Loan-to-Value (LTV) Calculator
Loan-to-value and combined LTV on the lower of price and appraisal, with your equity and how far the loan sits from the lender’s cap.
How it is calculated
LTV = Loan amount ÷ Property value
Divide the loan by the property’s value and express it as a percentage. On a purchase the value is the lower of the price and the appraisal; on a refinance it is the appraisal. Combined LTV adds any second mortgage or line of credit, and it is the figure a lender holds against its cap when there is more than one loan.
- Loan
- The first mortgage balance, or the amount being borrowed.
- Value
- The lower of purchase price and appraised value; the appraisal alone on a refinance.
- CLTV
- Combined LTV: the first loan plus any second mortgage, HELOC or seller note, divided by the same value.
- Cap
- The lender’s maximum LTV — commonly 65% to 80% on commercial loans, 80% to 97% on owner-occupied homes.
A worked deal example
A $700,000 loan on a $1,000,000 purchase with a lender capping leverage at 75%.
- Value used
- $1,000,000 (price)
- Loan
- $700,000
- LTV
- 70.00%
- Lender maximum
- 75%
$700,000 over $1,000,000 is an LTV of 70.00%. That is inside the 75% cap with $50,000 of room: the most the cap allows is $750,000 in total. Equity is $300,000, 30.0% of the value.
Frequently asked questions
How do you calculate loan-to-value?
Does LTV use the purchase price or the appraised value?
Is an 80% LTV good?
What is the difference between LTV and CLTV?
How do I lower my LTV?
Maximum loan at common LTV limits
The same $1,000,000 property at the caps lenders commonly quote. Commercial loans usually sit in the 65% to 75% rows; owner-occupied home loans run from 80% up to 97% on some government-backed programs.
| Max LTV | Max loan | Down payment | Down payment % |
|---|---|---|---|
| 55% | $550,000 | $450,000 | 45% |
| 65% | $650,000 | $350,000 | 35% |
| 70% | $700,000 | $300,000 | 30% |
| 75% | $750,000 | $250,000 | 25% |
| 80% | $800,000 | $200,000 | 20% |
| 90% | $900,000 | $100,000 | 10% |
| 95% | $950,000 | $50,000 | 5% |
On a purchase, the cap applies to the lower of price and appraisal, so a low appraisal raises the down payment.
Regulators’ LTV limits, and the lender’s other tests
Federal bank regulators publish supervisory LTV limits that banks are expected to stay within: 65% for raw land, 75% for land development, 80% for commercial and multifamily construction, and 85% for improved property and for 1–4 family construction. Owner-occupied home loans have no supervisory limit, but a bank lending at 90% or more is expected to have mortgage insurance or extra collateral. Most lenders set their own caps well inside these.
On income property LTV is only one of three tests. The lender also sizes the loan on the income — the Commercial Real Estate Investment Calculator runs coverage and value together — and, for larger loans, on debt yield. It advances the smallest of the three, so a loan inside the LTV cap can still be cut on coverage. For a rental house or small building, the DSCR loan calculator runs the rent test.
Related calculators
Estimates only. This calculator is an educational tool, not financial advice, a loan offer, or a commitment to lend. Actual payments, loan sizing and closing costs depend on your lender's underwriting, the day-count convention in your loan documents, and fees not modeled here. Confirm any figure with your lender or advisor before acting on it. For an official reference, see Commercial Real Estate Lending (Comptroller’s Handbook, Office of the Comptroller of the Currency).