LTV Calculator - Loan-to-Value Ratio, CLTV and the 80% PMI Line

How to use

1. Enter the Loan amount - the current balance for a refinance, or the amount you plan to borrow for a purchase.
2. Choose the Value basis: Appraised value or Purchase price, depending on which stage you are at.
3. Type that value into the value field - the label updates to match your choice.
4. If the property carries other loans (HELOC, second mortgage), add their combined total under Existing liens so the tool can compute CLTV; otherwise leave it at 0.
5. Press Calculate LTV to see the ratio, equity, CLTV when applicable, and the gauge with the 80% PMI threshold marked.
6. Read the verdict: at or below 80%, conventional loans typically avoid PMI; above it, PMI usually applies until equity reaches roughly 20-22%. Where appraised value and purchase price differ, lenders use the lower - run both numbers.

General information only — not medical, financial or legal advice. Figures cross-checked against public official sources (IRS / HMRC / NHS / WHO guidance) as of 2026-08. For decisions that matter, confirm with a licensed professional in your country.

About this tool

Loan-to-value ratio (LTV) is the loan divided by the property's value, expressed as a percentage - the single number lenders use to price risk on a mortgage. Enter the Loan amount, choose a Value basis (Appraised value or Purchase price) and the tool returns your LTV, the equity left in the property, and a plain-English verdict against the 80% line where private mortgage insurance (PMI) typically begins on conventional loans. Add any Existing liens and it also shows CLTV, the combined ratio across all loans on the property. Thresholds vary by loan type and lender; this is an educational estimate, not lending advice.

Each input has a specific source. The loan amount is the balance on your statement, or the amount on a purchase contract; the appraised value comes from a professional appraisal, while the purchase price is simply what the contract says. For purchases, lenders compute LTV on the LOWER of appraised value and purchase price - if a home appraises below the contract price, the lower figure governs, and buyers often renegotiate or bring extra cash. Run this calculator both ways when the two values differ. Refinances use the appraised value alone, which is why appraisal results matter so much in a refinance.

CLTV extends the same idea across every loan secured by the property: first mortgage plus HELOCs, second mortgages and other liens, divided by value. A $300,000 first loan plus a $40,000 HELOC on a $400,000 home is a combined 85%. Lenders cap and price CLTV by program, generally tightening terms as it climbs. LTV falls in exactly two ways: the balance drops (every principal payment) or the value rises (market appreciation, or improvements appraisers recognize). Homeowners near the 80% line often request a recalculation or new appraisal to remove PMI - ask your servicer in writing about its requirements.

FAQ

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