts at 80% LTV. A buyer who puts 10% down starts at 90% LTV. A homeowner refinancing with a HELOC may have a moderate first-mortgage LTV but a higher combined LTV. For the cash-down calculation, use the down payment calculator. For the PMI cost attached to high LTV, use the PMI calculator. For the payment after choosing a loan amount, use the home loan calculator.

What the calculator includes

The calculator estimates the first mortgage by subtracting down payment or equity from the property value. It floors that first-loan amount at zero, so an equity amount larger than the value does not create a negative first mortgage. It then divides the first loan by property value to calculate LTV. Combined LTV adds other secured loans before dividing by value. Equity after secured loans is property value minus the first loan minus other secured loans.

The PMI reference threshold defaults to 80%. If the first-mortgage LTV is above that threshold, the calculator adds a line showing how many dollars of first loan sit above the threshold. If LTV is at or below the threshold, no gap line is added and the result tone is positive. The threshold is a reference, not a promise that PMI applies or disappears for every loan program.

Formula

The estimated first loan is:

$\text{first loan} = \max(0,\ \text{property value} - \text{down payment or equity})$

The first-mortgage loan-to-value ratio is:

$\text{LTV} = \frac{\text{first loan}}{\text{property value}} \times 100$

The combined loan-to-value ratio is:

$\text{CLTV} = \frac{\text{first loan} + \text{other secured loans}}{\text{property value}} \times 100$

The down payment percentage is:

$\text{down payment percent} = \frac{\text{down payment or equity}}{\text{property value}} \times 100$

The equity after secured loans is:

$\text{equity after secured loans} = \text{property value} - \text{first loan} - \text{other secured loans}$

The threshold gap, shown only when LTV is above the selected reference point, is:

$\text{loan above threshold} = \max(0,\ \text{first loan} - \text{property value} \times \frac{\text{PMI threshold}}{100})$

Worked example

Use the default inputs: a $250,000 property value, $50,000 down payment or equity, $0 in other secured loans, and an 80% PMI reference threshold. The first loan is $250,000 - $50,000 = $200,000. The LTV is $200,000 ÷ $250,000 × 100 = 80%. The down payment percentage is $50,000 ÷ $250,000 × 100 = 20%.

Because there are no other secured loans, CLTV is also $200,000 ÷ $250,000 × 100 = 80%. Equity after secured loans is $250,000 - $200,000 - $0 = $50,000. The threshold gap is max of zero and $200,000 - $250,000 × 80%, which equals max of zero and $0, so no “loan amount above 80% LTV” line is added.

Now change only the down payment to $25,000. The first loan becomes $225,000, LTV becomes 90%, and the amount above an 80% threshold is $225,000 - $200,000 = $25,000. That does not automatically quote PMI, but it shows the dollar distance from the reference threshold.

How lenders use LTV and CLTV

LTV helps a lender measure collateral risk. Lower LTV means more borrower equity and a larger cushion if the property has to be sold. Higher LTV means less equity, which can affect pricing, documentation, mortgage insurance, and program eligibility. For many conventional loans, LTV above 80% is associated with PMI. FHA, VA, USDA, jumbo, portfolio, and investor loans can use different rules and fees.

CLTV is especially important when another lien is secured by the property. A homeowner might have a first mortgage at 70% LTV, but a HELOC could push combined LTV to 85%. That broader ratio can matter for refinance, home equity borrowing, cash-out limits, or risk review. LTV is therefore not just a purchase metric; it is also a refinance and home-equity metric.

Tips for using the calculator

Use the value a lender is likely to use. If the appraisal is lower than the contract price, the effective LTV can be higher than expected. Include second liens, HELOCs, or home equity loans in the other secured loans field when looking at CLTV. If you are testing a purchase, run several down payments to see how much cash is needed to reach 90%, 85%, 80%, or another lender threshold.

Do not confuse LTV with affordability. A low LTV can still have an unaffordable payment if the loan is large relative to income, taxes, insurance, or other debts. Pair this result with the home affordability calculator, PITI calculator, and debt-to-income calculator before deciding how much to borrow.

Informational note

This calculator is for education and scenario planning. It is not a mortgage approval, appraisal, PMI quote, refinance eligibility decision, or legal interpretation. Loan programs define value, eligible liens, mortgage insurance, and thresholds differently, so confirm exact treatment with lender disclosures and program rules.

Sources

Source version: issuer and guide pages current when accessed July 9, 2026; no unstated effective year is assumed.

• CFPB, What is private mortgage insurance? — verified 200; explains PMI and the role of borrower equity.
• CFPB, Loan Estimate explainer — verified 200; describes loan terms and projected payment disclosures.
• Freddie Mac Guide, Mortgage Insurance — verified 200; mortgage insurance requirements and LTV-related references.