Loan-to-Value Calculator

Current mortgage / refinance mode

1. Select "Current mortgage / refinance."
2. Enter your estimated current home value.
3. Add the current principal balance on your first mortgage.
4. If applicable, enter a second mortgage or HELOC balance to see combined LTV (CLTV).
5. Set a target LTV (default 80%) to see how much paydown or home value appreciation would reach it.
6. Review LTV, CLTV, home equity, and the target LTV block.

Home purchase mode

1. Select "Home purchase."
2. Enter the purchase price.
3. Enter the dollar amount of your down payment.
4. Set a target LTV to see whether your down payment reaches it and, if not, how much extra would be needed.
5. Review purchase LTV, loan amount, down payment percentage, and the target LTV block.

Use the result as a quick planning check, not as a lender decision.

Use these examples to see how different scenarios affect LTV, CLTV, and the target LTV block.

LTV vs CLTV vs home equity — what each number means

• LTV compares the first mortgage balance with the home value. It is the most common ratio used for basic refinance and PMI discussions.
• CLTV (combined LTV) adds any second mortgage or HELOC balance to the first mortgage balance, then divides by home value. Lenders often use CLTV when a second lien is present.
• Home equity is the portion of the home's value that is not covered by loan balances. It equals home value minus total loan balances.

What 80% LTV means

An 80% LTV means the loan balance is 80% of the home value, leaving 20% equity. This level comes up frequently in planning discussions because some conventional loan programs allow cancellation of private mortgage insurance (PMI) once LTV reaches 80%, and lenders sometimes apply different pricing or eligibility criteria above versus below this threshold. Reaching 80% LTV requires paying down the loan balance, an increase in home value, or both. The target LTV block in this calculator shows the estimated paydown and home value needed.

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Example 1: Standard 80% LTV — refinance mode

• Mode: Current mortgage / refinance
• Home value: $400,000
• Current loan balance: $320,000
• Second mortgage / HELOC balance: $0
• Target LTV: 80%

Estimated results:

• LTV: 80.00%
• Total loan balance: $320,000.00
• Home equity: $80,000.00
• Equity percentage: 20.00%
• Target loan balance (80%): $320,000.00
• Paydown needed: $0.00 (already at target)

Example 2: Refinance with second mortgage / HELOC

• Mode: Current mortgage / refinance
• Home value: $500,000
• Current loan balance: $250,000
• Second mortgage / HELOC balance: $50,000
• Target LTV: 80%

Estimated results:

• LTV: 50.00%
• CLTV: 60.00%
• Total loan balance: $300,000.00
• Home equity: $200,000.00
• Target loan balance (80%): $400,000.00
• Equity surplus: $100,000.00 (CLTV well below target)

Example 3: Home purchase with 20% down

• Mode: Home purchase
• Purchase price: $400,000
• Down payment: $80,000
• Target LTV: 80%

Estimated results:

• Purchase LTV: 80.00%
• Loan amount: $320,000.00
• Down payment: 20.00%
• Paydown needed: $0.00 (already at target)

Example 4: Purchase with less than 20% down — gap to 80% target

• Mode: Home purchase
• Purchase price: $400,000
• Down payment: $40,000
• Target LTV: 80%

Estimated results:

• Purchase LTV: 90.00%
• Loan amount: $360,000.00
• Down payment: 10.00%
• Target loan balance (80%): $320,000.00
• Extra down payment needed: $40,000.00

This shows that an additional $40,000 in down payment would bring the LTV to the 80% target.

Example 5: Negative equity / underwater case

• Mode: Current mortgage / refinance
• Home value: $300,000
• Current loan balance: $330,000
• Second mortgage / HELOC balance: $0

Estimated results:

• LTV: 110.00%
• Home equity: -$30,000.00
• Equity percentage: -10.00%

This is an example of negative equity. The calculator still shows the result so you can review the ratio and equity position without the page breaking.