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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.