Calculate your home equity, loan-to-value ratio, and potential borrowing power for HELOCs or home equity loans
Add a rate and term to estimate the monthly payment on a fixed home equity loan.
Estimates for comparison only. Borrowing limits, rates, and combined-LTV caps vary by lender and depend on your credit, income, and a current appraisal. Not a lending offer.
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Your home equity represents real wealth you've built over time. Our calculator helps you understand exactly how much equity you have, what you could potentially borrow against it, and what a HELOC or home equity loan payment might look like. Make informed decisions about tapping your home's value.
Home equity is the difference between your home's current market value and what you owe on your mortgage. If your home is worth $400,000 and you owe $250,000, you have $150,000 in equity. Lenders typically allow borrowing up to 80-85% of your home's value (combined loan-to-value), minus your existing mortgage.
Home Equity Formula
Fund kitchen remodels, additions, or major repairs using your equity.
Replace high-interest credit card debt with lower home equity rates.
Establish a HELOC as a financial safety net for unexpected expenses.
Know your true net worth
Understand borrowing capacity
Plan home improvements
Consolidate high-interest debt
Fund major expenses wisely
Your home equity is your home's current market value minus everything you owe on it. If your home is worth $450,000 and your mortgage balance is $280,000, you have $170,000 in equity — about 38% of the home's value. Equity grows as you pay down the mortgage and as the home appreciates.
Most lenders let your combined loan-to-value (CLTV) reach 80%–85%, occasionally 90%. Multiply your home value by that cap, then subtract your mortgage balance. On a $450,000 home with $280,000 owed at an 80% cap: $450,000 × 0.80 − $280,000 = $80,000 available. You keep the rest as a required equity cushion.
A HELOC is a revolving credit line with variable rates—draw what you need, when you need it. A home equity loan is a lump sum with fixed payments. HELOCs offer flexibility; home equity loans offer predictability.
Lower is better. Under 80% LTV avoids PMI concerns and provides a safety buffer. Most lenders won't exceed 85% combined LTV for equity products. Some allow up to 90% but at higher rates.
Yes, but some uses are smarter than others. Home improvements that increase value, debt consolidation at lower rates, or education expenses are common. Avoid using equity for depreciating assets or discretionary spending.
Interest is deductible only if funds are used to 'buy, build, or substantially improve' your home (up to $750K combined mortgage debt). Consult a tax professional for your specific situation.