Home Equity Calculator
Calculate your home equity, loan-to-value ratio, and available equity for borrowing. Understand your financial position in your property.
Published by:
isCalculator Editorial Team
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How to use this tool?
This calculator determines your home equity, loan-to-value ratio (LTV), and available equity based on a standard 80% LTV threshold.
- Enter Current Home Value ($): Input the current market value of your home (e.g., 350000).
- Enter Outstanding Mortgage Balance ($): Input the remaining amount you owe on your mortgage (e.g., 200000).
- Click "Calculate Equity": Press the button or hit Enter after entering values.
Results explained:
- Home Equity: Your ownership stake (Home Value minus Mortgage Balance).
- Loan-to-Value (LTV): The percentage of your home’s value that is mortgaged.
- Available Equity (80% LTV): The maximum equity you could potentially borrow against, assuming lenders allow up to 80% LTV. If negative, it shows $0.
All values must be positive numbers, and the mortgage balance cannot exceed the home value.
Previous Results
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Frequently Asked Questions
Home equity is the difference between your home's current market value and the outstanding balance of your mortgage. It represents the portion of your home that you truly own.
LTV is calculated by dividing your outstanding mortgage balance by your home's current value, then multiplying by 100. For example, a $200,000 mortgage on a $350,000 home gives an LTV of about 57%.
Available equity typically refers to the amount you could potentially borrow against your home, often capped at 80% LTV. It is calculated as 80% of your home's value minus your mortgage balance.
