Quick answer
Home equity = home value − mortgage balance, and available equity = max(0, value × lender limit − balance). A $400,000 home with a $250,000 mortgage has $150,000 of equity, a loan-to-value of 62.5%, and with an 80% combined limit $70,000 available to borrow.
Enter the home value, mortgage balance and the lender's combined loan-to-value limit. The calculator returns equity, LTV and available equity.
Related tools: Take-Home Pay Calculator: Estimate net pay from gross pay using a flat combined tax rate. Price per Square Foot Calculator: Price divided by floor area. Land Area Calculator: Area of a rectangular, triangular or circular lot in acres, hectares and square units.
How to use the Home Equity Calculator
- Enter home value ($) (above 0).
- Enter mortgage balance ($) (0 or more).
- Enter lender combined loan-to-value limit (%) (between 0 and 100).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Home value | A number, in $ | > 0 |
| Mortgage balance | A number, in $ | ≥ 0 |
| Lender combined loan-to-value limit | A number, in % | > 0, ≤ 100 |
Formula and method
Formula
equity = value − balance; available = max(0, value × limit − balance)
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
The limit is lender-specific, so you enter it.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Home value = 400000; Mortgage balance = 250000; Lender combined loan-to-value limit = 80.
| Result | Value |
|---|---|
| Home equity | $150,000.00 |
| Loan-to-value | 62.5% |
| Available to borrow | $70,000.00 |
Example 2
Inputs: Home value = 300000; Mortgage balance = 280000; Lender combined loan-to-value limit = 85.
| Result | Value |
|---|---|
| Home equity | $20,000.00 |
| Loan-to-value | 93.3333% |
| Available to borrow | $0.00 |
The first line is the headline result (home equity). Below it the home Equity Calculator lists loan-to-value and available to borrow, which describe the same case from other angles. IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
The 80% rule
Lenders often let you borrow up to 80% of the home value in total. 80% of $400,000 is $320,000; subtract the $250,000 mortgage to get $70,000. Some lenders allow 85% or 90%.
Negative equity
A home worth less than its mortgage is underwater and shows negative equity. Value is an estimate: an appraisal sets the figure lenders use.
How the result changes with home value
Holding every other input at the first worked example, this table changes only home value. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Home value | Home equity | Loan-to-value | Available to borrow |
|---|---|---|---|
| 200000 | -$50,000.00 | 125% | $0.00 |
| 400000 | $150,000.00 | 62.5% | $70,000.00 |
| 800000 | $550,000.00 | 31.25% | $390,000.00 |
| 1600000 | $1,350,000.00 | 15.625% | $1,030,000.00 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Home value: entering "0" shows "Home value must be greater than 0." beside that field and no result.
- Lender combined loan-to-value limit: entering "0" shows "Lender combined loan-to-value limit must be greater than 0." beside that field and no result.
Choosing between the Home Equity Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Take-Home Pay Calculator](/finance/take-home-pay-calculator/) | annual gross pay and total tax rate | Annual take-home pay |
| [Price per Square Foot Calculator](/real-estate/price-per-sqft/) | price and area | Price per sq ft |
| [Land Area Calculator](/real-estate/land-area-calculator/) | shape, length unit and dimension A | Area (sq ft) |
| [Property Appreciation Calculator](/real-estate/property-appreciation-calculator/) | current value, annual appreciation and years | Projected value |
| [Property Tax Estimate Calculator](/real-estate/property-tax-estimate-calculator/) | assessed value and tax rate | Annual property tax |
Background: personal finance estimates
Financial calculators project from the numbers you give them. Long-range tools depend on guesses about returns and tax rates that are unlikely to hold exactly, payoff tools assume a fixed payment and rate, and tax or salary results depend on the tax year, filing status and country. Official calculators say their output is for reference only.
For decisions that matter, use conservative inputs and check the figures against your lender, plan documents or a qualified adviser.
Assumptions and limitations
- Underwater homes show negative equity
Results are estimates for planning, not financial advice. Lender terms, fees, taxes and rounding rules can change real figures, so confirm important numbers with your lender or a licensed adviser.
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for home value and lender combined loan-to-value limit to confirm this.
Frequently asked questions
What is LTV?
Loan balance divided by value.
How can I increase equity?
Pay down principal or the home may appreciate.
Does it include closing costs?
No. It uses the home value and mortgage balance only; selling costs and closing costs would reduce the cash you could take out.
What does the Home Equity Calculator calculate?
Equity, loan-to-value and borrowing room against a lender limit. It returns Home equity, Loan-to-value and Available to borrow.
What formula does the Home Equity Calculator use?
equity = value − balance; available = max(0, value × limit − balance). The limit is lender-specific, so you enter it.
What do I need to enter in the home Equity Calculator?
You enter Home value ($), Mortgage balance ($) and Lender combined loan-to-value limit (%).
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. Underwater homes show negative equity.
What is an example of a home Equity result?
With home value 400000, mortgage balance 250000 and lender combined loan-to-value limit 80, the home equity is $150,000.00.
Can I rely on this calculator for a decision?
Results are estimates for planning, not financial advice. Lender terms, fees, taxes and rounding rules can change real figures, so confirm important numbers with your lender or a licensed adviser. For this calculator in particular: Underwater homes show negative equity.
Related calculators
- Take-Home Pay Calculator — Estimate net pay from gross pay using a flat combined tax rate.
- Price per Square Foot Calculator — Price divided by floor area.
- Land Area Calculator — Area of a rectangular, triangular or circular lot in acres, hectares and square units.
- Property Appreciation Calculator — Projected property value at an assumed yearly appreciation rate.
- Property Tax Estimate Calculator — Annual property tax from an assessed value and the rate you enter.
- Return on Equity Calculator — Net income relative to average shareholders' equity.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.