Home Equity Calculator
Calculate your current home equity and available equity for a home equity loan or HELOC.
How to use this tool
- Enter current home value, mortgage balance and heloc/hel ltv limit in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your total home equity and the full breakdown beneath it.
Home equity is your ownership stake in your property. You can tap it through a HELOC or home equity loan, but keep enough equity as a buffer against market downturns.
Formula
Total Equity = Home Value − Mortgage Balance
Equity % = (Total Equity ÷ Home Value) × 100
Maximum HELOC/HEL Loan = Home Value × (LTV Limit ÷ 100)
Available Equity = max(0, Maximum Loan − Mortgage Balance)
How it works
This tool calculates both your current equity position and the borrowable equity under a home equity loan or HELOC, which lenders cap at a combined loan-to-value (CLTV) ratio. The available equity is the difference between the lender's maximum allowable loan against the property and your existing mortgage balance.
Results depend entirely on the home value estimate entered; a professional appraisal may differ materially. Lenders also apply credit and income requirements beyond the LTV limit shown here.
Worked example
Worked example
- Home value is $420,000, mortgage balance is $290,000, HELOC LTV limit is 85%.
- Total equity = $420,000 − $290,000 = $130,000.
- Equity % = ($130,000 ÷ $420,000) × 100 = 30.95%.
- Maximum loan = $420,000 × 0.85 = $357,000.
- Available equity = $357,000 − $290,000 = $67,000.
Total equity is $130,000 (30.95%); available borrowing capacity via HELOC/HEL is $67,000.
Key terms
- Home equity
- The portion of a property's value that the owner actually owns, calculated as market value minus outstanding mortgage balance.
- HELOC
- Home Equity Line of Credit — a revolving credit line secured by home equity, drawn and repaid flexibly up to a set limit.
- Combined Loan-to-Value (CLTV)
- The ratio of all loans secured by a property to its appraised value; lenders use this to cap HELOC and HEL borrowing.
- LTV limit
- The maximum combined loan-to-value ratio a lender will allow; commonly 80–90% for home equity products.
- Home Equity Loan (HEL)
- A lump-sum loan secured by home equity, repaid in fixed installments — distinct from the revolving structure of a HELOC.
Frequently asked questions
- How much equity can I borrow against?
- Most lenders allow combined loan-to-value (CLTV) of 80–90% when adding a HELOC or home equity loan on top of your first mortgage. Subtract your mortgage balance from that limit to find your available equity.
- What is a HELOC?
- A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home equity. It works like a credit card with a draw period (usually 10 years) and a repayment period (usually 20 years). Rates are typically variable.