Home Equity Calculator
Enter your home value, mortgage balance and a maximum loan-to-value limit. A $400,000 home with a $250,000 mortgage has $150,000.00 of equity, and at an 80 percent limit you could borrow about $70,000.00.
How the home equity calculator works
Home equity is the part of your home you own: its value minus what you owe. Lenders usually limit total borrowing to a percentage of the home value, called the combined loan-to-value (CLTV). The calculator shows your equity, your current LTV and how much more you could borrow under the limit you enter.
The formulas
Example: A $400,000 home with a $250,000 mortgage has equity of $150,000.00, which is 37.5% of the value, and a current LTV of 62.5%. With an 80 percent limit the most you could borrow is $70,000.00.
Notes and limits
- Home value should be a realistic market value or appraisal.
- Lenders also look at credit, income and debt. The limit varies by lender.
- Borrowing against your home puts it at risk if you cannot repay.
Figures are estimates for planning and are not financial advice. Check your own agreement or statement for exact terms.
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Frequently asked questions
How do I calculate home equity?
Subtract what you owe on the mortgage from the home value. The default is $150,000.00.
What is LTV?
Loan-to-value: your loan balance divided by the home value.
How much can I borrow against my home?
Many lenders cap combined loans around 80 to 85 percent of value, but limits vary. Use the lender’s number.
Does equity equal cash I can keep?
No. Selling costs and taxes reduce what you walk away with.
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