Your home is likely the most valuable thing you own, and every mortgage payment and every year of price growth turns more of it into equity you can actually tap. This home equity calculator shows you exactly how much of your house you truly own, what your loan-to-value (LTV) ratio looks like to a lender, and roughly how much cash you could unlock with a home equity line of credit (HELOC) or a home equity loan.
Plug in your current home value and your remaining mortgage balance, and the result card updates instantly. You can also adjust the maximum LTV your lender allows to stress-test how much more (or less) you could borrow at a different credit profile.
How to Use
- Enter the Current Home Value — what your property would realistically sell for today. Use a recent appraisal, a Zestimate, or a comparative market analysis from an agent rather than your original purchase price, because equity depends on today's market, not what you paid.
- Type your Remaining Mortgage Balance — the unpaid principal left on your first mortgage. Pull this from your latest loan statement. If you have a second mortgage or home equity loan already, add it to this number so the calculation reflects all secured debt.
- Set the Max LTV You Qualify For. The default is 80%, which is the most common ceiling lenders use. If your credit is excellent and your income is stable, some banks will go to 85% or even 90%; if your credit is thinner, expect more like 70–75%.
- Read the result card: your Home Equity (dollars you own outright), your Equity Percentage, your Loan-to-Value (LTV), and your Usable HELOC Amount — the cash you could likely draw.
The math is deliberately simple. Equity is just value minus debt. LTV is debt divided by value. And the amount you can borrow is the lender's maximum LTV times the value, minus whatever you already owe.
The Formula Behind the Numbers
Lenders think about your house in three basic relationships:
- Home Equity = Current Value − Mortgage Balance. If your home is worth $500,000 and you owe $320,000, your equity is $180,000.
- Equity Percentage = Equity ÷ Value × 100. $180,000 ÷ $500,000 = 36% of the home is yours free and clear.
- Loan-to-Value (LTV) = Mortgage Balance ÷ Value × 100. $320,000 ÷ $500,000 = 64%. LTV is the single number lenders scrutinize most when deciding whether to lend you more.
- Usable HELOC Amount = (Max LTV × Value) − Balance. At an 80% LTV ceiling on a $500,000 home, your total allowed debt is 0.80 × $500,000 = $400,000. Subtract the $320,000 you already owe and you have $80,000 you could potentially borrow.
If that last figure lands below zero, it simply means your existing debt already exceeds the lender's maximum — the calculator floors it at $0, because you cannot borrow against equity you do not have.
Why LTV Matters
LTV is how lenders measure risk. The lower your LTV, the more of a buffer the bank has if home prices fall. Aiming for an LTV at or below 80% is the classic goal for a reason: below that threshold you usually avoid private mortgage insurance (PMI) on a new purchase, and it is where most favorable home-equity terms kick in. Drop below 70% LTV and you start seeing the best rates; push above 85% and many lenders either decline you or charge a premium.
Remember that equity is not cash in your pocket until you either sell or borrow against it. A HELOC or home equity loan turns that equity into usable money, but it also adds a lien and a monthly payment — so it is best used for investments in the home itself, debt consolidation at a lower rate, or emergencies, not discretionary spending.
Examples
Example 1 — The $500,000 starter home. A homeowner bought in five years ago and now estimates the home at $500,000. The original loan has amortized down to $320,000. Equity is $180,000 (36%), LTV is 64%, and at a standard 80% max LTV the usable HELOC is $80,000. That is enough to cover a kitchen remodel or consolidate a couple of high-interest credit cards.
Example 2 — A paid-off property. With the mortgage fully paid down to $0 on a $300,000 home, equity is the full $300,000 (100%), LTV is 0%, and the 80% LTV ceiling opens up a $240,000 line of credit. This is the most flexible borrowing position a homeowner can be in.
Example 3 — A high-value property. On a $1,500,000 home with $900,000 still owed, equity is $600,000 (40%), LTV is 60%, and an 80% LTV cap allows total debt of $1,200,000 — leaving $300,000 of usable credit. Jumbo home-equity products sometimes cap total LTV lower, so confirm the ceiling with your lender on properties this size.
FAQ
How much equity do I have in my home?
Subtract your remaining mortgage balance from your home's current market value. If your home is worth $500,000 and you owe $320,000, your equity is $180,000, or 36% of the value. Enter both figures above for an instant, exact number.
What is a good loan-to-value (LTV) ratio?
An LTV at or below 80% is the standard target: it removes PMI on purchases and unlocks the most favorable home-equity terms. Below 70% LTV usually earns the best rates, while above 85% many lenders decline or charge more.
How much can I borrow with a HELOC?
Most lenders cap total debt at 80% of your home's value. Multiply your home value by 0.80 and subtract your existing mortgage balance. On a $500,000 home with $320,000 owed, that is $400,000 − $320,000 = $80,000 of available credit.
What is the difference between a HELOC and a home equity loan?
A home equity loan gives you a single lump sum at a fixed rate, while a HELOC is a revolving line of credit you draw from and repay over time, usually at a variable rate. This calculator estimates your potential borrowing capacity either way, since both use the same equity and LTV logic.
Do I need 20% equity to get a home equity loan?
Not always. Many lenders require only 15–20% equity (an 80–85% LTV) to approve a home equity loan or HELOC, and some specialized programs go higher. More equity always improves your rate and approval odds.
Does rising home value automatically give me more equity?
Yes. Because equity is value minus debt, when your home appreciates, your equity grows even if your mortgage balance barely changes. Rising prices and regular principal paydown both push your LTV lower over time.
Should I borrow against my home equity?
Use it for purposes that build long-term value — home improvements, higher-interest debt consolidation, or emergencies. Avoid spending it on depreciating goods or vacations, because you are securing the debt against your house and could lose it if you cannot repay.
Disclaimer
This home equity calculator is provided for informational purposes only and does not constitute financial, lending, or tax advice. Estimates are based on the inputs you enter and standard equity and LTV formulas; actual approval, credit limits, and rates vary by lender, credit profile, location, and program. Your true maximum LTV and available credit depend on your individual underwriting. Always confirm your terms directly with a licensed lender before taking out a home equity loan or line of credit.