How to use this calculator
- Enter or choose appraised value.
- Enter or choose purchase price (if buying).
- Enter or choose loan amount.
- Enter or choose other loans secured on the property.
- Enter or choose target LTV.
- The loan-to-value updates as you type. Use Copy result or Share to keep it.
Method
Value used = min(Price, Appraisal); LTV = Loan ÷ Value × 100; CLTV = (Loan + Other loans) ÷ Value × 100; Max loan = Value × Target LTV
- Loan
- the first mortgage
- Other loans
- second charges, home-equity loans or lines secured on the same property
Worked example
- Value used = lower of $400,000 and $420,000 = $400,000.
- LTV = 340,000 ÷ 400,000 = 85%.
- At 80%, the largest loan is $320,000, so borrow $20,000 less to reach it.
A $340,000 loan on a $400,000 purchase is an 85% LTV; an extra $20,000 deposit would bring it to 80%.
What the result means
Lower LTV generally means a cheaper rate and less risk of negative equity. Lenders price in bands, so check whether a small extra deposit moves you below a threshold.
Assumptions and limits
- The value used is the lower of the purchase price and appraisal when both are entered, which is common lender practice.
- LTV thresholds, insurance requirements and maximums vary by lender, product and country; enter the target that applies to you.
Questions
What is the difference between LTV and CLTV?
LTV counts only the first mortgage. Combined LTV adds every loan secured on the property, such as a home-equity line.
Why does the lender use the lower of price and appraisal?
Lenders lend against what they can be confident the property is worth. Paying above the appraisal means you fund the gap yourself.
Please note: This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.