Know What You Own

Home Equity Calculator

Estimate your home equity, LTV, and possible borrowing power for a HELOC, home equity loan, or future sale.

Your Estimated Home Equity

$180,000

Property Details

$
$
$
$
%
$
✓ You have enough usable equity for this amount.

Your Borrowing Power

Usable Equity
$80,000

Estimated cash available for a HELOC or Cash-Out Refinance.

Home Value Composition64.0% Current LTV
Total Debt
$320,000
Usable Equity
$80,000
Retained Equity
$100,000
Max Debt Allowed (LTV)
$400,000
Net Proceeds if Sold
$150,000
Home Value - Total Debt - 6% Selling Costs

Know What You Own

Home equity is the part of your home’s value that belongs to you after subtracting what you still owe.

A home equity calculator helps you estimate your ownership value, loan-to-value ratio, and how much equity may be available for a HELOC, home equity loan, cash-out refinance, or future sale.

Equity Formula

Home equity is simple:

Home Equity = Current Home Value − Mortgage Balance

If your home is worth $500,000 and you owe $320,000, your estimated equity is $180,000.

Key Inputs

For a cleaner estimate, enter:

  • Current home value
  • Mortgage balance
  • Second mortgage balance
  • HELOC balance
  • Est. selling costs
  • Target borrowing amount

LTV Check

Loan-to-value ratio shows how much of your home is still financed.

A lower LTV usually means stronger equity. A higher LTV means less room for borrowing or refinancing.

Usable Equity

You may not be able to borrow all your equity.

Lenders usually require you to keep some equity in the home. Your available amount depends on appraisal value, credit profile, income, debts, loan type, and lender limits.

Borrowing Options

Your equity may support:

  • HELOC
  • Home equity loan
  • Cash-out refinance
  • Home improvements
  • Debt consolidation
  • Major planned expenses

Each option has different payment terms, interest costs, and risk.

Risk Check

Using equity means borrowing against your home.

Before moving forward, review the new payment, fees, interest rate, repayment timeline, and whether the money improves your financial position.

Equity Planning Note

A home equity calculator helps you see the real value built into your property. By checking home value, loan balance, LTV, and usable equity, you can decide whether borrowing, refinancing, or holding your equity is the smarter move.

Quick Answers

How do you calculate home equity?

Home equity is calculated by taking the current market value of your home and subtracting the total amount you still owe on your mortgage(s).

What is the difference between total equity and usable equity?

Total equity is the raw difference between your home's value and your loan balance. Usable equity is the portion of that equity you can actually borrow against, since lenders usually require you to leave 15% to 20% of your equity untouched.

What is a good Loan-to-Value (LTV) ratio?

For borrowing against your equity, lenders typically want your LTV to be 80% or 85% or lower after the new loan is added. An LTV below 80% is generally considered good.

Can I borrow 100% of my home equity?

Usually, no. Most lenders cap total borrowing at 80% to 85% of your home's total value to protect themselves against market downturns.