Home Equity Calculator
Calculate home equity, LTV ratio, and available HELOC borrowing amount
Know what your home is worth to you
Home equity is real wealth — find out how much you have built and how much you can access.
Equity amount
See your exact equity in dollars and as a percentage of your home value.
LTV ratio
Know your loan-to-value ratio — the key number lenders check for HELOC approval.
Borrowing power
Calculate your maximum HELOC at 80%, 85%, or 90% LTV based on your lender.
Equity breakdown
Visual bar shows the split between your equity and outstanding debt at a glance.
Refi readiness
See if you have 20% equity to drop PMI or access better rate tiers on a refinance.
100% private
All calculations happen in your browser. Your financial data stays on your device.
When to use it
Home improvement
Check your HELOC eligibility before planning renovations or repairs.
Debt consolidation
See how much you could borrow to pay off high-rate credit card debt.
Education funding
Explore using equity for college costs alongside other options.
Net worth tracking
Understand the equity component of your overall financial picture.
Frequently Asked Questions
How do I calculate home equity?
Home equity is simply the current market value of your home minus the total of all outstanding loans secured against it (your mortgage balance plus any existing HELOC or home equity loan). If your home is worth $400,000 and your mortgage balance is $280,000, your equity is $120,000 — or 30% of the home value.
How much can I borrow with a HELOC?
Most lenders allow you to borrow up to 80–85% of your home's current value, minus what you still owe on your mortgage. If your home is worth $400,000, 80% is $320,000. If your mortgage balance is $280,000, you can borrow up to $40,000. Some lenders go to 90% for well-qualified borrowers, which would allow up to $80,000 in this example.
What is loan-to-value (LTV) ratio?
LTV is the total of all loans on your home divided by its current value, expressed as a percentage. A $280,000 mortgage on a $400,000 home is a 70% LTV. Lenders use LTV to assess risk: lower LTV means more equity and lower risk. Below 80% LTV is typically required to avoid PMI on a first mortgage and to qualify for most HELOC products.
What is the difference between a HELOC and a home equity loan?
A HELOC (home equity line of credit) is a revolving credit line — you draw what you need when you need it, and interest is charged only on what you borrow. A home equity loan gives you a lump sum upfront at a fixed rate and term, like a second mortgage. HELOCs are more flexible; home equity loans give payment certainty.
Can I use home equity to pay off credit card debt?
Yes, and many homeowners do — called a debt consolidation — because mortgage rates are typically far lower than credit card rates. The risk is that you are converting unsecured debt to secured debt: if you can't pay back the HELOC, you can lose your home. This makes it critical to address the underlying spending habits, or you risk accumulating credit card debt again while also owing on the HELOC.
Understanding Home Equity
Home equity is the portion of your home's value that you actually own — the difference between what it is worth on the market today and what you still owe on your mortgage. It is one of the most significant stores of wealth for most households, growing both as you pay down your mortgage and as your home appreciates in value.
Two ways equity builds
Equity grows from two sources: principal paydown and price appreciation. Every mortgage payment includes a principal component that directly increases your equity. Separately, as property values rise in your area, your equity rises too — without any action on your part. In fast-appreciating markets, price appreciation can build equity faster than principal paydown. In flat or declining markets, equity grows slowly or can even fall if values drop far enough.
The 20% equity threshold
Twenty percent equity is a critical milestone for homeowners. Below it, most conventional lenders require private mortgage insurance (PMI) — an extra monthly cost that protects the lender, not you. At 20% equity, PMI can be removed, lowering your payment. You also gain access to better HELOC rates and terms, and you are positioned well for a refinance that avoids adding PMI back.
Using equity wisely
Home equity is real wealth, but it is illiquid — locked in your home until you sell or borrow against it. When accessed wisely (for high-ROI home improvements, debt consolidation at much lower rates, or education), it can work effectively. The key risk of borrowing against equity is that your home becomes collateral: failing to repay a HELOC can cost you the home, whereas failing to pay unsecured credit card debt cannot. Treat equity borrowing with the same seriousness as any secured loan.