WiseCalcs

Home equity calculator

Enter your home's value, your remaining mortgage balance, and the lender's maximum loan-to-value. The calculator shows your equity, the equity as a percentage of value, and how much you could still borrow as you type.

Use it to find your home equity (value minus mortgage balance), what share of the home you own, and the amount you could still borrow at a given max loan-to-value.

USD
USD
%

Home equity

$150,000.00

Mortgage owed Equity owned
Equity (% of value)
37.5%
Available to borrow
$70,000.00

The result updates as you type. The bar splits the home value into the part you still owe on the mortgage and the part you own outright as equity.

How does it work?

The amount you can still borrow is the home value times the max loan-to-value, minus the mortgage balance: V·(L/100) − B. With a max LTV of 80%, that is 400,000·0.8 − 250,000 = 70,000. You supply the home value as an estimate; the calculator does not look it up.

Home equity formula

E=V−BE = V - B
E
Home equity (your stake in the home).
V
Home value (current market value).
B
Mortgage balance (amount still owed).

A home worth 400,000 with a 250,000 mortgage has 150,000 of equity, which is 37.5% of the value.

Method & sources

You supply the home value as an estimate; the calculator does not look up or appraise it. The mortgage balance is the amount still owed on all loans secured against the home. The maximum loan-to-value varies by lender and product; the default of 80% is only a common example.

Sources

Where this method comes from — use these references to understand the formula, assumptions, and limits.

How we calculate

  • You supply the home value as an estimate; the calculator does not look up or appraise it.
  • The mortgage balance is the amount still owed on all loans secured against the home.
  • The maximum loan-to-value varies by lender and product; the default of 80% is only a common example.
  • The amount available to borrow is a before-approval estimate and excludes lender fees, valuation costs, and credit checks.
  • The currency shown follows the site language; the equity math is the same in every market.

Rounding

Currency amounts are rounded to two decimals and the equity percentage to one decimal for display. The calculation uses full precision.

What this calculator does

Home equity is the part of your home you own outright: its current value minus the amount you still owe on the mortgage. This calculator finds that figure, shows it as a percentage of the home value, and estimates how much you could still borrow against the home at a lender's maximum loan-to-value.

How to use it

  1. Enter the home value (your estimate of the current market value).
  2. Enter the mortgage balance (the amount still owed).
  3. Enter the maximum loan-to-value the lender allows, as a percentage.
  4. Read the equity, the equity percentage, and the available-to-borrow amount below.

A worked example

A home worth 400,000 with a 250,000 mortgage has 150,000 of equity, which is 37.5% of the value. At a maximum loan-to-value of 80%, the lender would lend up to 320,000 against the home, so 70,000 is still available to borrow after subtracting the 250,000 already owed.

What loan-to-value means

Loan-to-value (LTV) is the share of the home's value a lender is willing to lend against. A max LTV of 80% means total borrowing can reach 80% of the value. The available-to-borrow figure is that limit minus what you already owe; if you already owe more than the limit, it shows zero.

Negative equity

If the mortgage balance is larger than the home value, your equity is negative — you owe more than the home is worth. The equity figure shows the negative amount, and there is nothing available to borrow.

When it's useful

Planning a remortgage or home-equity loan, checking how much of your home you own, or seeing whether rising or falling prices have changed your borrowing room.

FAQ

How is home equity calculated?
It is the home value minus the mortgage balance. If your home is worth 400,000 and you owe 250,000, your equity is 150,000.
What does the equity percentage mean?
It is your equity divided by the home value, shown as a percentage. It tells you what share of the home you own outright.
How is the available-to-borrow amount worked out?
It is the home value times the maximum loan-to-value, minus the mortgage balance. If that comes out negative — you already owe more than the limit — it is shown as zero.
Does this guarantee a lender will lend that much?
No. It is a before-approval estimate. Lenders also assess income, credit, and affordability, and charge fees and valuation costs that are not included here.
What if I have negative equity?
If you owe more than the home is worth, the equity figure is negative and the available-to-borrow amount is zero.
Which currency does it use?
The currency follows the site language. The equity math is identical in every market.

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<iframe src="https://wisecalcs.com/embed/en/home-equity-calculator" width="100%" height="520" style="border:0" loading="lazy"></iframe> <p>Calculator from <a href="https://wisecalcs.com/en/loans-mortgages/home-equity-calculator">WiseCalcs</a></p>