Home Equity Calculator

Estimate your home equity, LTV, CLTV, available borrowing power, and how much you may be able to borrow with a home equity loan or HELOC.

Property Details

Current Home Value ($)

Remaining Loan Balance ($)

Growth Projection

Loan Interest Rate (%)

Remaining Loan Term (years)

Annual Home Appreciation (%)

Results

Current Home Equity

$120,000

Equity %

30.0%

LTV Ratio

70.0%

Borrowable

$40,000

Equity Growth Over Time

Year	Home Value	Loan Balance	Equity	Equity %
1	$412,000	$275,377	$136,623	33.2%
5	$463,710	$253,574	$210,136	45.3%
10	$537,567	$217,032	$320,535	59.6%
15	$623,187	$166,501	$456,686	73.3%
20	$722,444	$96,625	$625,819	86.6%
25	$837,511	$0	$837,511	100.0%
30	$970,905	$0	$970,905	100.0%

Equity = Home Value − Loan Balance

Equity = $400,000 − $280,000 = $120,000

Equity % = Equity ÷ Home Value × 100 = 30.0%

LTV = Loan Balance ÷ Home Value × 100 = 70.0%

Borrowable (80% CLTV) = $400,000 × 80% − $280,000 = $40,000

How Home Equity Works

Home equity is the difference between your home's current market value and what you still owe on your mortgage. If your home is worth $400,000 and your remaining loan balance is $280,000, your home equity is $120,000. This home equity calculator helps you estimate that amount quickly, along with your equity percentage and loan-to-value ratio.

Your equity can grow in two ways: by paying down your mortgage balance and by gaining value as your home appreciates. Every principal payment increases the share of the property you own, and rising home prices can grow that ownership stake even faster. That is why many homeowners use a mortgage calculator together with a home equity calculator to see how payments today affect borrowing power later.

Lenders often look at your loan-to-value ratio, or LTV, when deciding whether you can borrow against your home. LTV is calculated as loan balance divided by home value. In general, a lower LTV means less lender risk. Many lenders prefer your total borrowing to stay at or below 80% CLTV, which is why this calculator also estimates borrowable equity based on a common 80% limit.

If you are thinking about borrowing from your home, this page is best used as a first step. It shows how much equity you may have and how much may be available to borrow, but it does not replace lender underwriting. If you want to compare repayment costs after estimating your equity, a loan calculator can help you model a home equity loan, while our HELOC calculator can show the payment pattern for a home equity line of credit.

Frequently Asked Questions

How do I calculate how much equity I have in my home?

Home equity is calculated by subtracting your remaining mortgage balance from your home's current market value. For example, if your home is worth $400,000 and you owe $280,000, your equity is $120,000. This calculator also estimates your equity percentage and LTV ratio so you can better understand your borrowing position.

How much home equity should I have before borrowing?

Many lenders prefer borrowers to keep at least 15% to 20% equity in the home after taking out a home equity product. In practice, that often means keeping total borrowing at or below 80% to 85% CLTV. The more equity you have, the easier it may be to qualify and the lower your risk if home values fall.

How can I build equity faster?

The main ways to build equity faster are making extra principal payments, refinancing to a shorter term if the payment fits your budget, and increasing your home's value through improvements or market appreciation. Even small extra principal payments can reduce your balance faster and help equity build sooner.

How much can I borrow against my home equity?

A common rule is that lenders may allow total borrowing up to 80% of your home's value, though some allow more. That means your available borrowing amount is often estimated as: Home Value × CLTV Limit − Current Mortgage Balance. This calculator uses a standard 80% limit to give you a quick estimate.

What is the difference between a home equity loan and a HELOC?

A home equity loan usually gives you a lump sum with fixed monthly payments, while a HELOC gives you a revolving credit line that you can draw from as needed during the draw period. Both use your home as collateral, but a HELOC usually offers more flexibility and a home equity loan usually offers more predictable payments.

What does it mean to be underwater on a mortgage?

Being underwater means your loan balance is higher than your home's current market value, which is also called negative equity. When that happens, borrowing against the home is usually not an option until your equity recovers through principal paydown, home appreciation, or both. This calculator shows a warning when your balance exceeds your estimated home value.

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