Home Equity Calculator
See exactly how much equity you have in your home and how much you can borrow against it. Compare HELOC, home equity loan, and cash-out refinance options at a glance.
What is home equity?
Home equity is the portion of your home you actually own — the difference between your home's current market value and the total of all mortgages secured by it. If your home is worth $600,000 and you owe $280,000 on your mortgage, you have $320,000 in equity.
Why CLTV matters
Lenders rarely let you borrow against 100% of your equity. They cap the combined loan-to-value (CLTV) ratio — your total mortgage debt divided by your home's value — at 80%, 85%, or 90% in most cases. The lower the cap, the more equity you have to leave untouched as a cushion against price drops.
Your usable equity at any CLTV is:
Usable Equity = (Home Value × CLTV cap) − All Mortgage Balances
HELOC vs Home Equity Loan vs Cash-Out Refinance
Three common ways to access your equity:
- HELOC — A revolving line of credit with a variable rate. Draw what you need over 10 years, then repay over 20.
- Home equity loan — A fixed-rate lump sum repaid over a fixed term. Predictable payments.
- Cash-out refinance — Replace your existing mortgage with a larger one and pocket the difference. Higher closing costs but only one loan to manage.
What affects your actual borrowing power
The numbers in this calculator are theoretical maximums. Your actual approved amount also depends on:
- Credit score (most lenders want 680+ for HELOCs)
- Debt-to-income ratio (typically capped at 43-50%)
- Income and employment stability
- Property type (single-family vs multi-unit vs investment)
- Lender-specific underwriting
Disclaimer: This calculator provides estimates only. Actual borrowing power depends on credit score, income, debt-to-income ratio, property type, and lender underwriting. This is not financial advice. Consult a licensed mortgage professional before making a decision.