Home Equity Calculator

Calculate your current equity position, see how much you can borrow, and project your equity growth over time.

Your Home Details

🏠 Property Value
$

Current market value estimate

$
📋 Current Mortgage
$

Remaining principal balance

%
yrs
📈 Projections
%

Historical average: 3-4%

yrs
Your Home Equity
$170,000
You Own: 37.8% You Owe: 62.2%
LTV Ratio 62.2%
Appreciation Gain +$100,000

Tappable Equity

Amount you could potentially borrow against your home:

At 80% LTV
$80,000
Conservative / Best rates
At 85% LTV
$102,500
Common HELOC limit
At 90% LTV
$125,000
Higher rates apply

Equity Projection

How your equity grows over 5 years:

Today $170,000
→
In 5 Years $267,000
From Principal Paydown +$45,000
From Appreciation +$52,000

Ways to Access Your Equity

HELOC Flexible

Line of credit you draw from as needed. Variable rate, interest-only payments on what you use.

  • Only pay interest on what you borrow
  • Reusable credit line
  • Lower closing costs
Cash-Out Refinance Lump Sum

Replace your mortgage with a larger one and receive the difference as cash.

  • Fixed rate available
  • Single monthly payment
  • May lower your rate too
Home Equity Loan Second Mortgage

Fixed-rate loan for a specific amount, paid back in installments.

  • Predictable payments
  • Fixed interest rate
  • Keep existing mortgage

Understanding Home Equity

How Equity is Calculated

Home equity is simply:

Home Value − Loan Balance = Equity

Your equity increases two ways: paying down your mortgage principal and home appreciation.

LTV Ratio Explained

Loan-to-Value (LTV) ratio shows what percentage of your home is mortgaged:

(Loan Balance ÷ Home Value) × 100 = LTV%

Lower LTV = more equity = more borrowing power and better rates.

Tappable Equity

Lenders typically allow borrowing up to 80-90% of your home's value. Tappable equity is:

(Home Value × Max LTV%) − Current Balance

At 80% LTV, you keep 20% equity cushion for the best rates.

When to Access Equity

Consider tapping equity for:

  • Home improvements (may increase value)
  • Debt consolidation (if rate is lower)
  • Major expenses (education, medical)

Avoid using for discretionary spending—you're putting your home at risk.

Considering a Cash-Out Refinance?

Use our refinance calculator to see if it makes financial sense.

Open Refinance Calculator
Disclaimer: This calculator provides estimates for educational purposes only. Actual home values, loan balances, and borrowing limits depend on appraisals, lender requirements, and market conditions. Consult with a lender for personalized options.