FINANCIAL · HOME EQUITY
Home Equity Calculator
Calculate your current home equity, loan-to-value (LTV) ratio, and how much equity you can access through a HELOC or cash-out refinance at an 80% LTV threshold.
About This Calculator
Find out how much equity you have in your home, your current loan-to-value (LTV) ratio, and how much equity you can tap through a HELOC or cash-out refinance — all in seconds.
How It Works
Enter your home's current market value and remaining mortgage balance. The calculator subtracts your balance from your home value to find your equity, divides the balance by the value to get your LTV ratio, and then shows how much equity you can access while keeping your LTV at or below the threshold you set (default 80%, the standard for most lenders).
The Formula
Equity = Market Value − Remaining Balance
- Market Value
- Current estimated market value of the home
- Remaining Balance
- Outstanding mortgage principal owed
- LTV
- Loan-to-value ratio = Remaining Balance ÷ Market Value × 100%
Frequently Asked Questions
- What is home equity?
- Home equity is the portion of your home's value that you own outright — it's the current market value minus the amount you still owe on your mortgage. As your home appreciates and your mortgage balance decreases, your equity grows.
- What is a loan-to-value (LTV) ratio?
- LTV measures how much of your home's value is financed with a mortgage. A lower LTV means more equity. Most lenders require your LTV to be at or below 80% to qualify for a HELOC, cash-out refinance, or avoid PMI.
- How much equity can I access?
- Most lenders let you borrow against your equity up to a combined LTV of 80%–90%. At 80% LTV, you can access equity equal to (market value × 80%) minus your current balance. The remaining equity acts as a safety cushion.
- What is an underwater home?
- A home is underwater when the mortgage balance exceeds the market value. This means you have negative equity — common after a drop in home prices. Refinancing is difficult when underwater.