LTV calculator: loan-to-value, combined LTV and PMI removal
Loan-to-value (LTV) is the loan as a percentage of the value of what secures it. It decides whether a lender will approve a mortgage, what interest rate you are offered and whether you must pay mortgage insurance. This LTV calculator gives the LTV of your main loan, the combined LTV (CLTV) once a second mortgage or HELOC is added, your equity, and how much more you could borrow at a target LTV.
It also shows what you need to pay down to reach 80% LTV for PMI removal (and the 78% automatic cut-off) in the US, the lender LTV bands used in the UK, Australia, the UAE and India, and whether your loan is within the regulator’s cap where one applies. The tool is generic, so you can use it for a remortgage or for a car or other secured loan by entering the asset’s value. Results are estimates, not lending advice.
How to use the LTV Calculator
- Choose your Country to load a typical example and the local rules.
- Enter the Property or asset value and the Main loan balance.
- Add any Second loan or HELOC balance and the undrawn credit line, if you have them.
- Set a Target LTV to see the room to borrow, or how much to pay down.
- Read the LTV, CLTV, equity and the table of loan sizes at common LTV bands.
LTV Calculator features
LTV and combined LTV
The main loan alone, drawn second loans, and the full credit line.
PMI removal figures
The pay-down needed to reach 80% (request cancellation) and 78% (automatic end) in the US.
Borrowing room
How much more you can borrow, or must repay, to hit your target LTV.
Lender bands by country
US, UK, Australia, UAE and India bands, with the one you fall into highlighted.
Regulator caps
UAE Central Bank and RBI limits are checked against your loan.
LTV formula and worked example
LTV = loan balance ÷ property value × 100 and CLTV = (all loan balances) ÷ property value × 100. Equity is the value minus all balances. The most you can owe at a target LTV is value × target.
Example: a home valued at $400,000 with a $340,000 mortgage has an LTV of 85% and $60,000 (15%) of equity. For a lender capping at 80%, the loan would have to be $320,000, so you are $20,000 over. Adding a $20,000 HELOC balance makes the CLTV 90%, and 92.5% if the extra $10,000 of undrawn credit is counted.
For US PMI removal, you may ask the servicer to cancel when the balance is scheduled to reach 80% of the original value, and it must end automatically at 78% when you are current. On a $400,000 original value that means a balance of $320,000 (a $20,000 pay-down from $340,000) or $312,000 ($28,000 pay-down) respectively.
| Measure | Formula | Example |
|---|---|---|
| LTV | Loan ÷ value | 85% |
| CLTV | All loans ÷ value | 90% |
| Equity | Value − loans | $40,000 (with HELOC) |
| Room at 80% | 80% × value − loans | −$40,000 |
Why LTV matters
- Lower LTV usually means a lower interest rate and an easier approval.
- Above 80% LTV, US conventional loans carry PMI and Australian loans usually carry lenders mortgage insurance.
- For a remortgage, use the current valuation, not what you paid. Rising prices lower your LTV.
- The down payment calculator shows the deposit needed at each LTV, and the mortgage calculator the payment.
LTV Calculator FAQ
How do you calculate loan-to-value?
Divide the loan balance by the property value and multiply by 100. A $340,000 loan on a $400,000 home is 85% LTV.
What is a good LTV for a mortgage?
Lower is better. In the US, 80% or less avoids PMI; in the UK, 60–75% gets the best rates; in Australia, 80% or less avoids lenders mortgage insurance.
What is CLTV?
Combined loan-to-value adds every loan secured on the property, such as a second mortgage or HELOC, to the main loan before dividing by the value.
At what LTV can I remove PMI?
In the US you can request cancellation when the balance is scheduled to reach 80% of the original value, and it must end automatically at 78% if you are current, under the Homeowners Protection Act. Your servicer may need an appraisal if you rely on a higher value.
Does this work for a remortgage or a car loan?
Yes. Enter the current value and the balance. For a car, use the car’s market value; lenders often allow higher LTVs on cars but the formula is the same.
Is this lending advice?
No. Lender limits, valuations and fees vary. Check with your lender; the caps shown are dated in the notes and may change.