Home Equity Calculators
Use our free home equity calculators to estimate how much equity you have in your home, how much you may be able to borrow, potential monthly payments, loan-to-value ratios, interest costs, and other important factors before using your home equity.
Featured Home Equity Calculators
Estimate how much equity you have in your home, explore borrowing options, calculate potential loan payments, and understand how accessing home equity could affect your finances.
Home Equity Loan Calculator
Estimate available borrowing power, fixed monthly payments, combined loan-to-value ratio, total interest, closing costs, and the long-term cost of a home equity loan.
Use Calculator →Reverse Mortgage Calculator
Estimate potential HECM reverse mortgage proceeds using factors such as borrower age, home value, existing mortgage balance, and other assumptions.
Use Calculator →HELOC Calculator
Estimate a potential home equity line of credit, available borrowing capacity, interest-only draw-period payments, repayment payments, and estimated interest costs.
Calculator Coming SoonHome Equity Calculator
Estimate your current home equity and equity percentage using your home's estimated market value and outstanding mortgage balance.
Calculator Coming SoonFour Numbers That Matter When Using Home Equity
The amount of equity shown on paper is not necessarily the amount you can borrow. These four numbers provide a clearer picture of your potential borrowing position.
Home Value
Your property's estimated current market value provides the starting point for calculating your home equity.
Mortgage Balance
Subtract your outstanding mortgage and other loans secured by the property to estimate your current equity.
CLTV Limit
Lenders may limit total borrowing based on combined loan-to-value, or CLTV, rather than allowing you to access all of your available equity.
New Payment
Borrowing against your home creates a new repayment obligation, so affordability matters just as much as available equity.
Recommended Home Equity Calculation Path
Start by understanding how much equity is available. Then evaluate the borrowing structure, payment, costs, and long-term impact before deciding how — or whether — to use that equity.
Calculate Your Current Home Equity
Begin with your estimated home value minus your current mortgage balance to understand your basic equity position.
Home Equity Loan Calculator
Estimate how much you may be able to borrow and compare the fixed monthly payment, interest cost, CLTV, fees, and repayment term.
Compare a HELOC
If you expect to borrow money over time rather than all at once, compare a revolving HELOC structure with a traditional lump-sum home equity loan.
Reverse Mortgage Calculator
Eligible older homeowners can explore whether a HECM reverse mortgage may provide another way to access accumulated home equity.
Compare the Long-Term Cost
Consider interest, fees, repayment requirements, future equity, and the effect borrowing may have on your larger financial plan.
How Is Home Equity Calculated?
Home equity is generally the difference between your home's current estimated market value and the amount you still owe on loans secured by the property.
For example, a home valued at $500,000 with a $300,000 remaining mortgage balance has approximately $200,000 in gross home equity. That does not mean the homeowner can necessarily borrow the entire $200,000. Lenders generally apply loan-to-value or combined loan-to-value limits and also consider factors such as income, credit, debt obligations, property value, and loan program requirements.
Ways to Access Home Equity
Home equity loans, HELOCs, and reverse mortgages all use home equity differently. The right structure depends on your borrowing needs, repayment preferences, eligibility, and financial goals.
Home Equity Loan
Typically provides a lump sum that is repaid through scheduled installments, often with a fixed interest rate.
- Lump-sum proceeds
- Typically fixed payments
- Defined repayment term
- Useful for known one-time expenses
HELOC
A home equity line of credit generally provides revolving access to available credit during an established draw period.
- Borrow funds as needed
- Revolving credit structure
- Rates are often variable
- Useful for ongoing expenses or projects
Reverse Mortgage
Eligible homeowners may be able to convert part of their home equity into loan proceeds without traditional monthly principal-and-interest mortgage payments.
- Eligibility requirements apply
- Designed primarily for older homeowners
- Several proceeds options may be available
- Loan balance generally increases over time
Related Home Equity Guides
Explore the fundamentals of home equity, borrowing strategies, repayment structures, and important factors to consider before using your home as collateral.
Frequently Asked Questions
What is home equity?
Home equity is the difference between the estimated market value of your home and the amount you owe on mortgages and other loans secured by the property. For example, if your home is worth $500,000 and you owe $300,000, you have approximately $200,000 in gross home equity.
How much home equity can I borrow?
The amount you may be able to borrow depends on your home's value, existing mortgage balance, lender combined loan-to-value limits, income, credit profile, debt-to-income ratio, property type, and other underwriting requirements. Available equity is not necessarily the same as available borrowing capacity.
What is CLTV?
Combined loan-to-value, or CLTV, compares the total balance of loans secured by your home with the home's value. If a $500,000 property has a $300,000 first mortgage and a $50,000 home equity loan, the combined secured debt is $350,000 and the CLTV is 70%.
What is the difference between a HELOC and a home equity loan?
A home equity loan generally provides a lump sum that is repaid through scheduled installments, commonly with a fixed rate. A HELOC generally provides a revolving line of credit that can be drawn from as needed and commonly has a variable interest rate.
Does a home equity loan replace my mortgage?
Usually not. A traditional home equity loan is commonly structured as a separate loan secured by the property, in addition to the existing first mortgage. A cash-out refinance works differently because it generally replaces the current mortgage with a new, larger loan.
Does borrowing against home equity reduce my equity?
Yes. Taking out a new loan secured by your home increases the amount owed against the property and therefore reduces your available equity, assuming the home's value remains unchanged.
What happens if my home's value decreases?
A decline in property value can reduce your equity and increase your loan-to-value ratio. Borrowing heavily against your property can therefore leave you with less financial flexibility if home values fall.
Is interest on a home equity loan tax deductible?
Tax treatment depends on applicable tax law and how the borrowed funds are used. A calculator should not be treated as tax advice. Consider consulting a qualified tax professional regarding your specific circumstances.
Which home equity calculator should I use first?
Start by estimating your current home equity using your home's value and mortgage balance. If you are considering a fixed lump-sum loan, use the Home Equity Loan Calculator next to estimate borrowing capacity, monthly payment, CLTV, fees, and total interest.
Is borrowing against home equity risky?
Home equity borrowing uses your property as collateral, which makes repayment particularly important. Loan costs, interest-rate risk, changing property values, monthly cash flow, and the possibility of foreclosure after default should all be considered before borrowing.