Home Equity Calculator
Calculate current home equity, LTV ratio, and HELOC borrowing power based on home value and mortgage balance.
By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Owning a Home
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
Knowing where you stand on home equity, your Loan-to-Value (LTV) ratio, and how much a Home Equity Line of Credit (HELOC) might open up is a practical starting point for tapping the value built into your property. With home values projected to appreciate roughly 3.5% on average in 2026, that picture is worth revisiting as part of any financial plan.
Equity is simply your current home value minus the outstanding mortgage balance. LTV comes from dividing that mortgage balance by the home value and multiplying by 100. Since lenders generally cap a HELOC around 80-85% LTV, the borrowing-power figure shown here takes 80% of your home value and subtracts what you still owe on the mortgage.
Get the home value right by leaning on recent comparable sales rather than a hopeful guess, because lowballing your market value is one of the easiest ways to throw off every number that follows. Bear in mind too that equity alone won't secure approval; lenders also weigh your credit score and income. Borrow with a repayment plan you can live with, and resist stretching the leverage to its limit.
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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