Home Equity Calculator

Calculate your available home equity and see how much you could potentially borrow against it. Track your equity growth from home appreciation and mortgage principal payments.

Home Equity = Current Home Value - Mortgage Balance. Equity % = (Equity / Home Value) * 100. LTV = (Mortgage Balance / Home Value) * 100. Max Borrow = (Home Value * LTV Limit) - Mortgage Balance.
Example: $400,000 home with $280,000 mortgage. Equity = $400,000 - $280,000 = $120,000 (30%). At 80% LTV, max borrow = ($400,000 * 0.80) - $280,000 = $40,000. At 85% LTV = $60,000.

What is home equity?

Home equity is the portion of your home that you truly own - the difference between your home's current market value and what you still owe on your mortgage. For example, if your home is worth $300,000 and you owe $200,000, you have $100,000 in equity (33.3%).

How do I build home equity?

You build equity in three ways: 1) Making mortgage payments (especially principal), 2) Your home appreciating in value over time, and 3) Making home improvements that increase property value. Extra principal payments accelerate equity building.

How much equity do I need to refinance?

Most lenders require at least 20% equity to refinance without PMI. Some programs allow as low as 5% equity, but you'll pay higher rates and fees. The more equity you have, the better your refinancing terms typically are.

How much equity do I need to get a home equity loan or HELOC?

Lenders typically require 15-20% equity remaining after the loan. Most allow borrowing up to 80-85% combined loan-to-value (CLTV). So with $300,000 home and $200,000 mortgage, at 80% CLTV you could borrow $40,000, leaving $60,000 equity (20%).

Does home equity affect my net worth?

Yes, home equity is a major component of net worth for most homeowners. As you pay down your mortgage and/or your home appreciates, your equity increases, directly increasing your net worth. However, equity is illiquid - you must sell or borrow against it to access the cash.

Can home equity go negative?

Yes, if your home value drops below your mortgage balance, you're "underwater" or have negative equity. This happened to many homeowners during the 2008 housing crisis. You can still make payments and wait for the market to recover, but you can't sell without paying the difference.