Home Equity Calculator
Your ownership stake, and what you could borrow against it.
Your home equity:
Equity as % of home:
Potential borrowing power:
How to use this calculator
Enter your home value, mortgage balance and the max LTV lenders allow, then press Calculate. Equity, equity percentage and borrowing power are shown.
What the result means
Equity is what you own of the home. Borrowing power is what lenders might advance against it — useful for home equity loans or HELOCs, but it's debt, not free money.
How home equity is calculated
Equity is simply your home's value minus your mortgage balance. Lenders let you borrow against part of that equity through a home equity loan or line of credit (HELOC), usually up to 80-85% of the value once all loans are combined - this tool shows that ceiling.
Worked example
A home worth $400,000 with a $220,000 mortgage has $180,000 of equity. At an 80% loan-to-value limit you can owe up to $320,000 total, so your available borrowing room is $100,000. This calculator shows both your equity and that available amount.
What affects the number
- Value changes move both equity and available credit.
- The lender's LTV limit (often 80-85%) decides how much of your equity you can actually borrow.
- Paydown of principal raises equity every month.
Frequently asked questions
What's a good LTV for borrowing?
Lenders commonly allow up to 80% combined loan-to-value for home equity products.
Is borrowing against equity risky?
It's secured debt — if you can't repay, you could lose the home. Borrow only for purposes with a clear return.
Is borrowing against home equity risky?
Your home is the collateral - if you cannot repay, you can lose it. Use it for value-adding or necessary expenses, not consumption.