About the Home Equity Calculator
Home equity is the part of your home you actually own — its current value minus what you still owe. It grows as you pay down the mortgage and as the home appreciates. Lenders express the flip side as loan-to-value (LTV). This calculator shows your equity, your LTV, and an estimate of how much you could borrow against it based on typical lender limits.
How it’s calculated
Equity = home value − mortgage balance. Loan-to-value = mortgage balance ÷ home value. Estimated available to borrow = (home value × maximum combined LTV) − mortgage balance, where lenders typically cap combined LTV around 80–85%.
Example calculation
A home worth $450,000 with a $280,000 balance has $170,000 in equity — a 62% LTV. At an 85% combined-LTV limit, you could borrow up to roughly $102,500 against it.
Frequently asked questions
What is loan-to-value?
LTV is your mortgage balance divided by the home's value, as a percentage. A lower LTV means more equity and generally better borrowing terms.
How much of my equity can I borrow?
Lenders usually limit combined loans to about 80–85% of the home's value, so you can't borrow all of your equity. The exact amount depends on the lender, your credit, and income.
Does equity include appreciation?
Yes. Equity is based on the home's current market value, so rising home prices increase your equity even before you pay down more principal.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.