Home Equity Calculator

Calculate your available home equity and potential loan options based on your home's value and mortgage balance.

Home Information

Current Home Value

Original Purchase Price

Year Purchased

Annual Appreciation Rate

Mortgage Information

Primary Mortgage Balance

Second Mortgage/HELOC Balance (if any)

Loan Restrictions

HELOC Max LTV

Cash-Out Refi Max LTV

Home Equity Loan Max LTV

Home Equity Analysis

Results update automatically as you change your inputs

Home Equity Basics

What is Home Equity?

Home equity is the portion of your home that you truly "own." It's calculated as the current market value of your home minus the outstanding balance of all loans secured by your home.

Building Equity

You build equity in two ways: paying down your mortgage principal and property value appreciation. Making extra mortgage payments can accelerate your equity growth.

Ways to Access Equity

HELOC: Revolving line of credit with variable rates
Home Equity Loan: Fixed-rate, lump-sum second mortgage
Cash-Out Refinance: Replace your current mortgage with a larger one and receive the difference in cash

LTV Ratio Importance

Your loan-to-value (LTV) ratio affects your ability to access equity and the terms you'll receive. Most lenders limit combined LTV to 80-90% for equity borrowing.

Risks to Consider

Borrowing against your home puts it at risk of foreclosure if you can't make payments. Housing market downturns can reduce or eliminate equity. Consider these risks carefully.

How to Use This Calculator

This calculator helps you make informed financial decisions by providing accurate estimates based on the information you provide. Follow these steps:

Enter Your Details

Fill in all required fields with your financial information.

Adjust Parameters

Use sliders and toggles to customize scenarios and assumptions.

View Results

Get instant calculations that update as you change inputs.

Compare Options

Try different scenarios to find the best financial solution.