Home Equity Calculator
Calculate your home equity and explore borrowing options with our HELOC and home equity loan calculator.
Home Equity & HELOC Calculator
Discover your home's equity and explore borrowing options. Our calculator helps you compare HELOCs vs home equity loans, estimate monthly payments, and understand your borrowing capacity based on your home's value and existing mortgages.
Quick Calculation
Instantly see your available equity and maximum borrowing capacity
Compare Options
Side-by-side comparison of HELOC vs home equity loan payments
Future Projections
See how your equity will grow with home appreciation
Common Uses for Home Equity
- • Home improvements and renovations
- • Debt consolidation at lower rates
- • Education expenses
- • Emergency fund access
- • Investment property down payment
- • Starting a business
- • Major purchases
- • Medical expenses
Property Information
Rate on your existing loan
Years left on your existing loan
Loan Options
Years to repay after the draw period
For the 30-year refinance comparison
Future Projections
Current Home Equity
40.00% of home value
Home Value
Total Owed
Equity vs Owed
Borrowing Capacity
Quick Analysis
Important Considerations
- HELOC figures assume the full credit line is drawn on day one and stays drawn through the draw period — drawing less, or later, lowers the interest shown
- The cash-out refinance comparison assumes a new 30-year loan at the refi rate you enter
- Home equity loans and HELOCs use your home as collateral
- Interest rates shown are for illustration - actual rates vary by credit score and lender
- Closing costs typically range from 2-5% of the loan amount
- Some lenders require minimum draw amounts and charge annual fees
- Consult with multiple lenders to compare terms and find the best option
How it works
Home equity is the share of your home you actually own — its current market value minus everything you owe against it. As you pay down the mortgage and the home appreciates, equity grows. It's also the basis for how much you can borrow against the property.
Home equity
Equity = current value − mortgage balance Borrowing power ≈ value × maxLTV − balance
- current value
- today's market value of the home
- mortgage balance
- what you still owe
Worked example
- Home value = $400,000
- Mortgage balance = $250,000
- Equity = 400,000 − 250,000
$150,000 of equity (37.5% of the home's value).
Good to know
- Lenders cap combined borrowing at ~80–85% of value, so usable equity is less than total equity.
- Equity rises from both paying down principal and the home appreciating.
- It's illiquid — to turn equity into cash you must sell, refinance, or take a HELOC/loan.
Related Calculators
Frequently Asked Questions
How much can I borrow against my home equity?
Most lenders let you borrow until your combined loan-to-value (CLTV) — all mortgages and liens divided by the home's value — reaches 80-85%. For example, on a $500,000 home with a $300,000 mortgage, an 80% CLTV cap means you could borrow up to $100,000 ($500,000 × 80% − $300,000). Your credit score, income, and debt-to-income ratio also affect the approved amount.
What is the 80-85% CLTV limit and why does it exist?
CLTV (combined loan-to-value) is the total of every loan secured by your home divided by its appraised value. Lenders cap it at 80-85% so the home could still cover the debt after a price decline and selling costs. Staying at or below 80% CLTV usually gets you better rates; some lenders go to 85% or higher but charge more for the added risk.
What is the difference between a HELOC and a home equity loan?
A home equity loan pays out a lump sum that you repay with fixed monthly payments at a fixed rate — predictable and good for one-time expenses. A HELOC is a revolving credit line: during the draw period (often 10 years) you borrow as needed and typically pay interest only on what you have drawn; afterward you repay principal and interest over the repayment period. HELOCs offer flexibility but usually carry variable rates.
Are HELOC rates fixed or variable?
Most HELOCs have variable rates tied to the prime rate, so your payment can rise or fall as rates change. Home equity loans are usually fixed-rate. Some lenders offer hybrid HELOCs that let you lock a fixed rate on part of the balance. When comparing options, check the margin over prime, any introductory rate period, and rate caps.
Is home equity loan or HELOC interest tax-deductible?
Since the 2017 Tax Cuts and Jobs Act, interest on home equity debt is deductible only if the money is used to buy, build, or substantially improve the home securing the loan — and only if you itemize deductions. Using the funds for debt consolidation, tuition, or other spending makes the interest non-deductible. Combined mortgage debt limits also apply, so confirm specifics with a tax professional.