Home Equity Calculator

Please fill in the required fields with values greater than 0.
–home equity
–equity (% of value)
–current loan-to-value
–available to borrow

Estimate only. Lenders set their own limits, usually 80 to 85 percent combined loan-to-value, and may charge fees. This is not financial advice.

How to use this calculator

Enter the current value of your home, the balance left on your mortgage and the maximum loan-to-value your lender allows. Press Calculate to see your equity and how much you could borrow with a home equity loan or HELOC.

The formula

Equity = home value − mortgage balance
Loan-to-value = mortgage balance ÷ home value
Available to borrow = home value × maximum LTV − mortgage balance

Example: A $500,000 home with a $300,000 mortgage has $200,000 of equity (40%). At an 80% limit, you could borrow up to $100,000.

Understanding your home equity numbers

This calculator shows how much of your home you own outright, your current loan-to-value ratio and an estimate of how much a lender might let you borrow. Each number answers a slightly different question, so it helps to read them together.

What each result means

  • Home equity: The dollar value of your ownership. It grows as you pay down the loan and as the home’s value rises.
  • Equity percentage: Your equity as a share of the home’s value. Lenders often look at this when deciding on refinancing or removing mortgage insurance.
  • Loan-to-value (LTV): Your mortgage balance divided by the home’s value. Lower is better for lenders.
  • Available to borrow: A rough ceiling for a home equity loan or HELOC, based on the maximum LTV you enter.

A real-world example

Say your home is worth $400,000 and you owe $250,000. Your equity is $150,000, or 37.5% of the home’s value, and your LTV is 62.5%. If a lender allows 85% combined LTV, the maximum total debt is $340,000. Subtract your $250,000 balance and you could borrow up to about $90,000. At an 80% limit, that drops to $70,000.

Main factors that change your equity

  • Home value: The number you enter is the biggest variable. Online estimates can be off. A lender will order an appraisal.
  • Loan balance: Use the payoff balance from your latest statement, and include any second mortgage or HELOC.
  • Market changes: Equity can shrink if local prices fall, even while you keep paying the loan.
  • Improvements: Some projects can raise value, but few return their full cost.

Common mistakes

  • Using an optimistic home value. Try a conservative number to see a safer range.
  • Forgetting closing costs. Home equity loans and HELOCs may have fees that reduce what you actually receive.
  • Treating “available to borrow” as approval. Lenders also check credit, income and debt-to-income ratio.

Planning advice

Borrowing against your home puts the home at risk if you cannot repay. Use equity for goals that hold value, such as needed repairs, and compare the cost against other options. This calculator is for education only. Talk with a qualified financial advisor or lender before taking on new debt.

Frequently asked questions

What is home equity?
It is the part of your home that you own, which is the market value minus what you still owe on the mortgage.
How do I calculate home equity?
Subtract your mortgage balance from the current value of your home.
What is a HELOC?
A home equity line of credit lets you borrow against your equity as you need it, up to a limit, and repay it over time.
How much equity can I borrow against?
Most lenders let you borrow up to 80 to 85 percent of the home value, including your first mortgage.
How can I build equity faster?
Make a larger down payment, pay extra on the principal and keep the home in good condition so its value rises.
What is the difference between a home equity loan and a HELOC?
A home equity loan gives you a lump sum up front, usually at a fixed rate with set monthly payments. A HELOC is a revolving credit line you draw from as needed, often with a variable rate. A loan suits one known expense. A HELOC suits ongoing or uncertain costs, like a remodel done in stages.
Does home equity count as part of my net worth?
Yes. Net worth is everything you own minus everything you owe, and your home’s value minus its mortgage is part of that. However, home equity is not cash. You can only access it by selling, refinancing or borrowing against the home, and each of those has costs.
Can I remove PMI once I have enough equity?
On many conventional loans, you can ask the lender to cancel private mortgage insurance once your balance reaches 80% of the home’s original value, if you meet their conditions. It usually ends automatically at 78%. Some lenders allow removal based on a new appraisal. FHA loans follow different rules, so check with your servicer.