The Loan-to-Value ratio (LTV) is a financial metric used by banks and lenders to evaluate the risk of approving a mortgage. It compares the loan amount to the appraised value of the property.

Formula: LTV = (Loan Amount ÷ Appraised Value) × 100

A lower LTV generally indicates lower risk for lenders and may result in better loan terms for borrowers.

CLTV (Combined Loan-to-Value) is similar to LTV but considers multiple loans secured against the same property. For example, if you already have a mortgage and take a second loan, CLTV evaluates the total debt versus property value.

1. Enter the Mortgage Loan Amount.
2. Enter the Appraised Property Value.
3. Click the Calculate button.
4. Get instant results showing your LTV ratio in percentage.

Example: Loan = $180,000, Property Value = $200,000 → LTV = 90%

A lower LTV is considered better because it indicates more equity and lower risk. Generally:

• 80% or lower: Excellent (often avoids mortgage insurance)
• 81% - 90%: Acceptable, but may require higher interest or insurance
• 91% - 95%: High risk; fewer lenders may approve
• Above 95%: Very high risk; approval is rare

Most lenders cap the maximum LTV at 95%, meaning you must make at least a 5% down payment. However, this limit can vary depending on the lender, borrower profile and mortgage type.

• Make a larger down payment.
• Improve your property value with renovations or upgrades.
• Pay down existing mortgage balances.
• Avoid taking additional loans against the same property.

• Is high LTV bad? Yes, because it increases lender risk and may result in higher interest rates or loan rejection.
• Can I get a mortgage with 95% LTV? Some lenders allow it, but you may need mortgage insurance.
• What’s the difference between LTV and CLTV? LTV considers one mortgage, while CLTV includes all loans on the property.
• Does LTV affect interest rates? Yes, lower LTV often means lower interest rates.
• Is the LTV calculator free? Yes, our tool is 100% free, online and unlimited.