# What is my LTV ratio?

Finds a mortgage’s loan-to-value ratio (LTV), the combined LTV with a second loan, your equity, and the largest loan or the extra down payment for a target LTV such as 80%.

- Page: https://www.acalculator.org/finance/ltv-calculator
- JSON spec: https://www.acalculator.org/finance/ltv-calculator.json
- Version: 55e57f943bf5

## Default answer

Example with the default inputs (Appraised value $400,000.00, Mortgage amount $340,000.00, Target LTV 80%): Your loan-to-value ratio is 85%, and PMI is usually required (LTV above 80%).

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| v | Appraised value | What the home is worth: its appraised value. |
| pp | Purchase price | Optional: the price, when you are buying. The lower of the price and the appraisal is used. |
| l | Mortgage amount | The amount you borrow, or still owe, on the first mortgage. |
| o | Other loans on the home | Optional: a second mortgage, home equity loan or HELOC balance. |
| t | Target LTV | The LTV you want to reach; 80% is the usual line for avoiding PMI on a conventional loan. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| ltv | Loan-to-value (LTV) | Mortgage amount ÷ home value × 100. |
| cltv | Combined LTV (CLTV) | All the loans on the home ÷ home value × 100. |
| basis | Value used | The appraisal, or the lower of the price and the appraisal. |
| equity | Equity | Value used minus all the loans on the home (negative when you owe more than it is worth). |
| down | Down payment or equity share | 100% minus the combined LTV (negative when you owe more than the home is worth). |
| maxLoan | Largest mortgage at the target | Target LTV × value used, less any other loans: the most the first mortgage can be. |
| reduce | To reach the target, lower the mortgage by | How much more down payment, or how much to pay down, for the target; $0 when you are there. |
| pmi | PMI on a conventional loan | Above 80% LTV (less than 20% down) a conventional loan usually needs private mortgage insurance. |

## Method

LTV = mortgage ÷ value × 100; CLTV = (mortgage + other loans) ÷ value × 100; value = the appraisal, or the lower of the price and the appraisal. Largest mortgage at a target = target × value − other loans.

## Assumptions

- On a purchase, the value is the lower of the price and the appraised value, as for PMI rules.
- The PMI line is a rule of thumb for conventional loans: 80% LTV is a 20% down payment. FHA, VA and USDA loans have their own rules.
- Lenders set their own LTV limits; this page shows the ratios, not a loan offer.

## Worked examples

1. v = $400,000.00, l = $340,000.00, t = 80% gives ltv = 85%, cltv = 85%, equity = $60,000.00, down = 15%, maxLoan = $320,000.00, reduce = $20,000.00, pmi = usually required (LTV above 80%). Source: CFPB, What is a loan-to-value ratio and how does it relate to my costs? (LTV compares the amount you are financing with the appraised value of the property; a higher down payment gives a lower LTV; lenders use it to decide on PMI and price), https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-to-value-ratio-and-how-does-it-relate-to-my-costs-en-121/ (retrieved 2026-10-02); CFPB, What is private mortgage insurance? (PMI may be required on a conventional loan with a down payment of less than 20 percent of the purchase price), https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/ (retrieved 2026-10-02).
2. v = $310,000.00, pp = $300,000.00, l = $240,000.00, t = 80% gives basis = $300,000.00, ltv = 80%, reduce = $0.00, pmi = usually not required (LTV 80% or less). Source: CFPB, When can I remove private mortgage insurance (PMI) from my loan? (original value is the contract sales price or the appraised value at purchase, whichever is lower; PMI can be cancelled at 80 percent and ends at 78 percent of it), https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/ (retrieved 2026-10-02); CFPB, What is private mortgage insurance? (PMI may be required on a conventional loan with a down payment of less than 20 percent of the purchase price), https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/ (retrieved 2026-10-02).
3. v = $500,000.00, l = $300,000.00, o = $100,000.00, t = 85% gives ltv = 60%, cltv = 80%, equity = $100,000.00, maxLoan = $325,000.00, reduce = $0.00. Source: CFPB, What is a loan-to-value ratio and how does it relate to my costs? (LTV compares the amount you are financing with the appraised value of the property; a higher down payment gives a lower LTV; lenders use it to decide on PMI and price), https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-to-value-ratio-and-how-does-it-relate-to-my-costs-en-121/ (retrieved 2026-10-02).
4. v = $250,000.00, l = $275,000.00, t = 80% gives ltv = 110%, equity = -$25,000.00, reduce = $75,000.00. Source: CFPB, What is a loan-to-value ratio and how does it relate to my costs? (LTV compares the amount you are financing with the appraised value of the property; a higher down payment gives a lower LTV; lenders use it to decide on PMI and price), https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-to-value-ratio-and-how-does-it-relate-to-my-costs-en-121/ (retrieved 2026-10-02).

## FAQ

### What is a loan-to-value ratio?

The CFPB describes it as a measure comparing the amount you are financing with the appraised value of the property. A $340,000 mortgage on a $400,000 home has an LTV of 340,000 ÷ 400,000 = 85%.

### How do I calculate LTV?

Divide the mortgage amount by the home’s value and multiply by 100. When buying, use the lower of the purchase price and the appraisal: a $240,000 loan on a $300,000 purchase appraised at $310,000 is 240,000 ÷ 300,000 = 80%.

### Why does 80% LTV matter?

An 80% LTV is a 20% down payment. The CFPB says you might be required to buy private mortgage insurance (PMI) on a conventional loan with less than 20 percent down, and you can ask to cancel PMI once the balance is scheduled to reach 80% of the original value.

### What is combined LTV (CLTV)?

All the loans on the home divided by its value: the first mortgage plus any second mortgage, home equity loan or HELOC. A $300,000 mortgage and a $100,000 home equity loan on a $500,000 home give an LTV of 60% and a CLTV of 80%.

### How much do I need to put down to reach 80%?

The largest mortgage is 80% of the value (less any other loans). On a $400,000 home that is $320,000, so a planned $340,000 loan must come down by $20,000: a $80,000 down payment instead of $60,000.

### Can LTV be over 100%?

Yes, when you owe more than the home is worth. A $275,000 balance on a $250,000 home is 110% LTV, and the equity is −$25,000.

### Does a lower LTV get a better rate?

Often. The CFPB notes that borrowers with a higher LTV are usually offered a higher interest rate, and that a larger down payment may get a better rate.

## Sources

- CFPB, What is a loan-to-value ratio and how does it relate to my costs? (LTV compares the amount you are financing with the appraised value of the property; a higher down payment gives a lower LTV; higher-LTV borrowers usually get a higher rate and may need PMI). https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-to-value-ratio-and-how-does-it-relate-to-my-costs-en-121/ (retrieved 2026-10-02)
- CFPB, What is private mortgage insurance? (PMI may be required on a conventional loan with a down payment of less than 20 percent of the purchase price). https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/ (retrieved 2026-10-02)
- CFPB, When can I remove private mortgage insurance (PMI) from my loan? (original value is the contract sales price or the appraised value at purchase, whichever is lower; you can ask to cancel PMI at 80 percent and it ends at 78 percent of the original value). https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/ (retrieved 2026-10-02)