About the Home Equity Calculator
This home equity calculator shows how much of your home you actually own and how much of that equity a lender would let you borrow. Equity is your home’s current market value minus everything secured against it — your first mortgage plus any second mortgage or home equity line of credit (HELOC). The calculator also works out your loan-to-value (LTV) and combined loan-to-value (CLTV) ratios, the numbers lenders use to price and approve home equity products.
Lenders rarely let you borrow all of your equity. Most cap the combined balance of all loans at 80% to 90% of the home’s value, so your “tappable” equity is the value × the maximum CLTV minus what you already owe. Enter the limit your lender uses (85% is common) to see your borrowing room for a HELOC, home equity loan or cash-out refinance.
It also estimates the equity you would walk away with if you sold, after agent commissions and other selling costs. For the most accurate result use a recent appraisal or a realistic sale price from comparable homes, because automated online estimates can be off by several percent.
With the default inputs, the current home equity is $250,000.00. Change any value above to recalculate instantly.
How to use the home equity calculator
- 1Enter your home’s current market value from an appraisal or recent comparable sales.
- 2Enter your mortgage balance from your latest statement.
- 3Add any HELOC or second mortgage balances.
- 4Set the maximum CLTV your lender allows (85% is typical).
- 5Read your equity, CLTV and tappable equity.
Formula and method
Home equity is the current market value minus every loan secured by the home. The first-mortgage LTV divides the mortgage balance by the value, and the combined LTV adds any HELOC balance or second mortgage before dividing.
Lenders cap total borrowing at a maximum CLTV, so the amount you can borrow is the value multiplied by that cap minus what you already owe — never less than zero. Equity after selling subtracts selling costs (a percentage of the value) from your equity to approximate what you would receive at closing before any capital gains tax.
- V
- Current market value of the home
- M
- First mortgage balance
- L
- Other liens: HELOC or second mortgage balances
Worked examples
$500,000 home with $250,000 owed
Subtracting the $250,000 mortgage from the $500,000 value leaves $250,000 of equity (50%). An 85% CLTV cap allows $425,000 of total borrowing, so up to $175,000 is tappable. After 7% selling costs you would net about $215,000.
Existing HELOC and a 90% CLTV lender
Total liens are $320,000, a CLTV of 76.19% and $100,000 of equity. A 90% cap allows $378,000 in total, leaving $58,000 that could still be borrowed.
Recent buyer with 10% equity
With $35,000 of equity (90% LTV) the loan already exceeds the 85% cap, so nothing is tappable. Selling would leave only about $10,500 after 7% selling costs.
Frequently asked questions
How do I calculate my home equity?+
Subtract the balance of your mortgage and any other loans secured by the home from its current market value. A $400,000 home with a $260,000 mortgage has $140,000 of equity, or 35%.
How much equity can I borrow?+
Most lenders let your combined loans reach 80% to 90% of the home’s value. Multiply the value by that percentage and subtract what you owe: at 85% on a $400,000 home with $260,000 owed you could borrow about $80,000.
What is the difference between LTV and CLTV?+
LTV compares only your first mortgage with the home’s value. CLTV (combined loan-to-value) includes every loan against the home, such as a HELOC or second mortgage, and is what lenders use for home equity products.
How can I increase my home equity faster?+
Make extra principal payments, choose a shorter loan term, add value with renovations that raise the sale price, and avoid borrowing against the home. Rising local prices also add equity, but you cannot control that.
Is home equity the same as what I would get if I sold?+
Not quite. Selling costs such as agent commissions, transfer taxes and closing fees typically take 6% to 10% of the price, so the cash you receive is your equity minus those costs.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.