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Home Equity Calculator

Estimate your home equity by comparing your home's current value with your remaining mortgage balance.

Your Details

Overview

A home equity calculator helps you estimate how much of your property you own outright by comparing your home's current value with your remaining mortgage balance and any other secured debt. It can also show how much equity may be available if you compare your debt level with a target loan-to-value ratio.

How it works

The calculator first adds up all debt secured against your home. It then subtracts that total from your current home value to estimate your home equity. Your equity percentage is calculated by dividing equity by home value, while the loan-to-value ratio is calculated by dividing total secured debt by home value. To estimate available equity, the calculator compares your current debt with the maximum debt allowed under your chosen loan-to-value limit.

How to use this calculator

  1. 1Enter your home's current market value.
  2. 2Add your remaining mortgage balance.
  3. 3Include any other liens or secured debt on the property.
  4. 4Set a target loan-to-value ratio if you want to estimate available equity.
  5. 5Review your estimated equity, equity percentage, and loan-to-value ratio.

Example Calculation

Current home value

$500,000

Remaining mortgage balance

$300,000

Other liens or secured debt

$20,000

Target maximum loan-to-value

80%

Estimated home equity

$180,000

If your home is worth $500,000 and your total secured debt is $320,000, your estimated home equity is $180,000. That means you own about 36.0% of the home's value outright, and you may have around $80,000 in available equity before reaching an 80% loan-to-value ratio.

Frequently asked questions

What does a home equity calculator estimate?

It estimates the difference between your home's current value and the total debt secured against it.

How is home equity different from home value?

Home value is the current market price of the property, while home equity is the portion of that value you own after subtracting secured debt.

What is a loan-to-value ratio?

Loan-to-value, or LTV, is the percentage of your home's value that is financed by secured borrowing.

Can I borrow all of my home equity?

Usually not. Many lenders cap borrowing based on a maximum loan-to-value ratio and their own affordability checks.

Should I include a home equity loan or lien?

Yes. Any debt secured against the property should be included for a more realistic equity estimate.

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Assumptions and warnings

Assumptions

  • Your home value estimate reflects current market conditions.
  • All secured debt entered is accurate and up to date.
  • Available equity is estimated using your chosen maximum loan-to-value ratio.
  • Results are estimates only and do not include fees, lender criteria, or property valuation costs.

Warnings

  • This calculator provides an estimate only and is not financial advice.
  • Lenders may use different valuation methods and borrowing criteria.
  • Speak to a qualified professional before making major borrowing decisions.