Home Equity Calculator
Calculate current home equity, LTV ratio, and HELOC borrowing power based on home value and mortgage balance.
Current Equity
$160,000.00
LTV Ratio
64.4%
Equity %
35.6%
Equity Breakdown
| Current Home Value | $450,000.00 |
| Current Loan Balance | $290,000.00 |
| Current Equity | $160,000.00 |
| Down Payment (est.) | $90,000.00 |
| Principal Paid Down | $70,000.00 |
| Appreciation (est.) | $0.00 |
| Annual Appreciation Rate | 0.0% |
HELOC Borrowing Power
| At 80% LTV Limit | $70,000.00 |
| At 90% LTV Limit | $115,000.00 |
| Current LTV | 64.4% |
Use the Home Equity Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Determine your current home equity, Loan-to-Value (LTV) ratio, and potential Home Equity Line of Credit (HELOC) borrowing power. With projected home value appreciation averaging 3.5% in 2026, understanding your equity is crucial for financial planning. This tool helps you unlock the value of your home.
Your home equity is calculated by subtracting your outstanding mortgage balance from your current home value. The LTV ratio is determined by dividing your mortgage balance by your home value, then multiplying by 100. HELOC borrowing power is typically capped at 80-85% LTV, so we calculate 80% of your home value minus your current mortgage balance.
A common mistake is underestimating your home's current market value; always use recent comparable sales. Also, remember that HELOC approval depends on credit score and income, not just equity. Don't over-leverage your home; aim for a comfortable repayment plan.
Example: Unlocking Equity for a Renovation
- 1 Input your current estimated home value (e.g., $450,000) and your outstanding mortgage balance (e.g., $200,000).
- 2 The calculator will subtract your mortgage balance from your home value to show your equity ($250,000). It then divides your mortgage balance by your home value to show your LTV ratio (44.4%). For HELOC borrowing power, it calculates 80% of your home value ($360,000) and subtracts your mortgage balance ($200,000) to show a potential HELOC of $160,000.
- 3 Your home equity is $250,000, your LTV is 44.4%, and your potential HELOC borrowing power is $160,000 (assuming an 80% LTV cap).
- 4 This means you have substantial equity in your home. With an LTV well below the typical 80% threshold, you are in a strong position to access a HELOC for a home renovation, debt consolidation, or other financial needs. Always consult a lender for specific HELOC terms and eligibility.
Source: CFPB — Owning a Home · Last updated: April 2026
Frequently Asked Questions
How do I calculate my home equity?
How much home equity can I borrow against?
Does home equity count as taxable income?
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