Use this home equity calculator to find your equity in dollars and percent, your current LTV, and how much equity you can borrow at an 80 to 85 percent cap.
Home Equity Formula
Home equity is the portion of your home’s value that you actually own. The calculator subtracts everything you owe against the home from its current market value:
HE = V - (M + S)
It then expresses that equity as a percentage of the home’s value and estimates how much of it a lender would actually let you borrow at a given combined loan-to-value cap:
E% = HE / V * 100 TE = V * (LTVmax / 100) - (M + S)
Variables:
- HE is your home equity in dollars
- V is the current market value of the home
- M is the remaining balance on your first mortgage
- S is any second mortgage or HELOC balance (0 if none)
- E% is your equity as a percentage of the home’s value
- LTVmax is the maximum combined loan-to-value ratio your lender allows, typically 80–85%
- TE is the tappable (borrowable) equity, floored at zero
Enter your home’s current value and your remaining mortgage balance. If you already have a HELOC or home equity loan against the property, use the advanced toggle to add that balance so the calculator works from your total secured debt. The maximum combined LTV setting controls the borrowing cap: at the common 80% cap, a lender will let your total mortgage debt reach 80% of the home’s value, and your tappable equity is whatever room is left under that ceiling.
The results show your equity in dollars, your equity as a percent of value, your current loan-to-value ratio, and the amount you could realistically borrow at the selected cap. Tappable equity is always smaller than total equity because lenders will not let you borrow all the way down to zero equity.
Home Equity and Borrowable Equity by Value and Balance
This table shows total equity and borrowable (tappable) equity at the common 80% combined LTV cap for typical combinations of home value and total mortgage debt.
| Home value | Mortgage debt | Home equity | Equity % | Borrowable at 80% CLTV |
|---|---|---|---|---|
| $300,000 | $200,000 | $100,000 | 33.33% | $40,000 |
| $350,000 | $250,000 | $100,000 | 28.57% | $30,000 |
| $400,000 | $250,000 | $150,000 | 37.50% | $70,000 |
| $400,000 | $300,000 | $100,000 | 25.00% | $20,000 |
| $500,000 | $300,000 | $200,000 | 40.00% | $100,000 |
| $500,000 | $350,000 | $150,000 | 30.00% | $50,000 |
| $600,000 | $400,000 | $200,000 | 33.33% | $80,000 |
| $750,000 | $450,000 | $300,000 | 40.00% | $150,000 |
Example Problems
Example 1: Find home equity and borrowable equity with a single mortgage.
Your home is worth $450,000 and you owe $280,000 on your mortgage, with no other liens, and your lender caps combined LTV at 80%. Subtract the debt from the value:
HE = 450,000 – 280,000 = $170,000.00 of equity, which is 37.78% of the home’s value, so your current LTV is 62.22%. Tappable equity = 450,000 * 0.80 – 280,000 = $80,000.00.
Example 2: Find borrowable equity with a HELOC already in place.
Your home is worth $380,000, you owe $240,000 on the first mortgage and $20,000 on a HELOC, and your lender allows an 85% combined LTV. Total debt is 240,000 + 20,000 = $260,000.
HE = 380,000 – 260,000 = $120,000.00, which is 31.58% equity with a current combined LTV of 68.42%. Tappable equity = 380,000 * 0.85 – 260,000 = $63,000.00.
Frequently Asked Questions
How much of my home equity can I actually borrow?
Most lenders let your total mortgage debt reach 80% to 85% of your home’s value across all liens, so your borrowable amount is that cap minus what you already owe, not your full equity. A few lenders go to 90% combined LTV, usually at higher rates. You must also qualify on credit score, income, and debt-to-income ratio, so the cap is a ceiling rather than a guarantee.
How do lenders determine my home’s value?
For a home equity loan or HELOC, the lender typically orders an appraisal or uses an automated valuation model (AVM) to set the value used in the LTV math. That figure can come in above or below your own estimate, which directly changes how much you can borrow. If you believe the valuation is too low, you can usually supply comparable sales or request a full appraisal.
What is the difference between a home equity loan and a HELOC?
A home equity loan pays out a lump sum at a fixed rate with level monthly payments, which suits one-time expenses. A HELOC is a revolving credit line with a variable rate: you draw what you need during the draw period and pay interest only on the balance. Both are second liens against your home and count toward the same combined LTV cap.
