Everything a homeowner needs to understand about the value they hold in their home — how it is measured, how it grows, what it can be used for, and what it costs to use.
Home equity is the portion of your home you own outright: its current market value minus every loan balance secured against it. It is a live figure, moving with your monthly payments and with your local market.
Equity is not cash. It becomes cash only when you sell the home or borrow against it — and both routes have costs attached.
Equity = home value − total secured debt. On a $450,000 home with a $195,000 mortgage and a $15,000 HELOC balance, equity is $240,000, or roughly 53% of the home's value.
Use an appraisal or recent comparable sales for the value, and your mortgage statement's payoff balance — not the principal balance — for the debt. The calculator does this for you and shows the result as a lender would read it.
Lenders express the same relationship in reverse. Loan-to-value is your loan balance divided by the home's value; combined loan-to-value (CLTV) counts every lien. Pricing, mortgage insurance, and borrowing caps all key off these ratios.
Two engines drive it: principal amortization each month, and market appreciation over the years. Early in a 30-year mortgage the market does most of the work; later, amortization takes over as more of each payment retires principal.
Take 80% of your home's value and subtract everything you owe. On that $450,000 home with $210,000 of debt, that is $360,000 − $210,000 = $150,000. Some lenders stretch to 85% or 90% for strong credit files, and your debt-to-income ratio can cap you well before the equity does.
Uses that generally justify the risk: value-adding renovations, consolidating high-interest debt alongside a genuine change in spending, and real emergencies. Uses that generally do not: vacations, depreciating purchases, and speculation.
Two figures and about a minute. No credit check, nothing to sign.
Calculate my equityHome equity is the part of your home you actually own outright — your home's current value minus whatever you still owe on it. If your home is worth $450,000 and you owe $210,000, your equity is $240,000.
We subtract your total loan balances — your primary mortgage plus any second mortgage or HELOC — from your estimated home value. We also show your loan-to-value ratio and a rough sense of what you could borrow against the home at typical lender limits.
No — it's an estimate. Your actual equity depends on a professional appraisal, current market conditions, and lender-specific guidelines. Think of this as a starting point, not a final figure.
No. This calculator doesn't check your credit at all — it only uses the numbers you enter. Your score is only affected if you later apply for a loan that requires a credit pull.
Common paths include a home equity loan, a HELOC (a revolving line of credit against your home), or a cash-out refinance. People use these for renovations, debt consolidation, education costs, or major purchases. Each option has different costs and risks worth weighing carefully.
Yes. The calculator itself doesn't send anything anywhere — it runs entirely on this page. Information is only sent to us if you choose to request the full emailed report, and we don't sell it.
Home equity is your home's value minus what you owe. Here is exactly how it is calculated, with worked examples.
AwarenessFind out how much equity you have in your home in about a minute, using your home value and loan balances.
AwarenessLTV is the ratio lenders use to price your loan. Here is how to calculate it and what thresholds matter.
AwarenessHome equity itself does not affect your credit score — but borrowing against it can. Here is how.
AwarenessYour equity moves every month with your mortgage payment, and every quarter with your local market.
ConsiderationA side-by-side comparison of HELOCs and home equity loans: rates, draw periods, payments, and best uses.