Home Equity Calculator
Calculate your home equity, loan-to-value (LTV) ratio, and how much you may be able to borrow against your home.
Formulas Used
Home Equity:
Home Equity = Current Market Value − (Mortgage Balance + Other Liens)
Equity Percentage:
Equity % = (Home Equity ÷ Current Market Value) × 100
Loan-to-Value (LTV) Ratio:
LTV = (Total Outstanding Debt ÷ Current Market Value) × 100
Maximum Borrowable Amount (HELOC / Home Equity Loan):
Max Borrowable = (Current Market Value × Lender Max LTV%) − Total Outstanding Debt
Assumptions & References
- Home value is the current appraised or estimated market value, not the original purchase price.
- Most lenders allow a maximum combined LTV (CLTV) of 80%–85% for home equity loans or HELOCs (Consumer Financial Protection Bureau).
- An LTV at or below 80% typically eliminates Private Mortgage Insurance (PMI) requirements.
- Other liens include second mortgages, home equity lines already drawn, or any other debt secured by the property.
- The maximum borrowable amount is an estimate; actual approval depends on credit score, income, and lender policies.
- This calculator does not account for closing costs, origination fees, or appraisal costs associated with borrowing.
- References: CFPB Home Equity guidance (consumerfinance.gov), Fannie Mae LTV guidelines, Federal Reserve Regulation Z (TILA).