Home Equity Calculator
Calculate your home equity, loan-to-value ratio, and tappable equity. Project equity growth over 5–15 years with appreciation and mortgage paydown. See how much cash you can access at 80%, 85%, or 90% LTV.
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Home Equity
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Equity Percentage —
Loan-to-Value (LTV) —
Extended More scenarios, charts & detailed breakdown ▾
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Net Home Equity
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Equity % —
Combined LTV —
Professional Full parameters & maximum detail ▾
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Equity Summary
Net Home Equity —
Tappable Equity at 80% LTV —
Current Combined LTV —
Investment Performance
Equity Gained Since Purchase —
Return on Down Payment —
PMI Removal — Balance Must Be Below —
How to Use This Calculator
- Enter your current home value and remaining mortgage balance for an instant equity and LTV calculation.
- Use the Equity Over Time tab to project your equity 5, 10, or 15 years into the future with an appreciation rate.
- Use the Cash-Out Options tab to see how much you can access at 80%, 85%, and 90% LTV.
- Use the Professional tab for a full equity analysis including tappable equity, return on down payment, and PMI removal threshold.
Formula
Home Equity = Current Value − All Liens
LTV = Mortgage Balance / Home Value × 100
Tappable Equity (80% LTV) = Home Value × 0.80 − Mortgage Balance
LTV = Mortgage Balance / Home Value × 100
Tappable Equity (80% LTV) = Home Value × 0.80 − Mortgage Balance
Example
Example: Home value $400,000, mortgage balance $250,000. Equity = $150,000 (37.5%). LTV = 62.5%. Tappable at 80% LTV = $400,000 × 0.80 − $250,000 = $70,000.
Frequently Asked Questions
- Home equity = Current Home Value − All Liens (mortgage balance + HELOC). For example, if your home is worth $400,000 and you owe $250,000, you have $150,000 in equity, representing 37.5% equity (62.5% LTV).
- Most lenders allow you to borrow up to 80–85% of your home's value minus existing mortgage balances. At 80% LTV on a $400,000 home with $250,000 mortgage: tappable = $400,000 × 0.80 − $250,000 = $70,000. Some lenders go to 90% but charge higher rates.
- PMI (Private Mortgage Insurance) is typically required until your LTV drops to 80% of the original purchase price — not the current value. You can request cancellation when you reach 80% LTV. Lenders must automatically cancel when you reach 78% based on the original schedule.
- Home equity grows through (1) mortgage principal paydown with each payment, (2) home appreciation over time, and (3) home improvements that add value. In the early years of a mortgage, most payments go toward interest — principal paydown accelerates over time.
Related Calculators
Sources & References (5) ▾
- CFPB — Home Equity Loans and Lines of Credit — Consumer Financial Protection Bureau
- Federal Reserve — Home Equity Lending Guide — Federal Reserve
- IRS — Home Equity Interest Deduction — Internal Revenue Service
- HUD — Building Home Equity — U.S. Department of Housing and Urban Development
- Fannie Mae — Home Value and Equity Estimation — Fannie Mae