Introduction
Home equity is the part of your home that you truly own. It is the difference between what your home is worth and what you still owe on your mortgage. This Home Equity Calculator helps you find out how much equity you have and how much you may be able to borrow against it.
Lenders look at a number called your combined loan-to-value ratio (CLTV) to decide if you qualify for a home equity loan or a HELOC. This tool calculates that ratio for you. It also shows your estimated interest rate, monthly payment, and total interest based on your credit score, loan term, and property type. You can also use our LTV Calculator to explore loan-to-value ratios in more detail.
Enter your home value, mortgage balance, and the amount you want to borrow. The calculator will tell you if you are likely eligible, how much you could borrow, and what your payments might look like. If you do not qualify, it will show you clear steps to get there, such as how much mortgage to pay down first.
How to Use Our Home Equity Calculator
Enter details about your home, your loan needs, and your credit profile. The calculator will show how much equity you have, how much you can borrow, your estimated rate, and your monthly payment.
Estimated Home Value: Type in what your home is worth today. Use a recent appraisal or a best guess based on similar homes sold near you.
Current Mortgage Balance: Enter the amount you still owe on your primary mortgage. You can find this on your latest mortgage statement. If you want to see how extra payments could reduce this balance faster, try our Mortgage Payoff Calculator.
Additional Liens / Other HELOCs: If you have a second mortgage, an existing HELOC, or any other debt tied to your home, enter the total here. Leave it at $0 if you have none. Our HELOC Calculator can help you analyze an existing or new line of credit in more detail.
ZIP Code: Type in your 5-digit ZIP code. Rates and lender options can change based on where you live.
Property Occupancy Type: Pick how you use the property. Choose primary residence, vacation home, or investment property. This affects your estimated rate. If you own an investment property, our Rental Yield Calculator can help you evaluate its return.
Loan Type: Choose between a home equity loan or a HELOC. A home equity loan gives you one lump sum at a fixed rate. A HELOC is a credit line you draw from as needed. For a deeper look at fixed-rate options, see our Home Equity Loan Calculator.
Requested Loan / Line Amount: Enter the amount of money you want to borrow. If this is more than you qualify for, the calculator will adjust it down for you.
Loan Term: Pick how many years you want to repay the loan. Shorter terms mean higher monthly payments but less interest paid overall. Our Amortization Calculator can show you a full payment schedule for any term you choose.
Payment Type (HELOC only): This option appears when you select HELOC. Choose interest-only to pay just the interest each month, or full repayment to pay down the balance over time. You can explore interest-only scenarios further with our Interest Only Calculator.
Maximum LTV Threshold: Pick a lender scenario of 80%, 85%, or 90%. This sets the maximum combined loan-to-value ratio allowed. Most lenders cap at 80%, but some go higher.
Credit Score Range: Select the range that matches your credit score. A higher score will give you a lower estimated rate. To understand how rates affect total borrowing costs, try our APR Calculator.
What Is Home Equity?
Home equity is the part of your home that you truly own. It is the difference between what your home is worth and what you still owe on your mortgage. For example, if your home is worth $300,000 and you owe $200,000, your home equity is $100,000. Tracking your equity alongside all your assets and liabilities can give you a complete financial picture — our Net Worth Calculator can help with that.
How Home Equity Borrowing Works
Lenders let you borrow against your home equity using a home equity loan or a home equity line of credit (HELOC). A home equity loan gives you a lump sum of money at a fixed interest rate. You pay it back in equal monthly payments over a set number of years. A HELOC works more like a credit card. You get a credit limit and can borrow what you need, when you need it, usually at a variable rate. If neither option works for your situation, a cash-out refinance or a personal loan may be worth considering as alternatives.
What Is Loan-to-Value (LTV)?
Loan-to-value, or LTV, is a ratio lenders use to measure risk. It compares how much you owe on your home to how much your home is worth. A lower LTV means you own more of your home, which makes lenders more willing to approve you. Most lenders want your combined LTV (CLTV) — which includes your mortgage, any existing liens, and the new loan — to stay at or below 80%. Some lenders allow up to 85% or 90%, but the interest rate is usually higher. If your LTV is above 80% on your primary mortgage, you may also be paying private mortgage insurance — use our PMI Calculator to see how much that costs. You can also use our LTV Calculator to run quick loan-to-value checks across different scenarios.
What This Calculator Does
This home equity calculator estimates how much equity you have, how much you could borrow, and what your monthly payment might be. It factors in your home value, mortgage balance, credit score, loan type, and loan term to give you a clear picture. The results include your LTV, CLTV, estimated interest rate, and a full breakdown of costs across different repayment terms. All figures are estimates. Your actual rate, loan amount, and eligibility depend on the lender you choose. For broader mortgage planning, you may also find our Mortgage Calculator and Home Affordability Calculator helpful. If you are weighing whether to rent or buy, our Rent vs Buy Calculator can guide that decision. And to understand how your total monthly housing cost breaks down, check out our PITI Calculator.