Free tools • Instant results • No signup

Home Equity Calculator

Estimate how much equity you have in your property and see your loan-to-value ratio (LTV). Enter your current property value and remaining mortgage balance for an instant estimate.

How to use this Home Equity Calculator

Estimate how much equity you have in your property by entering its current estimated value and the amount you still owe on your mortgage.

Step 1: Choose Your Currency

Select the currency you want to use in the calculator.

Step 2: Enter Your Current Property Value

Enter an estimate of what your property is worth today. You might base this on recent comparable sales, a property valuation, or another reasonable estimate of current market value.

Step 3: Enter Your Remaining Mortgage Balance

Add the amount you currently owe on your mortgage or home loan.

Step 4: Calculate Your Home Equity

The calculator will estimate:

your home equity amount
your equity percentage
your remaining mortgage balance
your loan-to-value ratio (LTV)

What the Results Mean

Home equity is the difference between your property's estimated value and the amount you still owe.

For example, if your property is worth $800,000 and your remaining mortgage is $450,000, your estimated equity is:

$800,000 − $450,000 = $350,000

That represents approximately 43.8% equity, while your loan-to-value ratio is approximately 56.3%.

Tip

Your home equity can change as you repay your mortgage and as your property's market value rises or falls.

Checking your equity can be useful when considering refinancing, selling your property, or reviewing your overall financial position.

What is a Home Equity Calculator?

For example, if your property is worth $800,000 and your remaining mortgage balance is $450,000, your estimated home equity is:

$800,000 − $450,000 = $350,000

This means you have approximately $350,000 in home equity before taking into account any selling costs, fees, or other debts secured against the property.

Why Does Home Equity Matter?

Your home equity can change over time. It may increase as you repay your mortgage or if your property rises in value. It can also decrease if property values fall or if you increase the amount borrowed against your home.

Knowing your estimated equity can be useful when you are:

Considering refinancing your mortgage
Planning to sell and estimating how much equity you may have before selling costs
Exploring borrowing options that may use your property as security
Planning renovations or other major expenses
Tracking your mortgage progress as your loan balance decreases
Checking your loan-to-value ratio (LTV)

What Is Loan-to-Value Ratio (LTV)?

Your loan-to-value ratio compares your remaining mortgage balance with your property's estimated value.

Using the same example:

$450,000 ÷ $800,000 × 100 = 56.3% LTV

That means approximately 56.3% of the property's value is financed by the mortgage, while your estimated equity represents approximately 43.8%.

Keep in Mind

The result from this calculator is an estimate only. Property values can change, and lenders may use their own property valuations and lending criteria when determining your available equity.

Your usable or borrowable equity may also be lower than your total home equity.

white and brown concrete building under blue sky during daytime

How Much Home Equity Can You Use?

Your total home equity and the amount you may actually be able to borrow against are not necessarily the same.

Your total equity is simply the difference between your property's current estimated value and your remaining mortgage balance. However, lenders may limit how much of your property's value they are willing to lend against.

This is usually expressed as a loan-to-value ratio (LTV).

Total Equity vs Usable Equity

For illustration, suppose a lender allows borrowing up to 80% of the property's value.

Using a property worth $800,000:

Property value: $800,000
80% of property value: $640,000
Current mortgage balance: $450,000
Potential usable equity: $190,000

The calculation is:

($800,000 × 80%) − $450,000 = $190,000

In this example, the homeowner has $350,000 in total equity, but only $190,000 would potentially be usable under an 80% LTV limit.

Can You Borrow All of Your Usable Equity?

Not necessarily.

The amount you can actually borrow will depend on the lender and your circumstances. Lenders may consider factors such as your:

income and expenses
existing debts
credit history or credit profile
ability to afford the additional repayments
property valuation
local lending requirements

Some lenders or loan products may allow a higher or lower LTV, and additional fees, insurance or lending conditions may apply.

Important: Usable equity is an estimate of equity that may potentially be available. It does not mean you will automatically qualify to borrow that amount.

brown and white concrete house under blue sky during daytime

Ways to Use Home Equity

As your home equity grows, you may have the option to borrow against part of it. Homeowners may consider accessing equity for a range of purposes, depending on their financial situation and their lender's requirements.

Common uses include:

Home renovations or improvements
Fund renovations, repairs or upgrades to your property. Some improvements may increase your property's value, although this is not guaranteed.
Buying another property
Some homeowners use available equity toward the purchase of another home or investment property. Additional lending requirements will normally apply.
Debt consolidation
Higher-interest debts may sometimes be consolidated into a mortgage or home-equity loan. This can reduce the interest rate or monthly repayments, but stretching short-term debt over a longer loan term can increase the total interest paid.
Education or other major expenses
Available equity may be used to help fund significant planned expenses, depending on the borrowing options available to you.
Refinancing
Having more equity and a lower loan-to-value ratio may give you additional options when comparing mortgage products or refinancing.

Before Using Your Home Equity

Accessing equity usually means increasing the amount you owe and using your property as security.

Before borrowing against your home, consider the additional repayments, interest costs, fees, loan term and what would happen if your financial circumstances changed.

Your total home equity also isn't necessarily the amount you can borrow. The amount available will depend on your lender, property valuation, borrowing capacity and other eligibility requirements.

Risks of Using Home Equity

Borrowing against your home equity can provide access to additional funds, but it also increases your financial commitments. Before using your equity, it is important to understand the potential risks.

Increased debt
Accessing your equity generally means borrowing more money. This increases the amount you owe and may extend the time it takes to repay your mortgage.
Higher interest costs
Increasing your mortgage balance or extending your loan term can increase the total amount of interest you pay over time.
Higher repayments
Additional borrowing may increase your regular repayments. Changes in interest rates can also affect repayments on variable-rate loans.
Falling property values
Home equity is affected by your property's market value. If property prices fall, your equity may decrease and your loan-to-value ratio (LTV) may increase.
Your home is used as security
Borrowing against home equity generally involves debt secured by your property. If you are unable to meet your loan obligations, there can be serious consequences, including the potential loss of your home.
Less equity available later
Using some of your equity now means you may have less available if you later want to sell, refinance, move home or access funds for another purpose.

Before Borrowing Against Your Equity

Consider the additional repayments, interest, fees and loan term rather than looking only at how much equity you have available.

Being able to access equity does not necessarily mean borrowing against it is suitable for your circumstances.

⚠️ Important Information

This home equity calculator provides a general estimate only based on the information you enter. It does not determine how much you can borrow or whether you qualify for a particular loan.

Actual property values, available equity, borrowing limits, interest rates, fees and lending requirements vary between lenders and locations.

Consider checking your figures with your lender or an appropriately qualified financial professional before making borrowing decisions.

What Affects Your Home Equity?

Your home equity can change over time because both your property value and your mortgage balance can change.

Several factors can increase or decrease the amount of equity you have:

Property value changes
If your property's market value increases while your mortgage balance stays the same or decreases, your equity generally increases. If property values fall, your equity may decrease.
Mortgage repayments
As you repay the principal portion of your mortgage, your outstanding loan balance decreases and your home equity generally grows.
Extra mortgage repayments
Making additional repayments toward the principal can reduce your mortgage balance faster, potentially helping you build equity sooner.
Additional borrowing
Refinancing, increasing your mortgage or borrowing against your existing equity can increase the amount secured against your property and reduce your remaining equity.
Renovations and property improvements
Some improvements may increase your property's market value and therefore your equity. However, the increase in value is not guaranteed to equal or exceed the amount spent.
Property market conditions
Local supply and demand, economic conditions, interest rates and buyer activity can influence property prices and therefore the value of your equity.

Your Equity Can Move in Both Directions

For example, if your mortgage balance falls but your property value falls by a larger amount, your total home equity could still decrease.

Likewise, if your property rises in value while you're also paying down your mortgage, your equity may grow from both sides of the calculation.

Home Equity = Property Value − Remaining Mortgage Balance

Frequently Asked Questions

1. What is home equity?

Home equity is the difference between your property's current market value and the amount you still owe on your mortgage. For example, if your property is worth $800,000 and your mortgage balance is $450,000, your estimated home equity is $350,000.

2. How do I calculate my home equity?

You can calculate home equity using this formula:

Home Equity = Current Property Value − Remaining Mortgage Balance

A home equity calculator does this automatically and can also show your equity percentage and loan-to-value ratio (LTV).

3. What is a good amount of equity to have in your home?

There is no single amount of home equity that is considered good for everyone. Generally, having more equity means you own a larger portion of your property and have a lower loan-to-value ratio. What matters will depend on your mortgage, property value and financial goals.

4. What is loan-to-value ratio (LTV)?

Loan-to-value ratio, or LTV, compares your outstanding mortgage with your property's value.

For example, a $450,000 mortgage on an $800,000 property has an LTV of approximately 56.3%.

LTV = Mortgage Balance ÷ Property Value × 100

5. What is the difference between home equity and usable equity?

Total home equity is the difference between your property's value and your mortgage balance. Usable equity refers to the portion you may potentially be able to borrow against while remaining within a lender's LTV requirements. Your actual borrowing capacity may be lower and depends on lender approval.

6. Can home equity decrease?

Yes. Your home equity can decrease if your property's market value falls or if you increase the amount borrowed against your property. Equity can also increase as you repay your mortgage or if your property's value rises.

7. Can I borrow against my home equity?

Potentially. Depending on the lender and your circumstances, you may be able to borrow against some of your available equity through refinancing or other secured lending options. Approval can depend on factors such as your income, expenses, existing debts, credit profile, property valuation and ability to make the repayments.

8. Is a home equity calculator accurate?

A home equity calculator provides an estimate based on the property value and mortgage balance you enter. Your actual equity may differ because property values change, and a lender may use its own valuation when assessing your property. The calculator should therefore be used as a starting point rather than a lending or property valuation.