LTV calculator

How do you calculate loan-to-value?

Loan-to-value is the loan divided by the property's value, as a percentage: LTV = loan / value x 100. With the defaults, a $290,000 loan on a $350,000 property is 290,000 / 350,000 = 82.86%. The other 17.14%, $60,000, is equity: the part of the property you own outright.

For a purchase, the value is normally the lower of the price and the lender's valuation, and the loan plus the deposit equals the price. For a loan on a home you already own, the value is the current valuation, which can move up or down. The calculator uses whatever value you enter, so check which figure your lender will use. The headline gives the ratio to two decimal places; the tiles show the equity, where the ratio sits among the reference edges, and what it would take to reach the next edge down.

What do the 60%, 75%, 80%, 85%, 90% and 95% edges mean?

The calculator marks six round numbers as reference edges. They are round-number arithmetic markers, not rules from any lender or regulator; each lender sets its own bands and what they mean for rates and approval. For a $350,000 property, each edge works out as follows:

On this value each 5 points of LTV is $17,500. The bar chart beside the result draws the same ladder for your value with your own loan as the last bar, and the result names the edge below you and the repayment, or the rise in value, that would reach it.

How much deposit do I need for a 75% or 90% LTV?

Choose Loan from a target and enter the value and the LTV you want. The largest loan is value x target LTV and the deposit is the rest. On a $350,000 price, a 75% target gives a $262,500 loan and an $87,500 deposit, 25% of the price; a 90% target gives $315,000 and $35,000.

The deposit here is the equity needed at the start. It does not include purchase taxes, legal fees or other closing costs, which are paid on top. The second chart on this tab shows the deposit at every edge for your value, so you can see what each step down costs.

What is combined loan-to-value (CLTV)?

Combined LTV adds every loan secured on the property: CLTV = (first loan + second charge) / value x 100. A second charge is any further loan behind the first: in the US, a home equity loan or a home equity line of credit; in the UK, a second charge mortgage. With the defaults, a $290,000 first loan and a $20,000 second charge on a $350,000 property give a CLTV of 88.57%, while the first loan alone is 82.86%. Equity falls to $40,000.

To bring the combined figure down to the 85% edge, the total borrowing must fall to $297,500, a repayment of $12,500, or the value must rise to $364,705.88. Choose Combined LTV to enter your own second charge. For a line of credit, enter the balance drawn, or the full limit to see the ratio if it were drawn in full.

When does PMI come off at 80% LTV?

In the US, private mortgage insurance on a conventional loan is tied to the original value of the home. The Consumer Financial Protection Bureau's guide When can I remove private mortgage insurance (PMI) from my loan? (last reviewed August 28, 2026) says:

• You can ask your servicer to cancel PMI from the date the principal balance is scheduled to reach 80% of the home's original value, or earlier if extra payments bring it there. The request must be in writing, your payment history must be good and current, you must be able to certify that there is no junior lien such as a second mortgage, and you may need evidence, such as an appraisal, that the value has not fallen below the original value.
• The servicer must end PMI automatically on the date the balance is scheduled to reach 78% of the original value, if you are current on payments.
• It must also end PMI the month after you reach the midpoint of the loan's amortization schedule, even if 78% has not been reached, again if you are current.

The guide defines original value as the lower of the contract price and the appraisal at purchase, or the appraised value at a refinance, and it covers single-family principal residences with loans closed on or after July 29, 1999. It notes that FHA, VA and lender-paid mortgage insurance follow different rules. As an example, a $350,000 home bought with 10% down has a $315,000 loan. At 6.5% over 30 years, the scheduled balance first reaches $280,000, 80% of the original value, after payment 95, and $273,000, 78%, after payment 109. The amortization calculator shows that schedule month by month.

Worked examples in pounds and dirhams

Pounds. A £270,000 mortgage on a £300,000 home is exactly 90% LTV, with £30,000 of equity. The edge below is 85%: reaching it takes a repayment of £15,000, bringing the loan to £255,000, or a value of £317,647.06. At exactly 90%, the result reports the ratio as sitting on the 90% edge.

Dirhams. An AED 1,350,000 loan on an AED 2,000,000 property is 67.5% LTV with AED 650,000 of equity. Reaching the 60% edge takes a repayment of AED 150,000, or a value of AED 2,250,000. Amounts follow the currency you choose and are never converted between currencies.

How do repayments and house prices change my LTV?

LTV moves from both ends. Each repayment lowers the loan, and the ratio falls with it. A change in value moves the ratio the other way: a lower value raises it, even if the loan does not change. On the default inputs, a 10% fall in value, from $350,000 to $315,000, takes the LTV from 82.86% to 92.06%, and the combined figure with the second charge to 98.41%.

If the debt grows larger than the value, the LTV goes above 100% and the equity is negative. A $290,000 loan on a property worth $250,000 is 116% LTV and $40,000 of negative equity; getting back to the 95% edge would take a repayment of $52,500. The line chart under the result shows the ratio across a range of values for your own loan.

How do you calculate LTV in Excel?

Put the loan in one cell and the value in another, then divide: with the loan in B1 and the value in B2, =B1/B2 gives 0.8286 for the defaults, which a percentage format shows as 82.86%. For combined LTV, add the second charge first: =(B1+B3)/B2. For the largest loan at a target, multiply: =B2*75% returns 262,500 on a $350,000 value. The repayment to reach an edge is =B1-B2*80%, which is 10,000 here, and the value needed is =B1/80%, which is 362,500.

Common mistakes and what this calculator leaves out

• Using the price when the valuation is lower. A lender may use the lower figure, which raises the LTV.
• Forgetting the second charge. A home equity loan or second charge counts toward combined LTV.
• Treating an edge as a promise. The edges are reference points; each lender sets its own bands and criteria.
• Ignoring fees added to the loan. An arrangement fee added to the balance raises the LTV.

The calculator does not value a property, assess whether a lender would offer a loan, or include purchase taxes, closing costs or mortgage insurance premiums. It uses the value and balances you enter, at one point in time. For how much a given income and deposit can support, see the mortgage affordability calculator.

Glossary

Loan-to-value (LTV): the loan as a percentage of the property's value. Combined LTV (CLTV): all secured loans together as a percentage of the value. Equity: the value minus everything secured on it. Negative equity: debt larger than the value. First charge: the main mortgage, repaid first from a sale. Second charge: a further loan secured behind the first. Deposit or down payment: the equity put in at purchase. Original value: in the CFPB's PMI guidance, the lower of the contract price and the purchase appraisal. PMI: private mortgage insurance on a US conventional loan.

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