Home Equity Calculator
Calculate your current home equity, equity gain since purchase, and maximum HELOC or cash-out refinance amount.
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How to use this calculator
- 1
Enter your home's current market value (from a recent appraisal or comparable sales).
- 2
Enter the original purchase price and your remaining mortgage balance.
- 3
Set the maximum LTV your lender allows for a HELOC or cash-out refinance (typically 80–90%).
- 4
See your current equity, equity gain, and how much you can borrow.
Frequently asked questions
What formulas does this tool use?
This tool uses equity = current home value − remaining mortgage balance, equity % = equity ÷ value × 100, and LTV = mortgage balance ÷ value × 100. Maximum borrowing is home value × maximum LTV % − mortgage balance, never below zero. With the defaults of $450,000, $280,000 and 85%, equity is $170,000 (37.8%), LTV is 62.2% and the maximum is $102,500.
Is “maximum HELOC / cash-out amount” what a lender will give me?
No. It is only the arithmetic ceiling at the loan-to-value limit you type in. Lenders also look at credit, income, the type of property and other factors, and limits vary by lender and country. If you have other loans secured on the home, add them to the balance field so the figure reflects combined loans.
What is the difference between equity gain and appreciation?
The “Equity gain since purchase” line is current value minus purchase price, but not below zero, so it shows $0 if the home is worth less than you paid. The “Home value appreciation” line uses the same difference and shows negative numbers. Neither includes the part of your equity that came from paying down the mortgage.
What if the mortgage is paid off?
A balance of zero is used as zero. Equity then equals the full home value (100.0%), LTV is 0.0%, and the maximum at 80% on a $600,000 home is $480,000. Clearing the balance box has the same effect, because an emptied number box becomes 0 rather than a default balance.
What happens if I owe more than the home is worth?
Equity is shown as a negative number and the equity percentage is negative too. The maximum borrowing is $0 and the borrowing line reads “Insufficient equity at current LTV limit”. If your LTV is above the limit you entered, the same message appears even when equity is positive.
How is the maximum LTV entered?
As a percentage between 0 and 100, with 85 as the default. A value above 100 is capped at 100 and below 0 at 0. A home value of 0 (including an emptied box) shows an error asking for a value above 0, because the percentages would divide by it. Dollar signs are shown whatever currency you work in, and the figures are not adjusted for it.
Does the tool estimate my home’s value?
No. You supply the current value, so the results are only as good as that number. An appraisal, a valuation from your lender or comparable sales will each give a different figure, and a change of a few percent can shift the borrowing line by tens of thousands.
Home equity: value, balance and the borrowing ceiling
Equity and loan-to-value from two numbers
Equity is the gap between what the home is worth and what you owe on it. The tool shows that gap in dollars and as a share of value, plus the current loan-to-value ratio, which is the same relationship from the lender’s side: mortgage balance over value. The two percentages always add to 100%. Appreciation is measured separately, as current value minus original purchase price, so you can see how much of your position came from price change and how much from paying the loan down.
Worked examples: defaults, a paid-off home and a thin margin
With a $450,000 value, $350,000 purchase price, $280,000 balance and an 85% limit, equity is $170,000 (37.8%), appreciation is $100,000, LTV is 62.2% and the ceiling is $102,500. A $600,000 home bought for $420,000 with no mortgage and an 80% limit has $600,000 of equity (100.0%), $180,000 of appreciation, 0.0% LTV and a ceiling of $480,000. A $300,000 home bought for $350,000 with $290,000 owed has $10,000 of equity (3.3%), LTV of 96.7%, appreciation of -$50,000 and $0 of borrowing room at 85%.
How the lender limit changes the ceiling
The table uses the default home ($450,000 value, $280,000 balance) and changes only the maximum LTV. Equity and current LTV stay at $170,000 and 62.2% in every row, because those depend on value and balance alone. Each extra percentage point of limit adds one percent of the home’s value to the ceiling, which is why the amounts step up evenly.
| Maximum LTV | Ceiling shown |
|---|---|
| 70% | $35,000 |
| 80% | $80,000 |
| 85% | $102,500 |
| 90% | $125,000 |
Edge cases the tool handles
A balance of zero is respected, and an emptied balance box becomes exactly that, so it reads as a paid-off home rather than as a default balance. If the home is worth less than its balance, equity turns negative and the borrowing ceiling floors at zero rather than showing a negative amount. The equity gain line is also floored at zero, while the separate appreciation line reports the loss, so the two can differ for a home that has fallen in value.
Reading the result
The ceiling is a calculation at the limit you provide, not an offer or approval. Lender rules differ, other loans on the property should be included in the balance, and the result depends on how reliable your value figure is. Use the tool to see how different value estimates and limits change the picture before you speak to a lender.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →