Use this LTV and CLTV calculator to measure loan-to-value and combined loan-to-value ratios for real estate financing. Outputs include both ratios alongside equity position and down-payment targets.
What is LTV?
Loan-to-value is the ratio of a loan balance to the appraised value of the property securing it. Combined loan-to-value extends this to include all outstanding loans against the same property. Both are central to real estate financing because lenders use them to assess risk, set eligibility thresholds, and determine rates and terms.
A lower LTV means more equity in the property, which reduces lender risk. That relationship is why LTV thresholds are so significant in lending: crossing certain levels (80% LTV, for example) typically triggers different underwriting treatment, PMI requirements, or rate adjustments.
LTV and CLTV formulas
LTV = Loan Balance / Property Value
CLTV = (All Outstanding Loan Balances) / Property Value
Both are expressed as percentages. CLTV matters most when a property carries a first mortgage alongside a home equity loan or line of credit, since lenders evaluate exposure against the full debt stack rather than any single loan in isolation.
How the LTV calculator works
The calculator produces both ratios alongside equity position and down-payment targeting, which connects the percentage-based outputs to their dollar-level implications. The most useful read is how close the ratios sit to key thresholds and how much adjustment it takes to cross them.
Small changes in property value or loan structure near a cutoff can materially shift what financing terms look like. Making that sensitivity visible before structuring decisions are finalized is where this kind of ratio analysis is most valuable.
How LTV is used in mortgage and real estate finance
LTV is one of the primary underwriting criteria in residential and commercial lending. Conventional loans typically require LTV below 80% to avoid private mortgage insurance. Refinancing eligibility, home equity line availability, and second mortgage structuring all depend on where CLTV lands relative to lender thresholds. Cash-out refinancing and renovation financing decisions also hinge on how much equity the current LTV implies.