Home equity calculator
Estimate home equity, equity percent, and loan-to-value from home value and mortgage balance.
What this calculator covers
Estimate the dollar equity, equity percentage, and loan-to-value ratio from a current home value estimate and remaining mortgage balance.
The walkthrough keeps both ownership value and leverage visible so the result is useful for refinance and liquidity planning.
Frequently asked questions
- How is home equity calculated?
- Equity equals the estimated home value minus the outstanding mortgage balance. If your home is worth $400,000 and you owe $250,000, your equity is $150,000 — or 37.5% of the home's value.
- What is loan-to-value (LTV) and why does it matter?
- Loan-to-value is the mortgage balance divided by the home value, expressed as a percentage. Lenders use LTV to assess risk: a lower LTV generally qualifies borrowers for better rates and makes it easier to remove private mortgage insurance.
- Can I have negative equity?
- Yes. If your mortgage balance exceeds your home's current value — sometimes called being "underwater" — your equity figure is negative. This can limit refinancing options and make selling the home without bringing cash to closing difficult.
- Does a home equity estimate require an appraisal?
- For planning purposes, an estimated market value is sufficient. However, lenders typically require a formal appraisal or automated valuation when you apply for a home equity loan, HELOC, or refinance.
Tool
Run the calculation
Result
RESULT · HOME EQUITY
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Primary result
$175,000.00
A $450,000.00 home with $275,000.00 still owed leaves $175,000.00 of equity, or 38.89% of the home value.
- Equity amount
- $175,000.00
- Equity percent
- 38.89%
- Loan-to-value
- 61.11%
Step-by-step solution
- 1.Subtract the mortgage balance from the home value: $450,000.00 - $275,000.00 = $175,000.00 of equity.
- 2.Divide the equity amount by the home value to get 38.89% of ownership value.
- 3.Divide the mortgage balance by the home value to get an estimated 61.11% loan-to-value ratio.
Walkthrough
Visual walkthrough
Home equity compares what the property is worth against what is still owed so you can see both ownership value and leverage at the same time.
01
Start with value and balance
$450,000.00 - $275,000.00
The gap between value and mortgage balance is the homeowner's equity position.
02
Convert equity to a percent
Expressing equity relative to the home value makes it easier to compare leverage across different homes.
38.89% equity
03
Read the leverage ratio
Loan-to-value shows how much of the home is still financed instead of owned free and clear.
61.11% LTV