Mortgages
Home Equity Calculator
Home equity is the share of your home you actually own — its value minus what you owe. Lenders let you borrow against part of it, up to a combined loan-to-value cap. Enter your home's value, your balance, and the cap to see your equity and borrowing power.
Your home equity
$200,000
What you own outright: value minus mortgage balance.
- Estimated borrowing limit
- $125,000
- Equity as % of value
- 40%
- Still owed
- $300,000
Most you could tap via a HELOC or home equity loan.
How this calculator works
Equity = home value − mortgage balance. Borrowing limit = (home value × max combined LTV) − mortgage balance, floored at zero. Equity percent is equity ÷ home value.
The borrowing limit is an estimate of what LTV rules allow — actual approval also depends on your credit, income, and the lender's specific product. Get a current appraisal or market estimate for the value; a stale figure skews every number here.
Try an example
Frequently asked questions
How much home equity can I borrow?
Lenders typically cap your combined loans at 80–90% of the home's value. Multiply the value by that limit and subtract your current mortgage balance to get your borrowing room. On a $500,000 home with $300,000 owed at an 85% cap: $425,000 − $300,000 = $125,000 available.
What's the difference between a HELOC and a home equity loan?
A home equity loan is a lump sum at a fixed rate, repaid over a set term — good for a one-time cost. A HELOC is a revolving line of credit you draw from as needed, usually at a variable rate — good for ongoing or uncertain expenses. Both are secured by your home.
How is home equity calculated?
Equity = your home's current market value minus everything you owe against it (your mortgage plus any second liens). As you pay down the mortgage and as the home appreciates, your equity grows. It's the portion of the property's value that's truly yours.
Is borrowing against home equity a good idea?
It can be, for value-adding uses like renovations or consolidating higher-interest debt at a lower rate — but the loan is secured by your home, so defaulting risks foreclosure. Avoid tapping equity for everyday spending or depreciating purchases, and leave a cushion rather than borrowing to the maximum.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.