Loan-to-Value Calculator
Use this loan-to-value calculator to estimate your LTV ratio from your current home value and first-mortgage balance. If you also have a second mortgage or HELOC, the calculator can estimate combined LTV (CLTV) and update the equity calculation at the same time.
LTV is one of the common ratios lenders review for refinance planning, PMI awareness, and home equity decisions. Lower ratios are often viewed more favorably, but acceptable limits, pricing, and documentation requirements vary by lender and loan type.
This page is meant for educational planning. It provides a quick estimate of LTV, CLTV, and equity based on the values you enter, not a loan approval, appraisal, or quote.
Results are planning estimates only. Appraised value, lender LTV or CLTV limits, PMI rules, and home equity options can vary by lender and loan type.
How to use this calculator
- Enter your estimated current home value.
- Add the current principal balance on your first mortgage.
- If applicable, enter a second mortgage or HELOC balance to see combined LTV (CLTV).
- Review the estimated LTV ratio, optional CLTV ratio, total loan balance, home equity amount, and equity percentage.
- Use the interpretation block as general planning guidance for refinance, PMI, or home equity discussions, not as a lender decision.
This calculator works best as a quick checkpoint before you review a refinance offer, compare equity-access options, or estimate how much ownership stake you may have in the property.
How it works
This calculator compares your current home value with the mortgage balances entered to estimate loan-to-value, optional combined loan-to-value, and remaining equity.
It is designed for quick refinance, PMI-awareness, and home equity planning, so the result focuses on ratios and equity position rather than lender-specific approvals.
Core LTV formula
LTV = Loan balance ÷ Home value × 100
Main inputs in the estimate
- Loan balance
- Current principal balance on the first mortgage
- Home value
- Estimated current market value or appraisal-style value of the property
- Second loan balance
- Optional second mortgage or HELOC balance included in combined LTV
How to read the result
- Combined LTV uses the first mortgage plus any second mortgage or HELOC balance entered.
- Home equity is estimated as home value minus total loan balances.
- If total loan balances are higher than the home value entered, the calculator will show negative equity rather than failing.
- Benchmark ranges on this page are general planning guidance only. Actual lender limits, appraisal methods, PMI rules, and cash-out requirements vary.
Assumptions and limitations
- LTV is calculated as current first-mortgage balance divided by home value.
- CLTV is calculated as total loan balances divided by home value when a second mortgage or HELOC balance is included.
- Home equity is estimated as home value minus total loan balances.
- The home value entered is an estimate and may differ from a lender's appraisal or valuation method.
- Benchmark ranges on this page are general planning guidance only. Lender requirements vary by loan type, property type, occupancy, and underwriting standards.
Example scenario
Use these example scenarios to see how loan balance and home value change the ratio.
Example 1: Standard 80% LTV scenario
- Home value:
$400,000 - Current loan balance:
$320,000 - Second mortgage / HELOC balance:
$0
Estimated results:
- LTV:
80.00% - Total loan balance:
$320,000.00 - Home equity:
$80,000.00 - Equity percentage:
20.00%
Example 2: Including a second mortgage or HELOC
- Home value:
$500,000 - Current loan balance:
$250,000 - Second mortgage / HELOC balance:
$50,000
Estimated results:
- LTV:
50.00% - CLTV:
60.00% - Total loan balance:
$300,000.00 - Home equity:
$200,000.00 - Equity percentage:
40.00%
Example 3: Negative equity / underwater case
- 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.
Frequently asked questions
What is loan-to-value ratio?
Loan-to-value ratio, or LTV, compares your current loan balance with your home's value. It is usually calculated as loan balance divided by home value, multiplied by 100.
What is a good LTV ratio?
Lower LTV ratios are often viewed more favorably by lenders, but there is no single cutoff that applies everywhere. Requirements can vary by lender, loan type, occupancy, credit profile, and whether the loan is for purchase, rate-and-term refinance, or cash-out refinance.
How is LTV different from CLTV?
LTV usually refers to the first mortgage balance compared with home value. CLTV includes the first mortgage plus any second mortgage or HELOC balance.
Can I refinance with a high LTV?
Sometimes, but options may become narrower as LTV rises. A higher ratio may affect available programs, pricing, documentation, or whether additional lender review is required.
Does LTV affect PMI?
It can. LTV is commonly used when discussing PMI or similar mortgage insurance requirements, but cancellation rules and timing can depend on loan type, servicer practices, and current property value evidence.
What happens if my loan balance is higher than my home value?
That means the calculation shows negative equity, sometimes called being underwater. The calculator still works in that scenario and will show the negative equity amount instead of failing.
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