Find your LTV from loan and home value, combined CLTV with a second lien, or the max loan amount at any target ratio.
Loan to Value Formula
The loan-to-value ratio compares what you borrow against a home to what the home is worth. The basic formula divides the loan amount by the value:
LTV = L / V * 100
The calculator can also work the formula in two other directions: combining all liens into a combined loan-to-value ratio, or solving for the largest loan that fits a target ratio:
CLTV = (L1 + L2) / V * 100 Lmax = V * (LTVt / 100)
Variables:
- LTV is the loan-to-value ratio as a percentage
- L is the loan amount (or current mortgage balance)
- V is the home value; on a purchase, lenders use the lower of the purchase price and the appraised value
- CLTV is the combined loan-to-value ratio across all liens
- L1 is the first mortgage balance and L2 is any second mortgage or HELOC balance
- Lmax is the maximum loan amount at the target ratio
- LTVt is the target LTV percentage
Pick what you want to find at the top of the calculator. The first mode returns your LTV from a loan amount and home value. The second mode solves for the biggest loan you can take at a target LTV, which is useful for sizing a purchase, a refinance, or a cash-out. The third mode computes CLTV when a second mortgage or HELOC sits behind the first mortgage, which is the number home equity lenders actually underwrite to.
The result is interpreted against the standard US thresholds: at or below 80% LTV, conventional loans need no private mortgage insurance; from 80% to 95% is the typical conventional range with PMI; conventional programs max out at 97% LTV, while FHA allows up to 96.5%.
LTV on a $400,000 Home at Common Loan Amounts
This table shows the loan-to-value ratio for a $400,000 home at a range of loan amounts, along with what each LTV band typically means for a US borrower.
| Loan amount | LTV | What it means |
|---|---|---|
| $240,000 | 60.00% | Strong equity; best rate pricing and easy HELOC eligibility |
| $280,000 | 70.00% | Well below the PMI threshold; favorable pricing |
| $300,000 | 75.00% | Comfortable equity cushion; room to borrow against the home |
| $320,000 | 80.00% | Conventional PMI cutoff; typical max for a cash-out refinance |
| $340,000 | 85.00% | PMI required on conventional; common home equity CLTV cap |
| $360,000 | 90.00% | PMI required; higher rate adjustments apply |
| $380,000 | 95.00% | Standard conventional maximum for many programs (5% down) |
| $386,000 | 96.50% | FHA maximum LTV (3.5% down) |
| $388,000 | 97.00% | Conventional maximum (3% down programs) |
Example Problems
Example 1: Find the LTV on a purchase.
You are borrowing $340,000 to buy a home appraised at $425,000. Divide the loan by the value:
LTV = 340,000 / 425,000 * 100 = 80.00%. That sits exactly at the conventional PMI cutoff, so no PMI is required, and your equity is 425,000 – 340,000 = $85,000.00 (20.00% of value).
Example 2: Find the combined LTV with a HELOC.
Your home is worth $450,000, your first mortgage balance is $280,000, and you carry a $35,000 HELOC balance. Add the liens and divide by the value:
CLTV = (280,000 + 35,000) / 450,000 * 100 = 70.00%, while the first-lien LTV alone is 280,000 / 450,000 * 100 = 62.22%. Remaining equity is $135,000.00.
Frequently Asked Questions
What is a good loan-to-value ratio?
For most purposes, 80% or below is the benchmark: it avoids private mortgage insurance on conventional loans and earns better rate pricing. Ratios of 90% to 97% are common for first-time buyers and are perfectly workable, they just cost more each month. For refinancing or borrowing against equity, lenders generally want you at or below 80% to 85% after the new loan.
How do I lower my LTV?
You can lower LTV from either side of the fraction: pay down the loan balance with regular or extra principal payments, or wait for the home’s value to rise. Buyers lower it up front with a larger down payment. If your home has appreciated since you bought it, a new appraisal can establish a lower ratio, which is a common route to removing PMI early.
What is the difference between LTV and CLTV?
LTV counts only the first mortgage against the home’s value, while CLTV adds every lien on the property, including second mortgages, home equity loans, and HELOC balances. A lender underwriting a HELOC cares about CLTV because it measures the total claim against the home. Most home equity lenders cap CLTV at 80% to 90%.
