Home Equity Calculator
Home equity is what you'd walk away with if you sold today, before selling costs: current value minus what you still owe. Lenders underwrite HELOCs and cash-out refinances against a combined LTV (loan-to-value) cap, so the equity you can actually access is smaller than the equity you own.
A recent appraisal, automated estimate (AVM), or your best market estimate.
Principal you still owe — read it off your last mortgage statement.
That's 39.6% of your home value. Your current loan-to-value ratio is 60.4%.
$190,000 in equity
- Your equity
- $190,000
- Loan balance
- $290,000
- Equity %
- 39.6%
- Current LTV
- 60.4%
- Available @ 80% LTV
- $94,000
Free during pilot
How equity is calculated
Equity is the simplest line item in your financial life: current home value − current loan balance. Everything else flows from there.
Loan-to-value (LTV) is the inverse view, expressed as a percentage: balance ÷ value. Lenders care about LTV because the higher it is, the less buffer they have if values fall and they need to foreclose. That's why LTV thresholds — 80%, 85%, 90% — gate which products you qualify for.
Why "available equity" is less than equity
Lenders cap combined LTV (first mortgage + new second or cash-out) below 100% so they keep a cushion. Available equity at a given cap is:
home value × cap % − current loan balance
At 80% on a $480,000 home with a $290,000 balance, that's $384,000 − $290,000 = $94,000 of borrowable equity, even though you "own" $190,000 of equity on paper.
Equity bands and what they signal
- Strong (≥ 50% equity). Full menu of cash-out and HELOC products available. Often qualifies for the cleanest rate pricing.
- Healthy (20–50%). Standard cash-out and HELOC products available; pricing slightly worse than the > 50% tier.
- Thin (5–20%). HELOC options narrow sharply. A cash-out refinance often isn't worth it once closing costs are factored in.
- Underwater risk (< 5%). If values dip, the loan can flip to underwater (owe more than the home is worth). Most equity-tapping options are unavailable.
What this calculator deliberately excludes
- Coastal & disaster-zone overlays. Some lenders cap CLTV at 75% in evacuation or high-risk zones or for unique condo construction; not modeled here.
- Second mortgages already in place. If you already have a HELOC or piggyback loan, add its balance to the loan-balance field for the combined LTV view.
- Selling costs. If you sold, expect roughly 6–8% of the sale price to go to agent commissions, transfer taxes, title, and payoff costs. The equity number above is gross, not net-of-sale.
Frequently asked questions
How do I calculate my home equity?
Equity is your current home value minus your current loan balance. As a percentage of value it is the inverse of loan-to-value (LTV = balance ÷ value). This is a gross figure — if you sold, expect roughly 6–8% of the sale price to go to agent commissions, transfer taxes, title, and payoff costs.
How much of my equity can I actually borrow?
Less than you own. Lenders cap combined loan-to-value (your first mortgage plus any new second or cash-out) below 100% to keep a cushion, commonly at 80%. Borrowable equity is home value × cap % − current balance. On a $480,000 home with a $290,000 balance, an 80% cap leaves about $94,000 available even though you own $190,000 of equity on paper.
What is a good loan-to-value ratio?
Lower is better for pricing and product access. As a rough guide: 50%+ equity unlocks the full menu of cash-out and HELOC products at the cleanest pricing; 20–50% is healthy with standard products; 5–20% narrows options sharply; and under 5% equity risks going underwater if values dip. These are general bands, not lender guarantees.
Why might I qualify for less than this calculator shows?
Available equity is what an LTV cap allows on paper. Actual approval depends on credit, debt-to-income, property type, occupancy, seasoning rules, and lender overlays — and some lenders cap combined LTV at 75% in coastal or disaster-exposed areas or for unique condo construction. This is an estimate, not a HELOC pre-qualification.
Estimates only — not a lending decision, a HELOC pre-qualification, or a personalized cash-out recommendation. Available equity is what a lender's LTV cap allows on paper; actual approval depends on credit, debt-to-income, property type, occupancy, seasoning rules, and lender overlays. Some products cap CLTV (combined first + second) at 80% in lower-risk areas and lower in coastal or disaster-exposed ones. Methodology last reviewed: May 26, 2026.