Home Equity Calculator

Calculate your home equity, loan-to-value ratio, and available equity for a HELOC or cash-out refinance. Enter your home value and remaining mortgage balance.

Home equity is the portion of your home you truly "own" — your home's current market value minus what you still owe on your mortgage. It's a major component of household net worth and can be tapped through HELOCs or cash-out refinancing.

Loan-to-value ratio (LTV)

LTV = (mortgage balance ÷ home value) × 100. Most lenders require LTV below 80% to avoid PMI, and require LTV below 80–85% for home equity products. The lower your LTV, the more equity you have access to.

Ways to use home equity

  • HELOC: revolving credit line — draw as needed, interest-only during draw period
  • Home equity loan: lump sum at fixed rate — predictable monthly payments
  • Cash-out refinance: replace your mortgage with a larger one, pocket the difference

Using equity wisely

  • Home improvements that add value (ROI often 60–80%)
  • Consolidating high-interest debt (mortgage rates often beat credit card rates)
  • Emergency fund backup
  • Avoid using for consumption, vacations, or depreciating assets

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