Estimate your current home equity, loan-to-value ratio, equity percentage, and potential additional borrowing capacity using your home's value and outstanding mortgage debt.
Add your estimated home value and outstanding property-secured debt.
A Home Equity Calculator estimates the portion of your home's current market value that remains after subtracting mortgages and other debts secured by the property.
It can also calculate your current loan-to-value ratio, equity percentage, and estimated additional borrowing capacity based on the maximum LTV percentage you choose.
Your home equity can change over time as your mortgage balance decreases or your property's market value changes.
Enter your property's estimated current market value.
Enter your mortgage and any additional debt secured by your property.
See equity, LTV, equity percentage, and estimated borrowing capacity.
Property-secured debt may include your primary mortgage, second mortgage, home equity loan, existing HELOC, or another debt secured by the property.
LTV shows the percentage of your property's estimated value that is currently represented by secured debt.
Suppose your home is currently estimated to be worth $450,000, while the remaining mortgage balance is $280,000.
If you select an 80% maximum LTV, the estimated maximum total secured debt would be $360,000. After subtracting the existing $280,000 mortgage, the calculator would show approximately $80,000 in potential additional borrowing capacity.
Paying down your mortgage principal can gradually increase your equity if your property's market value remains stable.
If your home's market value increases, your estimated equity may increase. A decline in market value can reduce your equity.
Additional borrowing secured against your home increases total secured debt and can reduce the amount of equity available to you.
Certain improvements may affect your property's market value, although renovation costs do not necessarily result in an equal increase in property value.
Total home equity and borrowable home equity are not the same thing.
For example, you may have $170,000 of estimated equity in your property, but that does not necessarily mean you can borrow the full $170,000.
A lender may limit how much total property-secured debt can exist relative to your home's value. Income, credit, existing obligations, property valuation, and lender requirements can also affect borrowing eligibility.