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Home, Property & Mortgages

Home Equity Calculator

Calculate your home equity, combined loan-to-value ratio and how much a lender might let you borrow against the home.

Your inputs

Results

Home equity

$200,000.00

Equity as % of value
40%
Current combined LTV
60%
Estimated amount you could borrow
$125,000.00

≈Estimate based on the stated model and assumptions

Inputs are never added to links for financial, salary or health calculators.

What this calculator does

Equity is the share of the home you own outright. Lenders typically cap combined borrowing at a percentage of the home’s value, which limits home-equity loans and lines of credit.

Formula and method

Equity = value − all secured debt Combined LTV = secured debt ÷ value; Borrowable ≈ value × max CLTV − secured debt

Worked example

Calculated by this tool with its default inputs:

Inputs

  • Current home value: 500000 (any currency)
  • Mortgage balance: 300000 (any currency)
  • Other loans secured on the home: 0 (any currency)
  • Lender’s maximum combined loan-to-value: 85 %

Results

  • Home equity: 200,000
  • Equity as % of value: 40%
  • Current combined LTV: 60%
  • Estimated amount you could borrow: 125,000

How to read the results

Negative equity means the home is worth less than you owe.

Assumptions and limitations

  • Use a realistic value; lenders will rely on an appraisal.
  • Approval also depends on income and credit.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

What is a typical maximum CLTV?

It varies by lender and product; 80–90 % is common for home-equity lending.

Methodology and verification

Result type
Estimate based on the stated model and assumptions
Formula version
1.0
Automated verification
3 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Because this calculator can involve personal financial or health details, your inputs are never added to share links or saved to history. Privacy policy