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Enter your values and press Calculate.
Enter the property value (the appraised value your lender uses), your first mortgage loan amount, and any second loan or HELOC balance. The calculator divides loan by value for LTV, adds the second loan for CLTV, and works out your equity, down payment share, PMI status, and the extra down payment that would bring you to 80% LTV.
Loan-to-value (LTV) is the loan amount divided by the property value, times 100. A $320,000 loan on a $400,000 home is 80% LTV. The other side of the same coin is equity: $400,000 minus $320,000 is $80,000, or 20% of the value. When you buy with a down payment, LTV is also 100% minus your down payment percentage: 20% down means 80% LTV.
Start with the appraised value, not just the asking price: lenders use the appraised value, and often the lower of appraisal and purchase price. Enter your first mortgage, then add a second mortgage or HELOC balance if you have one to see CLTV. The results panel shows LTV, CLTV, equity, down payment share, PMI status, and the extra down payment needed to reach 80% LTV.
$320,000 / $400,000 × 100 = 80.00% LTV. Equity is $80,000 (20%), the down payment share is 20%, and no PMI is required at 80% on a conventional loan. If the loan were $280,000 on a $300,000 home instead, LTV would be 93.33%, equity only $20,000 (6.67%), PMI would likely be required, and the extra down payment to reach 80% would be $40,000.
Below 60% is excellent, 60% to 80% is good, 80% to 90% is moderate, 90% to 97% is high, and above 97% exceeds most conventional limits. Lenders typically price in 5% bands between 60% and 95%: at 60% LTV or below you usually get the lowest rates, with little extra benefit below 60%. The 80 percent threshold is the line where PMI starts, and the table of maximum LTV by loan type in the next section shows how each loan type treats 90 percent, 95 percent, and 97 percent mortgages.
On a conventional loan, PMI (private mortgage insurance) is generally required above 80% LTV. PMI protects the lender, not you, and typically costs about 0.3% to 1.5% of the loan per year. The calculator shows the extra down payment needed to avoid PMI by reaching 80% LTV. You can usually request cancellation at 80% LTV with a good payment history, and it terminates automatically at 78% LTV under the US Homeowners Protection Act. FHA MIP is different: it generally cannot be cancelled without refinancing if the down payment was below 10%.
CLTV adds every secured loan on the property: first mortgage plus second mortgage plus HELOC, divided by value. A $205,000 first mortgage plus a $65,000 second loan on a $300,000 home is 68.33% LTV but 90% CLTV. Most lenders cap CLTV at 85% to 90% for home equity loans and HELOCs, and cash-out refinances are generally capped at 80% LTV.
Conventional loans go up to 97% with PMI above 80%. FHA loans go to 96.5% with a 3.5% minimum down payment. VA loans go to 100% for eligible service members with no traditional PMI, and USDA loans go to 100% for eligible rural properties. The HomeReady and Home Possible programs, aimed at first-time buyers, also go to 97% with down payments as low as 3%. Jumbo loans are typically capped at 80% to 90%. In the UK, most lenders go to 95% without a guarantor; in Canada, above 80% is a high-ratio mortgage needing CMHC default insurance; in Australia, above 80% LVR generally triggers lenders mortgage insurance (LMI).
Make a larger down payment, buy a less expensive home, pay down the balance (including overpayments), or wait for the property value to rise. A new appraisal after improvements or a rising market can also lower LTV, which is how many borrowers remove PMI or qualify for a refinance.
Lenders use the appraised value, and often the lower of appraisal and purchase price. If the appraisal comes in below the purchase price, LTV jumps: a $280,000 loan on a $300,000 price is 93.33%, but on a $290,000 appraisal it is 96.55%. A low appraisal can force a bigger down payment or a renegotiated price.
In the US and UK the ratio is called LTV; in Australia and New Zealand it is LVR (loan-to-valuation ratio). The difference between LTV and CLTV is the second loan balance. The difference between LTV and LVR is only the name: same ratio, different country. Deposit (UK and Australia) means the same as down payment (US), remortgage means refinance, and PMI, FHA MIP, LMI, and CMHC insurance are the country-specific forms of mortgage insurance.
This calculator gives planning estimates based on the values you enter. It is not mortgage advice, and real approvals depend on credit, income, property type, and lender rules. Confirm rates, PMI costs, and limits with your lender before deciding.
LTV is the loan amount divided by the property value, times 100. It shows how much of the property is financed versus owned outright.
80% or below is the usual good target: no PMI on a conventional loan and better rates. Below 60% typically gets the best pricing.
Divide your loan amount by the property value and multiply by 100. For example, $320,000 / $400,000 × 100 = 80%.
No. Conventional loans go to 97%, FHA to 96.5%, and VA and USDA to 100% for eligible borrowers. But above 80% you usually pay PMI or its equivalent.
Yes. Lenders price in bands, typically every 5% between 60% and 95%, and lower LTV generally means a lower rate.
CLTV adds all secured loans on the property (first mortgage, second mortgage, HELOC) and divides by the value. It matters for home equity borrowing and refinances.
On a conventional loan you can usually request cancellation at 80% LTV with a good payment history, and it ends automatically at 78% LTV on the original schedule.
Most lenders cap CLTV at 85% to 90% for home equity loans and HELOCs, so you need enough equity headroom under that cap.
Yes. Most refinances need an LTV at or below the loan type cap, and cash-out refinances are generally capped at 80% LTV.
Up to 97% for fixed-rate conforming loans, with PMI required above 80%. Adjustable-rate loans are often capped at 95%.
Yes in some cases: VA loans for eligible service members and USDA loans for eligible rural buyers go to 100%. A few UK deals also reach 100% with strict conditions.
LTV rises because the lender uses the appraised value (often the lower of the two). You may need a bigger down payment, a price renegotiation, or a second appraisal.
Raise the down payment, buy a cheaper property, pay down the balance, or get a new appraisal after the value rises.
High LTV means less equity and usually PMI plus a higher rate, but it also lets you buy sooner with less cash saved. It is a trade-off, not a verdict.
LVR is the Australian and New Zealand name for the same ratio: loan divided by property valuation. The maths is identical; only the name changes.