Home Equity Calculator
Find out how much equity you've built in your home, your current loan-to-value (LTV) ratio, and how much you may be able to borrow through a HELOC or home equity loan.
E.g., 36 = 3 years of payments. This calculates your current remaining balance via amortization.
What Is Home Equity?
Home equity is the portion of your home's value that you own outright — the difference between what your home is worth and what you still owe on your mortgage.
Equity = Current Home Value − Remaining Mortgage Balance
Your equity grows in two ways:
- Loan paydown — Each mortgage payment reduces your principal balance
- Appreciation — Your home's market value increases over time
Loan-to-Value (LTV) Ratio
LTV is the inverse of equity percentage. A 70% LTV means you own 30% equity. Lenders use LTV to determine risk and eligibility.
- LTV below 80% — Qualifies for a HELOC or home equity loan; no PMI required
- LTV 80–90% — Some lenders will still approve equity products at a higher rate
- LTV above 90% — Very limited equity borrowing options
HELOC vs. Home Equity Loan
HELOC (Home Equity Line of Credit) — A revolving credit line you draw on as needed, usually at a variable rate. Best for ongoing expenses like renovations.
Home Equity Loan — A lump sum at a fixed rate, repaid over a set term. Best for a one-time large expense.
Most lenders cap equity borrowing at 80–85% combined LTV (your first mortgage balance + new loan ≤ 80–85% of home value).
Frequently Asked Questions
How do I find my current loan balance?
Check your most recent mortgage statement, your lender's online portal, or your annual escrow statement. You can also use our amortization calculator if you know your original loan terms.
Does home equity affect my taxes?
Equity itself doesn't create a tax event. Interest on a HELOC or home equity loan used to "buy, build, or substantially improve" your home may be tax-deductible — consult a tax advisor.
What can I use home equity for?
Common uses: home renovations (often adds more value), debt consolidation, college tuition, or emergency funds. Use cautiously — your home is the collateral.
