How the home equity calculator works
Enter your home's current value and your remaining mortgage balance. The calculator subtracts the balance from the value to find your equity, then applies a typical 80% maximum loan-to-value limit to show your available borrowing power.
It also shows your current loan-to-value ratio — the figure lenders check first when you apply for a home equity loan or line of credit.
Worked example: $60,000 available on a $450,000 home
A home worth $450,000 with a $300,000 mortgage balance holds $150,000 in equity, and the loan-to-value ratio sits at 66.7%. At an 80% maximum LTV, the most you could borrow against it is $60,000.
That 20% cushion is the lender's safety margin — it stays untouched so a dip in home prices doesn't leave the loan underwater.
What to watch out for
Home values are estimates until an appraisal says otherwise — a hot market can flatter your equity on paper. Lenders use their own valuation, and it may come in lower than you expect.
Borrowing against equity also puts your home on the line as collateral. Only tap it for needs that build value or cut costs — not for spending that evaporates. Figures here are estimates, not financial advice.
Frequently asked questions
What is home equity?
Equity is the part of your home you truly own: its current value minus what you still owe on the mortgage. It grows as you pay down the loan and as the home's value rises — and shrinks if prices fall.
How much equity can I borrow?
Most lenders cap total borrowing at 80% of your home's value, though some go to 85% or 90% with stricter terms. Subtract your mortgage balance from that ceiling and the remainder is roughly what you could access through a loan or line of credit.
HELOC vs home equity loan — what's the difference?
A home equity loan gives you a lump sum with a fixed rate and fixed payments. A HELOC works like a credit card: a revolving credit line, usually with a variable rate, that you draw from as needed during a draw period.
Does borrowing against equity affect my mortgage?
Your original mortgage stays as-is; the equity loan is a second, separate lien. But it adds a monthly payment and uses your home as collateral — miss payments and you risk foreclosure on top of the first mortgage.