How to use
- Replace the example inputs with your loan and property figures.
- Select Calculate to update the estimate and any schedule.
- Change one assumption at a time, then compare the result with the earlier scenario.
How this calculation works
First-lien LTV divides the first mortgage balance by the property value. Combined LTV includes the additional mortgage balances entered. Equity is the property value minus all those balances; it is not the cash you would necessarily receive on sale.
LTV = first loan ÷ value × 100; CLTV = all entered loans ÷ value × 100
Worked example
Illustrative inputs — not a quote or a local average.
- Loan balance
- $320,000.00
- Property value
- $400,000.00
- Other mortgage balances
- $0.00
Loan-to-value ratio: 80%. Combined loan-to-value ratio: 80%. Property equity: $80,000.00.
Reading the result
Use the appraisal or value basis requested by the lender. For personal planning, test a lower property value as well as your central estimate. A percentage above one hundred means the entered debts exceed the entered value, which the tool reports without hiding negative equity.
Before acting on the estimate
A home-equity line may be evaluated using its credit limit in a separate ratio. This calculator uses the balance you enter. It does not determine a product’s maximum allowed LTV, insurance requirement or appraisal result.
Questions, answered
Are selling costs included in equity?
No. Deduct those separately when estimating sale proceeds.
Can LTV change without a payment?
Yes. A change in the value estimate changes the ratio even if debt is unchanged.