Updated · Built and checked by the PlinzoTools team, formulas tested against published sources
Calculate your home equity from your home's current value and remaining mortgage balance.
This tool calculates your home equity as current home value − remaining mortgage balance, along with that equity as a percentage of your home's value -- a starting point for understanding how much you might be able to borrow against via a home equity loan or HELOC.
Enter your home's current market value and your remaining mortgage balance. Your equity and equity percentage appear instantly.
Equity here is the difference between what your home is worth and what you still owe on your mortgage. The calculator subtracts your remaining balance from the home value and also shows that difference as a percentage of the home value. It uses a single mortgage balance, so if you also have a second mortgage, a HELOC, or other liens against the property, add them together before entering the balance or your equity will look higher than it really is.
Equity = home value - total debt secured by the home; Equity % = equity / home value x 100
Suppose a home is worth 400,000 dollars and you owe 250,000 dollars. Equity is 150,000 dollars, or 37.5 percent of the value. If the market softened and the home were worth 360,000 dollars with the same balance, equity would fall to 110,000 dollars, or about 30.6 percent. Alternatively, if you paid down the balance to 230,000 dollars while the value stayed at 400,000 dollars, equity would rise to 170,000 dollars, or 42.5 percent. Equity moves in both directions, driven by both payments and the market.
Lenders usually let you borrow against only a portion of your home value, keeping a cushion. They typically consider your combined loan-to-value ratio, credit, income, and debt levels. So if you have 150,000 dollars in equity, you should not assume you can borrow that entire amount. Ask a lender what combined loan-to-value limit applies to home equity loans and lines of credit, since it differs across lenders and products.
Equity on paper is not what you would receive at sale. Real estate commissions, closing costs, and other selling expenses reduce net proceeds, and none are included here. Borrowing against equity also puts your home at risk if you cannot repay, so consider a conversation with a financial adviser or housing counselor before tapping it. If the balance you enter exceeds the home value, the tool shows negative equity, meaning you owe more than the home is worth.
A recent professional appraisal is most accurate; online home-value estimators or comparable recent sales in your area can give a rough approximation in the meantime.
Yes. If the mortgage balance is larger than the home value, the result is negative, often described as being underwater.
Yes. Add any loans secured by the home to the mortgage balance so the equity reflects everything owed against the property.
No. This tool uses the current value you enter, not the original price. Appreciation or decline is captured only if you update the value.
Whenever values change noticeably or after you make large principal payments. Checking once or twice a year is plenty for most homeowners.
Reference: Consumer Financial Protection Bureau