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Loan-to-Value Calculator

Find your home's loan-to-value, combined LTV and HCLTV ratios, how much equity you have, and how far you are from a target LTV.

Level: Grades 6–7

  • Common Core standard 6.RP.A.3.cFind a percent of a quantity as a rate per 100 (e.g., 30% of a quantity means 30/100 times the quantity); solve problems involving finding the whole, given a part and the percent.
  • Common Core standard 7.RP.A.3Use proportional relationships to solve multistep ratio and percent problems. Examples: simple interest, tax, markups and markdowns, gratuities and commissions, fees, percent increase and decrease, percent error.
Printable worksheet

Loan-to-Value Calculator

Know the answer you need? Pick an input to work backward.

Inputs

The appraised value. For a purchase, use the lower of the price and the appraisal.

Second mortgages or home equity loans (not lines of credit).

Optional. Used for HCLTV, which counts the whole line.

Optional. Shows how much more you could borrow, or would need to pay down, to reach it.

Result

Loan-to-value (LTV)

75%

You owe $325,000.00 against a $400,000.00 property: an LTV of 75% and a combined LTV of 81.25%, with $75,000.00 of equity. You are $5,000.00 above a 80% limit.

Combined LTV (CLTV)
81.25%
Home equity
$75,000.00
Equity as a share of value
18.75%
Total owed
$325,000.00
Pay down to reach 80% CLTV
$5,000.00
Property value: owed and equity
  • Total owed$325,000.0081.3%
  • Home equity$75,000.0018.8%

See the step-by-step solution ↓

Step-by-step solution

  1. Find the LTV: what you owe on the first mortgage as a percent of the home's value

    $300,000.00$400,000.00×100=75%

  2. Add up everything you owe that's secured by the home

    $300,000.00+$25,000.00=$325,000.00

  3. Find the combined LTV (CLTV): everything you owe as a percent of the value

    $325,000.00$400,000.00×100=81.25%

  4. Find your equity: the home's value minus everything you owe

    $400,000.00−$325,000.00=$75,000.00

  5. Find your room to a 80% combined LTV: the most a lender would allow (80% of the value) minus everything you owe

    80%×$400,000.00−$325,000.00=−$5,000.00

Test yourself

20 quick questions built from this calculator's formula: work out results, predict what happens when an input changes, and work backward from an answer. Every answer comes with the working.

Please note: Results are estimates for planning and comparison. Lenders, banks, and tax authorities may round differently or include fees not modeled here, so confirm figures with your provider before deciding.

What this calculator does

Find out how much of your home's value you've borrowed against, and how much equity you have. That share is called the loan-to-value ratio, or LTV. Lenders use it to judge risk. The less you owe compared with the value, the more cushion there is if prices fall.

Your LTV affects whether you need mortgage insurance and what rate you're offered. It also affects whether you can refinance and how much you can borrow against your home.

This calculator gives the three versions lenders look at. The LTV counts only the first mortgage. The combined LTV (CLTV) adds second mortgages, home equity loans and what you've drawn on a home equity line of credit (HELOC). The HCLTV counts the line's full credit limit, whether you've used it or not. You'll also see your equity. And if you pick a target ratio, it shows how much more you could borrow, or how much you'd need to pay down.

Where it's used

Why this math matters outside the classroom:

  • Buying a home. A buyer putting $60,000 down on a $300,000 house borrows $240,000, an LTV of exactly 80%.
  • Home equity borrowing. A homeowner with a $400,000 home and $300,000 owed finds $20,000 of room under an 80% combined limit.
  • Refinancing. Someone owing $210,000 on a home now worth $350,000 sees a 60% LTV before applying to refinance.
  • Math class percents. Students find what percent $325,000 is of $400,000 and get 81.25%.
  • Mortgage insurance. A borrower tracks when the balance falls to 80% of the original value to ask about removing mortgage insurance.

Grade level and standards: Grades 6–7; Common Core State Standards for Mathematics 6.RP.A.3.c, 7.RP.A.3. © Copyright 2010. National Governors Association Center for Best Practices and Council of Chief State School Officers. All rights reserved.

How to use it

  1. Enter the property value. Use the appraised value, or for a purchase, the lower of the price and the appraisal.
  2. Enter the first mortgage balance and any other loans secured by the property.
  3. If you have a home equity line of credit, enter the amount drawn. For HCLTV, also enter the full credit limit.
  4. If you like, enter a target combined LTV, such as 80% or 90%, to see your borrowing room. Then read the ratios and the equity breakdown.

What the inputs mean

Property value
Lenders use an appraisal or an automated valuation. For a purchase, they generally use the lower of the price and the appraised value.
Other loans secured by the property
Loans secured by the home that you borrowed as one lump sum: second mortgages and fixed home equity loans. Enter what you still owe on them.
Home equity line: amount drawn
What you currently owe on a home equity line of credit. It counts toward the combined LTV.
Home equity line: credit limit
The most you can draw on the line. HCLTV counts all of it, because you could draw it at any time.
Target combined LTV
A maximum combined LTV, such as a lender's limit for a home equity loan or cash-out refinance. Lenders set their own limits.

Formula and method

LTV = first mortgage ÷ property value × 100
CLTV = (first mortgage + other loans + line drawn) ÷ property value × 100
HCLTV = (first mortgage + other loans + full line limit) ÷ property value × 100
equity = property value − total owed
room to target = target % × property value − total owed

Each ratio is a percent of the same property value. They differ only in which debts count. LTV looks at the first mortgage alone. CLTV counts every balance secured by the home. HCLTV counts the most you could owe if every credit line were fully used.

Equity is what you'd have left if the home sold for the value entered and every loan were repaid, before selling costs. Room to a target compares two amounts. One is the most a lender would allow at that ratio. The other is what you already owe, counting the full credit line if you have one. A negative figure means you're over the target.

Worked example

Your home is appraised at $400,000. You owe $300,000 on the first mortgage and $25,000 on a home equity loan, and a lender caps combined LTV at 80%.

  1. LTV: $300,000 ÷ $400,000 × 100 = 75%.
  2. Total owed: $300,000 + $25,000 = $325,000.
  3. CLTV: $325,000 ÷ $400,000 × 100 = 81.25%.
  4. Equity: $400,000 − $325,000 = $75,000, or 18.75% of the value.
  5. Room at 80%: 80% × $400,000 = $320,000, minus $325,000 = −$5,000.

Result: The LTV is 75% and the combined LTV 81.25%. You'd need to pay down about $5,000 to get under an 80% combined limit.

Understanding the result

Lower is better from a lender's point of view. Many conventional mortgages require mortgage insurance when the LTV is above 80%. The best rates often go to lower ratios. For home equity borrowing and cash-out refinancing, lenders set a maximum combined LTV. You can borrow only up to that line.

An LTV above 100% means you owe more than the property is worth, often called being underwater. That makes it much harder to refinance, or to sell without bringing cash to the closing.

Assumptions and limitations

  • The property value is the figure you enter. Lenders use their own appraisal or valuation.
  • Balances are what you currently owe on each loan, without interest that has built up or payoff fees.
  • HCLTV counts whichever is larger: a credit line's limit or its drawn balance.
  • Lender limits, mortgage insurance rules and loan programs vary. The ratios here aren't an approval or a quote.
  • Selling costs, taxes and liens other than loans aren't included in the equity figure. A lien is a legal claim against the property.
  • Only one property value is used. Loans secured by more than one property aren't modeled.

Frequently asked questions

What is a good loan-to-value ratio?

For a conventional home purchase, 80% or less (a down payment of at least 20%) usually avoids private mortgage insurance. It also tends to get you better pricing. For borrowing against your home, lenders commonly cap combined LTV somewhere from 80% to 90%. Limits vary by lender and loan.

What is the difference between LTV and CLTV?

LTV counts only the first mortgage. CLTV, the combined loan-to-value, adds every other loan secured by the property. That includes a second mortgage, a home equity loan or the balance on a home equity line. Lenders look at CLTV when you already have, or are applying for, a second loan.

What is HCLTV?

It's the home equity combined loan-to-value. It treats a home equity line of credit as if you'd used all of it. So it counts the credit limit instead of the current balance, because you could borrow that amount at any time. It's always at least as high as the CLTV.

How can I lower my LTV?

Pay down the loan balance, for example with extra payments toward the loan itself, or wait for the property's value to rise. Improvements that raise the appraised value help too. On a new purchase, a bigger down payment lowers the starting LTV directly.

How this calculator is checked

Method: Standard mortgage-industry definitions of loan-to-value, combined LTV and home equity combined LTV (HCLTV) as balances ÷ property value. The calculation is covered by automated tests with known reference values and edge cases. Last updated 2026-10-18. Found a problem? Tell us.

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