Home Equity Calculator
Find your home equity and borrowable amount.
Lenders often allow ~80–85%
Results update as you type.
How it works
Home equity is the portion of your home you truly own, and this calculator finds it along with how much you might borrow against it. You enter your home's current value and your remaining mortgage balance, and optionally the maximum loan-to-value ratio your lender allows, and it returns your equity, your equity as a percentage of the home's value, and the amount you could potentially borrow. Equity is simply the home value minus the mortgage balance, and it grows as you pay down the loan and as the home appreciates. The equity percentage shows how much of the home you own outright versus how much the lender effectively holds. The borrowable amount reflects how home equity loans and HELOCs work: lenders let you borrow against your equity but keep a cushion, usually capping your total loans at around 80 to 85 percent of the home's value, so the amount available is the value times that cap minus what you still owe on the first mortgage. Home equity is a major source of household wealth and can be tapped for renovations, debt consolidation, or major expenses through a home equity loan or line of credit, though borrowing against your home puts it at risk if you cannot repay. This is an estimate; actual borrowing limits depend on your credit, income, and the lender's specific rules. Enter your home value, balance, and max LTV to find your equity.
Equity = value − balance ; borrowable = value × max LTV − balance
Home equity is your home's current value minus what you still owe on the mortgage. Lenders let you borrow against equity up to a maximum loan-to-value ratio, often around 80 to 85 percent, so the potentially borrowable amount is the value times that ratio minus your existing balance.
Source:Real estate finance
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter home value and mortgage balance.
- 2
Adjust the options
Adjust max loan-to-value if they apply — sensible defaults are already set.
- 3
Read your result
Home equity updates instantly as you type — no button to press.
Frequently asked questions
What is home equity?
Home equity is the portion of your home's value that you own outright, calculated as the current market value minus your remaining mortgage balance. It grows as you pay down the loan and as your home appreciates. Equity represents real wealth you can eventually access through selling, a home equity loan, or a line of credit.
How much can I borrow against my home?
Lenders typically let you borrow against your equity up to a combined loan-to-value ratio of about 80 to 85 percent of the home's value. So the borrowable amount is roughly the home value times that percentage minus your existing mortgage balance. Your actual limit also depends on your credit, income, and the lender's rules.
What is loan-to-value ratio?
Loan-to-value, or LTV, is the ratio of your loan balance to your home's value, expressed as a percentage. Lenders cap the combined LTV when lending against equity to keep a safety cushion, commonly at 80 to 85 percent. A lower LTV means more equity and typically better borrowing terms and lower risk for the lender.
How can I access my home equity?
Common ways to tap equity include a home equity loan, which provides a lump sum at a fixed rate, a home equity line of credit (HELOC), which works like a revolving credit line, and cash-out refinancing, which replaces your mortgage with a larger one. Each has different costs and terms, and all use your home as collateral.
Is borrowing against home equity risky?
It can be. Because your home secures the debt, failing to repay a home equity loan or HELOC can lead to foreclosure, putting your home at risk. Borrowing against equity also reduces the wealth you have built. Use it thoughtfully, for value-adding purposes like renovations or high-interest debt consolidation, and ensure the payments fit your budget.