Home Equity Calculator
Find your home equity and how much you could borrow against it — based on your home value, mortgage balance and the lender's maximum loan-to-value.
How it works
Equity = home value − mortgage balance · Max debt = value × max LTV% · Available to borrow = max debt − current balance (floored at 0)
Equity is simply your home's value minus what you still owe. Lenders, though, will not let you borrow against every dollar of it: they cap total mortgage debt at a loan-to-value limit, commonly 80–90%. Your borrowing room is that capped amount minus your existing balance, so a higher home value or a lower balance both increase what you can tap.
Worked example
A $400,000 home with a $250,000 mortgage has $150,000 of equity (37.5% of value). At an 85% LTV limit the lender allows total debt of $340,000, so subtracting the $250,000 you owe leaves about $90,000 available to borrow.
Frequently asked questions
What is the difference between equity and borrowable equity?
Total equity is value minus balance — the full stake you own. Borrowable equity is smaller because lenders cap combined loan-to-value, usually at 80–90%, leaving a protective cushion they will not lend against.
What is a HELOC versus a home-equity loan?
A home-equity loan gives a lump sum at a fixed rate; a HELOC is a revolving line you draw from as needed, usually at a variable rate. Both are secured by your home and share the same loan-to-value limits.
Does borrowing against equity put my home at risk?
Yes. A home-equity loan or HELOC is secured by the property, so defaulting can lead to foreclosure just like the first mortgage. Borrow only what you can comfortably repay.
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Educational estimate only — not financial, tax or lending advice. Confirm exact figures with your lender.