See how much of your home you actually own. Enter the current value and every loan against the property to get your equity, loan-to-value (LTV), combined loan-to-value (CLTV) and the amount a lender could let you borrow at 80%, 85% or 90% CLTV.
Last updated:
Your home
$
Use a recent appraisal, comparable sales or an online estimate.
$
Shows how much the home has appreciated.
Loans secured by the home
$
$
$
$
Tax liens, judgments or solar loans with a lien on the property.
Borrowing limit
%
Many lenders allow 80% to 90% combined loan-to-value.
%
Agent commission, transfer tax and other closing costs. Enter 0 to skip.
Enter your values to see the result.
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How to use the Home Equity Calculator
Enter the current home value from an appraisal, recent sales nearby or an online estimate.
Add every loan secured by the home: first mortgage, second mortgage or home equity loan, HELOC balance and any other liens.
Set the lender's maximum CLTV (often 80% to 90%) to see how much you could borrow.
Optionally add selling costs and your purchase price to see net sale proceeds and appreciation.
Read your equity, LTV and CLTV, then compare borrowing limits in the table.
Home equity formulas
Equity = home value − (first mortgage + second mortgage + HELOC balance + other liens)
Equity % = equity ÷ home value × 100
LTV = first mortgage balance ÷ home value × 100
CLTV = total of all loans ÷ home value × 100
Available equity = home value × maximum CLTV − total of all loans (never below zero)
Example: a $450,000 home with a $260,000 mortgage has $190,000 of equity (42.2%), an LTV and CLTV of 57.8%, and could support up to $100,000 of new borrowing at 80% CLTV, $122,500 at 85% and $145,000 at 90%.
What different equity levels usually mean
CLTV
Equity
What it typically means
Above 100%
Negative
Underwater: selling or refinancing needs extra cash
90% – 100%
0% – 10%
Little room to borrow; PMI likely on a conventional first mortgage
80% – 90%
10% – 20%
Some lenders offer HELOCs or equity loans up to 85–90% CLTV
78% – 80%
20% – 22%
On conventional loans you can ask to cancel PMI at 80% LTV; it ends automatically at 78% of the original value
Below 80%
Over 20%
Widest choice of cash-out refinance, HELOC and home equity loan options
Tips for an accurate equity estimate
Use a realistic value. Online estimates can be off by several percent; recent sales of similar homes nearby are a better guide, and a lender will order its own appraisal.
Use the payoff balance from your latest mortgage statement, not the original loan amount.
Include every lien. Some solar panel loans, unpaid property taxes and court judgments are recorded against the home.
Keep a cushion. Borrowing all available equity leaves you exposed if home prices fall.
Frequently asked questions
How do I calculate my home equity?
Home equity = current market value − everything you owe on the home. If your home is worth $450,000 and your mortgage balance is $260,000, your equity is $190,000, or about 42% of the value.
What is the difference between LTV and CLTV?
LTV (loan-to-value) compares only your first mortgage to the home value. CLTV (combined loan-to-value) adds every loan secured by the home, such as a second mortgage, home equity loan or HELOC. Lenders use CLTV to decide how much more you can borrow.
How much equity can I borrow?
Lenders cap total debt at a percentage of the home value, commonly 80% to 90% CLTV. Available equity = home value × CLTV limit − all current loan balances. With a $450,000 home, $260,000 owed and an 85% limit, that is $382,500 − $260,000 = $122,500.
Should I use the full HELOC limit or the balance owed?
For your equity, use what you currently owe. Lenders, however, often count the full credit limit of an open HELOC when they calculate CLTV for a new loan, so check with them if you have unused credit.
What does it mean to have negative equity?
Negative equity, or being underwater, means you owe more than the home is worth. You would have to bring money to closing to sell, and you usually cannot borrow against the home until values rise or the balance falls.
Why is my sale proceeds figure lower than my equity?
Selling a home has costs such as agent commissions, transfer taxes and closing fees, often several percent of the price. The calculator subtracts the percentage you enter to estimate the cash you would actually walk away with.
How can I increase my home equity?
You build equity by paying down the loan, with regular or extra principal payments, and through rising market values or improvements that add value. Borrowing against the home lowers it.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.