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Loan-to-value calculator: LTV, CLTV and down payment

Calculate the loan-to-value and combined loan-to-value ratios of a mortgage, your equity and how much more you need to put down to avoid PMI.

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Results

Loan-to-value ratio (LTV)

80.0%

80% or less No private mortgage insurance (PMI) on a conventional loan.

Combined loan-to-value (CLTV)

80.0%

Down payment or equity
$80,000
Equity as a share of value
20.0%
Extra down payment to reach 80% LTV
$0

What loan-to-value measures

The loan-to-value ratio (LTV) compares the size of a mortgage with the value of the home that secures it. Lenders use it to price risk: the less equity you have, the more the lender stands to lose if prices fall and the loan goes bad. LTV decides whether you pay private mortgage insurance, which loan programs you qualify for and often the rate you get.

The formulas

  • LTV = first mortgage ÷ home value
  • CLTV (combined) = all loans secured by the home ÷ home value
  • Equity = home value − all loans

For a purchase, lenders use the lower of the price and the appraised value. For a refinance or a home equity loan, they use the current appraisal.

Worked example

You buy a $400,000 home with a $320,000 mortgage and no second loan.

  1. LTV = 320,000 ÷ 400,000 = 80.0%.
  2. CLTV = 80.0% as well.
  3. Down payment = $80,000, or 20% of the price.
  4. No extra down payment is needed to reach 80%, so there is no PMI on a conventional loan.

With a $360,000 loan instead, LTV would be 90%, and you would need $40,000 more down to reach 80%.

LTV limits by loan type

Loan Maximum LTV for a purchase
Conventional 97% for some first-time buyers, usually 95%; PMI above 80%
FHA 96.5% with a credit score of 580 or more, with mortgage insurance
VA and USDA Up to 100% for eligible borrowers
Jumbo Often 80 to 90%
Cash-out refinance Usually 80%

Getting rid of PMI

Under the Homeowners Protection Act, you can ask your lender to cancel PMI once the balance reaches 80% of the original value, and it must end automatically at 78%. Rising home prices or extra principal payments can get you there sooner; a new appraisal may be required.

Home equity loans and HELOCs

Lenders usually cap the combined loan-to-value at 80 to 90% for home equity loans and lines of credit. If your home is worth $400,000 and you owe $250,000, an 85% CLTV limit allows total borrowing of $340,000, or up to $90,000 of new credit.

This calculator gives estimates for education and planning. It is not investment, tax or legal advice; for decisions about your own situation, talk to a qualified financial professional.

Frequently asked questions

How do you calculate loan-to-value?

Divide the mortgage amount by the home's appraised value or purchase price, whichever is lower. A $320,000 loan on a $400,000 home is 80% LTV.

Why does 80% LTV matter?

Conventional loans above 80% LTV require private mortgage insurance (PMI). With 20% down or 20% equity, you avoid PMI and often get a better rate.

What is CLTV?

The combined loan-to-value ratio adds every loan secured by the home, such as a second mortgage or a HELOC, to the first mortgage before dividing by the value.

When does PMI go away?

You can ask to cancel PMI when the balance reaches 80% of the original value, and it ends automatically at 78% under the Homeowners Protection Act.

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Results are estimates provided for information purposes. They do not replace professional advice.

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