1
Estimate home value
Start with a reasonable estimate of the property's current market value.
Home Equity Calculator
Build your home equity estimate
Enter the estimated home value and debts secured by the property. You can also test what a new home equity loan or HELOC balance might do to your remaining equity.
Ready to estimate your equity?
Open the calculator and enter your home value, mortgage balance, other liens and any amount you are considering borrowing.
Home and mortgage details
Quick home-value examples
Use a realistic current estimate, not the original purchase price.
Enter 0 if none.
For planning only. Lender limits vary.
Optional.
Estimated Home Equity
$300,000
Estimated home value minus mortgage balance and other liens.
Equity Percentage
60.0%
Current LTV
40.0%
Property Debt
$200,000
Estimated borrowing room at 80% LTV
$200,000
This is a mathematical planning estimate only. Actual lender limits may be lower and can depend on credit, income, property type, appraisal, existing debt and loan program.
If you borrowed the amount entered
New property debt
$225,000
New combined LTV
45.0%
Remaining home equity
$275,000
Remaining equity percentage
55.0%
Planning Snapshot
The proposed borrowing amount remains below the selected planning LTV limit based on the values entered.
How Home Equity Works
The calculation is simple. The decision is not.
Equity is the portion of the home's estimated value that is not offset by mortgages or other debts secured by the property.
2
Add property debt
Combine the current mortgage balance with any second mortgage or other lien.
3
Subtract debt from value
The difference is your estimated dollar amount of home equity.
4
Review borrowing room
A lender may require a portion of the home's value to remain unborrowed.
What changes at different LTV limits?
These figures update with your calculator inputs. They are planning examples, not lender offers.
Available at 75% LTV
$175,000
Estimated additional property debt before reaching 75% LTV.
Available at 80% LTV
$200,000
Estimated additional property debt before reaching 80% LTV.
Available at 85% LTV
$225,000
Estimated additional property debt before reaching 85% LTV.
Before Using Home Equity
Available equity does not automatically mean you should borrow it
Protect your emergency reserve
A home project should not leave the household without enough cash for
repairs, healthcare, insurance, utilities and unexpected expenses.
Remember the home is collateral
Home equity loans and HELOCs are secured by the property. Failure to
repay can place the home at risk.
Review monthly cash flow
Equity can be substantial while monthly income is limited. The payment
still has to fit the household budget.
Include closing costs and fees
The amount received and the total cost of borrowing may differ from
the headline loan amount.
Borrow for the actual project
Having $150,000 of possible borrowing room does not mean a $20,000
renovation should become a $150,000 loan.
Consider how long you expect to stay
Major accessibility projects can be valuable, but the expected time
in the home can affect how you evaluate a large renovation.
Common Equity Routes
Home equity loan and HELOC are not the same thing
Both may use the home as collateral, but the way money is borrowed and repaid can differ substantially.
Home Equity Loan
Usually provides a lump sum with scheduled payments over a defined term. It may fit a renovation with a fairly clear total project cost.
HELOC
A home equity line of credit generally allows borrowing as needed up to a limit. Variable rates and changing payments can apply.
Personal Home Improvement Loan
Does not normally require putting the home up as collateral, although rates and loan terms may differ from home-equity borrowing.
Common Questions
Home equity questions
How do I calculate home equity?
Subtract the total amount owed on mortgages and other liens secured by the property from the home's estimated current value. For example, a $500,000 home with $200,000 of property debt has approximately $300,000 of equity before transaction costs or other adjustments.
What is loan-to-value ratio?
Loan-to-value, or LTV, compares property debt with the home's value. If a home is worth $500,000 and the total mortgage balance is $200,000, the LTV is 40%.
Can I borrow all of my home equity?
Usually not. Lenders commonly require some equity to remain in the property. The amount available to borrow depends on lender limits, appraisal, credit, income, existing debts, property type and other underwriting requirements.
What does 80% LTV mean?
An 80% LTV means the total debt secured by the property equals 80% of the home's value. On a $500,000 home, 80% LTV would equal $400,000 of total property debt.
Is a HELOC the same as a home equity loan?
No. A home equity loan generally provides a lump sum with scheduled repayment. A HELOC is usually a revolving credit line that can allow borrowing as needed up to an approved limit.
Is it a good idea to use home equity for renovations?
It depends on the household's finances, project, borrowing cost and ability to repay. Home equity borrowing uses the property as collateral, so the decision should involve more than simply calculating how much equity is available.
Does this calculator tell me how much a lender will approve?
No. This calculator provides mathematical planning estimates only. A lender may use an appraisal, credit history, income, debt, property type and other factors when determining eligibility and borrowing limits.
Last reviewed: September 2026. This calculator is for educational planning only. It does not provide an appraisal, lending decision, credit approval, loan offer, tax advice or individualized financial advice.
60AndOver.net Editorial Team. Home equity borrowing generally places the home behind the debt as collateral. Review loan terms, fees, repayment obligations and the effect on your household finances before borrowing.