# LTV Calculator – Loan to Value

URL: https://speedycalculator.com/calculators/finance/loan-to-value/
Last updated: 2026-10-25

> The LTV calculator works out the loan-to-value ratio of a mortgage – the loan divided by the property's appraised value – and the combined LTV with a second mortgage or HELOC, which lenders use to set rates, PMI and borrowing limits.

## Inputs

- Loan amount
- Second mortgage / HELOC balance
- Property value
- Lender's maximum combined LTV (%)

## Results

- Loan to value ratio (LTV)
- Combined LTV
- Home equity
- Additional borrowing available
- PMI

## Formula

```
LTV = loan amount ÷ property value × 100
CLTV = (first mortgage + second loans) ÷ property value × 100
Equity = value − total loans
```

## Explanation

Most lenders want an LTV of 80% or less to avoid private mortgage insurance. For a home equity loan or HELOC, combined LTV limits are typically 80–90%.

### How to use the LTV Calculator – Loan to Value

- **Loan amount**
- **Second mortgage / HELOC balance**
- **Property value**
- **Lender's maximum combined LTV**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the mortgage balance, any second loans and the appraised value.

### Tips

- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.

### Common mistakes to avoid

- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.

### Inputs explained

FieldWhat to enterLoan amountAmount in your currencySecond mortgage / HELOC balanceAmount in your currencyProperty valueAmount in your currencyLender's maximum combined LTVIn %

### What each result means

- **Loan to value ratio (LTV)** = [Loan amount]÷[Property value]×100
- **Combined LTV** = ([Loan amount] + [Second mortgage ÷ HELOC balance])÷[Property value]×100
- **Home equity** = [Property value] - [Loan amount] - [Second mortgage ÷ HELOC balance]
- **Additional borrowing available** = [Lender's maximum combined LTV]([Property value]×[Lender's maximum combined LTV]÷100 - [Loan amount] - [Second mortgage ÷ HELOC balance], 0)

### Example values

How the main result changes when **Loan amount** changes and everything else stays at the example values above:

Loan amountLoan to value ratio (LTV) (%)160,00040240,00060320,00080400,000100480,000120640,000160

## Worked example

Inputs — Loan amount: $320,000; Second mortgage / HELOC balance: $0; Property value: $400,000; Lender's maximum combined LTV: 85 %.

Results — **Loan to value ratio (LTV) = 80 %**; Combined LTV = 80 %; Home equity = $80,000.00; Additional borrowing available = $20,000.00; PMI = Not required.

## FAQ

**What is a good LTV?**
80% or lower avoids PMI and gets better rates.

**How do I lower my LTV?**
Make extra payments, wait for the home to appreciate or put more down.

**What is CLTV?**
Combined LTV including all loans secured by the property.

**What formula does the LTV Calculator – Loan to Value use?**
LTV = loan amount ÷ property value × 100.


## Sources

- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)