LTV and Equity Calculator for Investment Property
1. Value & liens
2. Target leverage
How this calculator works
Leverage math is simple; the judgment is in the value you use and which liens count.
LTV vs CLTV. LTV uses the first lien only. CLTV adds every recorded lien. Equity products are governed by CLTV, which is why a modest second can block a large first-lien cash-out.
Available proceeds. Target LTV × value − existing liens. That is a gross figure: closing costs, prepayment penalties on the loan being retired, and escrow shortages all reduce what reaches you.
Seasoning. Many programs limit cash-out to the purchase price plus documented improvements until the property has been owned for a set period, so a recent purchase may not price off today's value.
Assumptions, formulas, and limitations for every tool on this site are documented in our calculator methodology.
Current DSCR pricing for income-qualified rentals
Pricing responses returned for a sample business-purpose DSCR scenario on non-owner-occupied investment property, including rate, points or lender credit, and estimated principal and interest from the same quote. Pricing changes intraday and is not a loan approval, commitment, or guarantee of financing.
Live pricing unavailable — no current pricing response.
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The three cards above are featured examples from the current snapshot. Enter your own property, credit tier, leverage and rent to see every eligible option for your deal.
Rate & Pricing Disclosure: This quote is an indication for the scenario entered and the pricing available at the time shown. Rates and terms are subject to change without notice and may change or may not be available at commitment or closing. This is not a rate lock, loan approval, commitment to lend or offer of credit. APR reflects applicable borrower-paid finance charges and pricing credits for this quote and may be the APR returned with the quote or our own audited calculation where verified borrower-paid finance charges outside the quoted price apply. Additional lender and third-party costs may apply and may not be included in the APR. Payment shown is principal and interest only and excludes taxes, insurance, HOA dues and other applicable costs, so your actual payment will be higher. Simply Approved Mortgages LLC is a mortgage broker, not the funding lender. Business-purpose, non-owner-occupied investment property only. Equal Housing Opportunity.
APR reflects applicable borrower-paid finance charges and pricing credits for this quote. Depending on the option, the APR shown is either the APR returned with that quote or our own audited calculation, used where verified borrower-paid finance charges outside the quoted price apply. Other lender and third-party costs may apply and may not be included in the APR.
Estimated payment is principal and interest only and does not include property taxes, insurance, HOA dues, flood insurance, escrows or other applicable costs.
LTV, CLTV and equity FAQ
Straight answers investors ask before they run the deal.
How do I calculate LTV?
Loan-to-value is the first mortgage balance divided by the property's appraised value or purchase price, whichever the program uses. A $300,000 loan against a $400,000 value is 75% LTV.
What is CLTV and why does it matter?
Combined loan-to-value adds every lien — first mortgage plus any second lien, HELOC line, or seller carry — and divides by value. Equity products are capped on CLTV, so an existing second can limit what a new lien can advance even when the first-lien LTV looks low.
How much equity can I pull out of a rental?
Take the program's maximum LTV or CLTV, multiply by value, and subtract the liens that remain. This calculator shows that figure as available proceeds at your target. Actual maximums vary by program, FICO, property type, and occupancy history.
Is a HELOC counted at the balance or the full line?
Most programs count the full committed line, not the drawn balance, when calculating CLTV — because the borrower can redraw it. Model the line amount if you want the conservative answer.
Does an appraisal replace my value estimate?
Yes. Any figure here is an assumption until an appraisal or a lender-accepted valuation is completed. Automated estimates are a screening tool, not a valuation.
What LTV do DSCR cash-out refinances typically max out at?
Cash-out DSCR programs commonly cap leverage lower than a purchase, often in the 65-75% LTV range depending on credit, property type, and DSCR. The exact cap varies by lender and is not fixed, so treat any percentage here as a starting point for shopping programs.
Does property type change my maximum LTV?
Yes, single-family and warrantable condos generally support higher maximum LTV than 2-4 unit properties, non-warrantable condos, or short-term rentals, which are often capped several points lower. Rural or unique properties can face further reductions.
How does DSCR interact with my LTV cap?
A lower DSCR often forces a lower maximum LTV even if the credit and property otherwise qualify for higher leverage, since many pricing grids tier maximum LTV by DSCR band. Improving DSCR — through a larger down payment or interest-only structure — can unlock a higher LTV tier.
Can I combine a HELOC with a DSCR first mortgage?
It is possible on some programs, but the HELOC's full line still counts toward CLTV, which can limit how much the first mortgage is allowed to advance. Run the combined numbers before assuming both liens will fit under the program's CLTV ceiling.
What happens if my equity calculation is based on a stale value?
An outdated or optimistic value estimate can make available equity look larger than it really is, since actual proceeds are capped against the appraised value the lender orders, not your own estimate. Refresh comps or get a broker price opinion before relying on the number for planning.
Is CLTV or LTV used for a rate-and-term refinance?
Rate-and-term refinances typically only consider LTV against the new loan amount replacing the existing lien, since there is no cash out to weigh against subordinate liens. CLTV becomes the binding constraint mainly on cash-out refinances or when a second lien remains in place.
Why does my usable equity look smaller than my total equity?
Total equity is value minus all liens, but usable equity is capped by the program's maximum LTV or CLTV, which is almost always below 100%. The gap between the two is the cushion the lender requires you to leave in the property.
Turn equity into your next acquisition
Share the property and lien detail and a licensed loan officer will outline the equity structures available for business-purpose investment property.
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