What's a good LTV ratio?

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.

Can I use home equity for anything?

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.

Is home equity loan interest tax-deductible?

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.

Finance

Home Equity Calculator

Calculate your home equity, loan-to-value ratio, and potential borrowing power for HELOCs or home equity loans

Home Value

Mortgage Balance

Max LTV (%)

HELOC Interest Rate (%)

Loan Term (Years)

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Unlock Your Home's Financial Potential

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.

What is Home Equity?

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

Equity = Home Value - Mortgage Balance

How to Use This Calculator

Home Equity Applications

Home Renovation Financing

Fund kitchen remodels, additions, or major repairs using your equity.

Debt Consolidation

Replace high-interest credit card debt with lower home equity rates.

Emergency Fund Access

Establish a HELOC as a financial safety net for unexpected expenses.

Frequently Asked Questions

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.