Home Equity Calculator
Enter what your home is worth and what you still owe to see your equity in dollars and as a share of the home, your loan-to-value ratios, and how much of that equity a lender would let you borrow — plus how it grows year by year.
Free to use No sign-up needed Updates as you type
Default interest rate: 7.18% — Freddie Mac 30-year fixed average, week of Nov 5, 2026. Enter the rate from your own Loan Estimate.
How the home equity calculator works
Home equity is the part of your home you own outright: what the home is worth today minus everything you still owe on it — the first mortgage plus any home equity loan, HELOC or second mortgage. A $450,000 home with a $260,000 balance carries $190,000 of equity, or 42% of its value. This calculator shows that figure in dollars and as a percentage, alongside your loan-to-value ratio (the mortgage alone against the value) and your combined loan-to-value (every loan together).
Owning equity and being able to borrow it are different things. Lenders cap the total of all loans on the home at a share of its value — commonly 80–85%, and up to 90% with some lenders — and keep the rest as a cushion in case prices fall. So the amount you could borrow is the value times that limit, minus what you already owe. The projection then shows how your equity grows as each payment retires principal and as the home's value changes, so you can see when a larger line of credit or a cash-out refinance becomes possible.
Worked example: with current home value of $450,000, mortgage balance of $260,000 and lender limit (max combined LTV) of 85.00%, the home equity calculator shows your home equity of $190,000.
- You could borrow (85% CLTV)
- $122,500
- Loan-to-value (LTV)
- 57.8%
- Combined LTV (CLTV)
- 57.8%
- Equity you keep
- $67,500
| If your home is worth | Your home equity |
|---|---|
| $400,000 | $140,000 |
| $450,000 | $190,000 |
| $500,000 | $240,000 |
| $550,000 | $290,000 |
Mortgage balance held at $260,000 and no other loans — only the value changes.
The formula
Equity = current home value − mortgage balance − other loans on the home. Equity % = equity ÷ home value. LTV = mortgage balance ÷ home value; combined LTV (CLTV) = all loans ÷ home value. Amount you could borrow = home value × CLTV limit − all loans (never below zero). Equity you keep = home value × (1 − CLTV limit). For the projection, each year's mortgage balance comes from the standard amortization schedule at your rate and remaining term, and the value grows at your yearly rate: value × (1 + growth)^years.
How every calculator here computes, what it assumes and how the defaults stay current: our methodology.
- Equity is only as accurate as the home value you enter. Online estimates can miss by several percent either way; a lender orders an appraisal before it sets a limit.
- The amount you could borrow is an equity ceiling. Lenders also check your credit score, income and debt-to-income ratio, which can lower the figure.
- The projection assumes you make every scheduled payment on the first mortgage and no extra ones, and keeps any other loans at today's balance.
- Home values do not rise in a straight line — the yearly change is an assumption you control, and a 0% or negative setting shows the downside.
- Selling costs are not deducted. If you plan to sell rather than borrow, agent commission and closing costs come out of the equity you see here.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender or a licensed advisor.
Questions about the home equity calculator
What is the difference between my equity and what I can borrow?
Equity is everything above what you owe; borrowable equity is only the part above the lender's limit.
With a $450,000 value, a $260,000 balance and an 85% limit, you own $190,000 of equity but could borrow about $122,500 — the remaining $67,500 stays in the home as the lender's cushion.
How fast does home equity grow?
Two ways at once. Each mortgage payment retires some principal — slowly in the early years, faster later — and any rise in the home's value adds to equity on top.
Early in a 30-year loan most of the payment is interest, so price changes usually move equity more than payments do. The year-by-year table above separates the two for your numbers.
What does it mean to have negative equity?
You owe more than the home is worth, often called being underwater. It usually follows a price drop soon after buying with a small down payment.
You cannot borrow against the home or refinance easily until the gap closes, and selling would mean bringing cash to closing. Paying down principal or waiting for values to recover are the usual ways out.
Is my information saved or shared?
No. Every calculation runs entirely in your browser. We never store, transmit or sell the numbers you enter.
How do you calculate the equity in your home?
Subtract everything you owe on the home — the mortgage balance plus any home equity loan or HELOC — from what it is worth today. A $400,000 home with $300,000 owed has $100,000 of equity, or 25%.
Use your latest mortgage statement for the balance and a recent appraisal or sales comparison for the value.
How much equity can I borrow from my home?
Usually enough to bring all loans on the home up to 80–85% of its value, and up to 90% with some lenders.
Multiply the value by that limit and subtract what you owe: a $400,000 home with a $250,000 balance at 85% leaves about $90,000 to borrow.
Can I borrow money against my house?
Yes, if you have equity above the lender’s limit and qualify on credit and income. The three usual ways are a HELOC (a revolving line), a home equity loan (a fixed lump sum) and a cash-out refinance (a new, larger first mortgage). All three put the home up as collateral.
What is the cheapest way to borrow against home equity?
It depends on rates and how long you need the money. A HELOC often has low upfront costs but a variable rate; a home equity loan fixes the rate and payment; a cash-out refinance may carry the lowest rate but resets your whole mortgage and costs more to close — it rarely pays if your current rate is lower.
Sources
How the figures on this site are calculated and tested: methodology · editorial policy.
HELOC Calculator
Estimate your available home-equity line of credit and the draw and repayment payments.
Home Equity Loan Calculator
Calculate the fixed monthly payment and total interest on a lump-sum home-equity loan.
Mortgage Calculator
Estimate your monthly principal-and-interest payment and see a full amortization schedule for any home loan.
Amortization Calculator
Generate a complete amortization schedule for any fixed-rate loan, every payment split into principal and interest.
Mortgage Calculator with Taxes & Insurance
See your full PITI payment: principal, interest, property tax, homeowners insurance, PMI and HOA dues.
Mortgage Calculator with PMI
Include private mortgage insurance in your payment and find out exactly when PMI drops off.