Home Equity Calculator
Calculate your home equity, equity percentage, current LTV, potential borrowing capacity and estimated home equity loan payment.
Enter Your Home Information
Optional Home Equity Loan Estimate
Your Home Equity Results
Home Equity Breakdown
| Item | Amount |
|---|---|
| Current Home Value | $0 |
| Current Mortgage | $0 |
| Other Home Debt | $0 |
| Total Home Debt | $0 |
| Current Home Equity | $0 |
| Estimated Maximum Debt | $0 |
| Estimated Borrowing Capacity | $0 |
Home Equity Loan Payment Estimate
Home Equity After New Borrowing
Home Equity Loan Amortization
| Year | Starting Balance | Principal Paid | Interest Paid | Ending Balance |
|---|
First 12 Monthly Payments
| Month | Payment | Principal | Interest | Remaining Balance |
|---|
Calculation Status
Copyable Results
What Is Home Equity?
Home equity is the portion of your property’s current value that is not owed to lenders. It can be calculated by subtracting your total outstanding home-secured debt from the current estimated value of your home.
Home Equity = Current Home Value − Total Home Debt
How Does a Home Equity Calculator Work?
Enter your home’s estimated current value, mortgage balance and other property-secured debt. The calculator subtracts the outstanding debt from the property value to estimate your current equity.
It also calculates your equity percentage and current loan-to-value ratio.
How Much Home Equity Do I Have?
For example, if your home is worth $400,000 and you have $250,000 in total home-secured debt, your estimated home equity is $150,000.
The equity percentage in this example would be 37.5%.
How Much Equity Can I Borrow?
The amount you may be able to borrow is usually less than your total equity. Lenders can apply maximum loan-to-value or combined loan-to-value limits as well as credit, income, debt-to-income, property and underwriting requirements.
This calculator estimates borrowing capacity using the maximum CLTV percentage you select.
Home Equity Formula
Home Equity = Home Value − Total Home Debt
Equity Percentage = Home Equity ÷ Home Value × 100
LTV = Total Home Debt ÷ Home Value × 100
Home Equity Loan vs. HELOC
A home equity loan generally provides a specific amount that is repaid according to a scheduled repayment plan. A HELOC can provide a revolving line of credit subject to its terms.
Interest rates, fees, repayment structures and qualification requirements can differ, so compare the complete terms rather than focusing only on the advertised rate.
Can I Use Home Equity for Home Improvements?
Some homeowners use home equity financing for renovations, kitchen improvements, bathroom upgrades, additions, landscaping and other major projects. Using home-secured debt means your home can serve as collateral, so borrowing decisions should be made carefully.
What Can Increase Home Equity?
- Paying down mortgage principal
- Increasing property value
- Making qualifying improvements
- Reducing HELOC or second-mortgage balances
- Maintaining a lower overall home debt balance
What Can Reduce Available Equity?
- New mortgages
- HELOC balances
- Second mortgages
- Declines in property value
- New home-secured borrowing
Frequently Asked Questions
Home equity equals the current estimated home value minus total outstanding home-secured debt.
Multiply the current home value by 20%. For a $300,000 home, 20% equity would equal $60,000.
Your potential borrowing amount depends on the property value, existing debt, lender CLTV requirements and your financial qualifications.
Generally, paying down mortgage principal increases your equity if the property value and other debt remain unchanged.
Generally, yes. If the property value increases while the outstanding debt stays the same, the difference between the value and debt increases.
Some homeowners use home equity loans or HELOCs for renovations and other major expenses. Eligibility and suitability depend on the homeowner and lender requirements.
No. Total equity is the value you own in the property, while potential borrowing capacity is affected by lender CLTV limits and other requirements.