Home Equity Calculator
Calculate your home equity and see how much you can borrow with a HELOC or home equity loan.
Your Home Details
Your Home Equity
37.8% of your home value
What Can You Use Home Equity For?
- ✓ Home renovations and repairs
- ✓ Debt consolidation (credit cards, student loans)
- ✓ Education expenses
- ✓ Emergency fund or major purchases
- ✓ Investment property down payment
How to Calculate Your Home Equity
- Step 1: Enter your current home value — use a recent appraisal, Zestimate, or comparable sale estimate for the most accurate result.
- Step 2: Enter your remaining mortgage balance — this is the total principal you still owe on your mortgage.
- Step 3: Enter a HELOC interest rate — use the current average rate (typically 8-10%) or a rate quote from your lender for a more precise estimate.
- Step 4: Review your equity and borrowing power — the calculator shows your total equity, equity percentage, and how much you can borrow at 85% CLTV.
- Step 5: Check your estimated monthly interest — this shows what you would pay in interest on the borrowable amount, helping you decide if a HELOC fits your budget.
What Is Home Equity?
Home equity is the portion of your home that you truly own — the difference between your home's current market value and your remaining mortgage balance. As you make mortgage payments and your property appreciates, your equity grows.
How Does the Home Equity Calculator Work?
Our calculator takes your current home value and mortgage balance to compute your available equity. It then calculates how much you can borrow with an 85% combined loan-to-value (CLTV) ratio and estimates your monthly HELOC interest payments.
Why Use Our Home Equity Calculator?
- Quickly determine your available equity and borrowing power
- Compare HELOC, home equity loan, and cash-out refinance options
- Plan home improvements, debt consolidation, or major expenses
Understanding Home Equity
What Is Home Equity?
Home equity is the difference between your home's current market value and what you owe on your mortgage. As you pay down your mortgage and your home value increases, your equity grows.
How to Calculate Equity
Home Equity = Current Home Value − Mortgage Balance. Most lenders let you borrow up to 80-85% of your home's value minus what you owe.
Accessing Your Equity
You can access equity through: Home Equity Loan (fixed rate), HELOC (variable rate), Cash-Out Refinance, or Reverse Mortgage (62+).
Home Equity Loan vs HELOC vs Cash-Out Refinance
| Feature | Home Equity Loan | HELOC | Cash-Out Refinance |
|---|---|---|---|
| Rate Type | Fixed | Variable | Fixed |
| Payout | Lump sum | Line of credit | Lump sum |
| Best For | One-time expense | Ongoing needs | Lower rate + cash |
| Typical Rate | 7-9% | 8-10% | 6-7% |
⚠️ Important Warning
Your home is collateral for home equity loans and HELOCs. If you fail to make payments, you could lose your home. Always borrow responsibly and make sure you can afford the payments.