Loan-to-Value (LTV) Ratio Calculator 📉

Determine the financial health and risk of your mortgage or home equity loan by calculating the **LTV** and **Combined LTV (CLTV)** ratios.

Loan-to-Value Input

Key Features of This Calculator

**LTV Ratio:** The core metric used by lenders to assess risk on a primary mortgage.
**CLTV Ratio:** Essential for determining eligibility for Home Equity Lines of Credit (HELOCs).
**Equity Calculation:** Instantly see the dollar value of your home's unencumbered worth.

LTV Ratio Formula

The LTV ratio represents the percentage of a property’s value that is financed by loans.

1. Loan-to-Value (LTV)

LTV (%) = (First Mortgage Amount ÷ Property Value) × 100

2. Combined Loan-to-Value (CLTV)

CLTV (%) = [(First Mortgage + Second Mortgage) ÷ Property Value] × 100

A higher LTV ratio (e.g., above 80%) often requires the borrower to pay for **Private Mortgage Insurance (PMI)**, increasing the cost of the loan for the borrower and reducing the risk for the lender.