Toolzie

Home Equity Calculator

See how much equity you have and how much you can borrow

Current market value (appraisal or online estimate)

Remaining first mortgage balance

Existing second mortgage or HELOC balance

Lender max combined loan-to-value (typically 80%)

How to Use the Home Equity Calculator

Enter your home's current market value, your remaining mortgage balance, and any second mortgage or HELOC balance. The calculator shows your total equity, equity percentage, current loan-to-value (LTV) ratio, and how much you could borrow through a home equity loan or HELOC.

Your home equity grows as you pay down your mortgage and as your home appreciates in value. Knowing your equity helps you decide whether to refinance, take out a HELOC, sell, or wait.

Frequently Asked Questions

What is home equity?

Home equity is the portion of your home that you truly own — your home's current market value minus everything you owe against it (your mortgage, second mortgage, and any HELOC balance). As you pay down your mortgage and your home appreciates, your equity grows.

What is a good LTV ratio for a home equity loan or HELOC?

Most lenders require your combined loan-to-value (CLTV) ratio to be 80% or lower to qualify. That means you need at least 20% equity. Some lenders go up to 85-90% CLTV, but the best rates are at 80% or below.

How much can I borrow against my home equity?

Typically, lenders let you borrow up to 80-85% of your home's value minus what you already owe. For example, if your home is worth $500,000 and you owe $300,000, you may be able to borrow up to $125,000.

What's the difference between a home equity loan and a HELOC?

A home equity loan gives you a lump sum with a fixed rate and fixed payments. A HELOC works like a credit card — you draw from a revolving line as needed, with a variable rate. HELOCs offer flexibility; home equity loans offer predictability.

Related Tools

Explore these six tools to understand your home's finances from every angle:

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Use your equity wisely

Plan your next move — refinance, sell, or borrow against your home's value:

🔄 Should I Refinance? Compare your current rate vs today's rates for savings. 🏠 Home Sale Proceeds Net cash after commissions and closing costs when you sell. 🏦 Mortgage Calculator Monthly payment + amortization for your home loan. 💵 Down Payment Calculator How much do you need to save for your next home? 🛒 Home Equity Loan Guides Top-rated books on using your home equity wisely (affiliate link). 📈 Real Estate Investing Books Grow your equity — top investing guides (affiliate link).

About This Tool

The Toolzie Home Equity Calculator helps homeowners determine how much equity they've built in their property. Enter your home's current market value, your remaining mortgage balance, and any second mortgage or HELOC balance to instantly see your total equity, equity percentage, current loan-to-value (CLTV) ratio, and how much you could borrow through a home equity loan or HELOC.

How to Use

  1. Enter your home's current market value — use a recent appraisal, tax assessment, or online estimate.
  2. Enter your remaining first mortgage balance (check your latest statement).
  3. Add any second mortgage or existing HELOC balance if applicable.
  4. Set the max CLTV ratio your lender allows (typically 80%, adjustable up to 90%).
  5. Click Calculate to see your equity, LTV ratio, and available borrowing power.

Frequently Asked Questions

What is home equity?

Home equity is the portion of your home that you truly own — your home's current market value minus everything you owe against it (your mortgage, second mortgage, and any HELOC balance). As you pay down your mortgage and your home appreciates, your equity grows.

What is a good LTV ratio for a home equity loan or HELOC?

Most lenders require your combined loan-to-value (CLTV) ratio to be 80% or lower to qualify. That means you need at least 20% equity. Some lenders go up to 85-90% CLTV, but the best rates are at 80% or below.

How much can I borrow against my home equity?

Typically, lenders let you borrow up to 80-85% of your home's value minus what you already owe. For example, if your home is worth $500,000 and you owe $300,000, you may be able to borrow up to $125,000.

What's the difference between a home equity loan and a HELOC?

A home equity loan gives you a lump sum with a fixed rate and fixed payments. A HELOC works like a credit card — you draw from a revolving line as needed, with a variable rate. HELOCs offer flexibility; home equity loans offer predictability.

Does my home's assessed value equal its market value?

Not necessarily. Tax assessed values are set by local governments for property tax purposes and often lag behind the real market value. Lenders typically require a professional appraisal to determine your home's current market value for equity loan purposes.

Estimates only. Not financial, tax, or legal advice. Full disclaimer · Terms