Home Equity Calculator
See your home equity and an estimate of how much you could borrow against it.
How to use the Home Equity Calculator
- Enter your home's current value.
- Enter the balance still owed on your mortgage.
- Enter the lender's maximum combined loan-to-value ratio.
- See your equity and how much you could borrow against it.
Available = (Home value × max LTV) − Mortgage balance
About the Home Equity Calculator
Home equity is the part of your home you truly own — its value minus what you still owe on the mortgage. This calculator shows that figure and, more usefully, estimates how much of it you could actually borrow through a home equity loan or line of credit (HELOC). Lenders do not let you borrow every dollar of equity; they cap total borrowing at a combined loan-to-value ratio, often 80–90% of the home's value, and this tool subtracts your existing mortgage from that ceiling to show what is left.
The gap between your equity and what you can borrow surprises people. On a $400,000 home with a $250,000 mortgage you have $150,000 of equity, but at an 85% cap only $90,000 is borrowable, because the lender counts the mortgage against the same limit. Raising the home value or paying down the mortgage both widen that room.
This is a borrowing-capacity estimate, not an approval. Lenders also weigh your income, credit score and ability to repay, and an appraisal sets the value they use rather than your own estimate. To turn a borrowed amount into a monthly payment, use the loan calculator; to check overall affordability, the debt-to-income calculator.
Frequently asked questions
What is the difference between equity and what I can borrow?
Equity is your home's value minus your mortgage. What you can borrow is lower, because lenders cap total borrowing at a percentage of the value (often 80–90%) and count your existing mortgage against that limit.
What is a good loan-to-value cap to use?
Many lenders allow a combined loan-to-value of 80–85%, some up to 90%. Use the figure your lender quotes; a lower cap means less available to borrow but usually better terms.
Does this guarantee I can borrow that amount?
No. It estimates capacity based on value and LTV. Actual approval also depends on your income, credit and a professional appraisal of the home.