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.

Formula shown below · Tested against worked examplesHow we verify

Home value

Mortgage balance owed

Max combined loan-to-value

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

Your equity$200,00040%

Owed$300,00060%

Compare scenariosTry three values of one input

Vary

Home Equity Calculator results for three values of Home value
Home value
Your home equity	$150,000	$200,000+$50,000	$250,000+$100,000
Estimated borrowing limit	$82,500	$125,000+$42,500	$167,500+$85,000
Equity as % of value	33.33%	40%+6.67%	45.45%+12.12%

Every other input stays at the value you set above — currently $500,000 for home value. Differences are measured against the first column.

Saved scenariosSave this calculation

Name this scenario

Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.

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.

Formula

Equity          = Value − Balance
Equity %        = Equity ÷ Value
Borrowing limit = max(0, Value × LTV − Balance)

Value: Current home value
Balance: Remaining mortgage balance
LTV: Lender's maximum combined loan-to-value, as a decimal

Borrowable equity is well below total equity, because the lender's LTV cap applies to the whole debt against the property rather than to the new loan alone.

What this assumes

Lenders cap combined loan-to-value, commonly around 80–85%, so your borrowable equity is well below your total equity.
The home's value is the figure you enter; a lender uses an appraisal, which may differ.
Any existing mortgage balance is subtracted first — you can only borrow against what is genuinely yours.

What changes this number

Current home value: Sets the ceiling, and it is the number a lender will verify rather than accept.
Remaining mortgage balance: Every payment made increases borrowable equity slightly; early payments barely move it.
The lender's LTV limit: Varies by product and credit profile, and moves the answer more than small changes in value.

A worked example

Take the $500k home, $300k owed, 85% scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Home value: $500,000
Mortgage balance owed: $300,000
Max combined loan-to-value: 85% (common)

What it returns

Your home equity: $200,000
Estimated borrowing limit: $125,000
Equity as % of value: 40%
Still owed: $300,000

Sources

This calculator uses no external data — the result follows entirely from the formula above and the values you enter, so there is nothing to cite beyond the arithmetic.

Calculator last reviewed August 9, 2026. How we verify

Try an example

$500k home, $300k owed, 85%Nearly paid off Little equity yet

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.

Mortgage Calculator

Estimate your monthly mortgage payment with taxes, insurance, PMI and HOA — plus total interest and a full amortization breakdown. Free, fast, no signup.

Mortgage Refinance Calculator

Should you refinance? Compare payments, find your break-even month on closing costs, and see the honest lifetime cost — including the term-reset trap.

Amortization Calculator

Build a complete amortization schedule for any loan: payment, year-by-year principal vs interest split, and the effect of extra payments.

Down Payment Calculator

See the cash you need upfront to buy a home — down payment plus closing costs — and how many months of saving it takes to get there.

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.