How much home equity do I have?
See how much equity you have in your home, as dollars and a percent, and how much of it a lender's limit would let you borrow.
- Your home equity
- $200,000.00
A $450,000.00 home with $250,000.00 of loans on it has $200,000.00 of equity, 44.4% of its value.
20% equity or more
- Negative equity: you owe more than the home is worth
- Under 20% equity
- 20% equity or more
- Equity percent
- 44.4%
- Loans on the home
- $250,000.00
- Combined loan-to-value
- 55.6%
- You could borrow up to
- $110,000.00
- Equity left after borrowing that
- $90,000.00
Your home equity: $200,000.00. A $450,000.00 home with $250,000.00 of loans on it has $200,000.00 of equity, 44.4% of its value.
How much of your home do you own?
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Computes home equity (the home value minus the loans secured by it) in dollars and as a percent, the combined loan-to-value, and how much a lender’s limit would let you borrow.
Example with the default inputs (Home value $450,000.00, Mortgage balance $250,000.00, Other loans on the home $0.00, Lender’s limit (combined loan-to-value) 80%): A $450,000.00 home with $250,000.00 of loans on it has $200,000.00 of equity, 44.4% of its value.
Method: equity = home value − loans on the home; equity percent = equity ÷ value × 100; you could borrow value × limit − loans.
- The home value is your estimate; a lender uses an appraisal.
- Every loan secured by the home counts: first mortgage, second mortgage, home equity loan, and HELOC balances.
- Selling costs are not subtracted; see the home sale proceeds calculator for what you would net from a sale.
Worked examples
Each example is checked against the calculator on every build.
- Home value $450,000.00, Mortgage balance $250,000.00, Other loans on the home $0.00, Lender’s limit (combined loan-to-value) 80% gives Your home equity $200,000.00, Equity percent 44.444444%, Combined loan-to-value 55.555556%, You could borrow up to $110,000.00, Equity left after borrowing that $90,000.00.Source: CFPB, What is a home equity loan? (equity is what the home is worth minus what you owe)
- Home value $320,000.00, Mortgage balance $240,000.00, Other loans on the home $30,000.00, Lender’s limit (combined loan-to-value) 85% gives Your home equity $50,000.00, Equity percent 15.625%, Combined loan-to-value 84.375%, You could borrow up to $2,000.00.
- Home value $280,000.00, Mortgage balance $300,000.00, Other loans on the home $0.00, Lender’s limit (combined loan-to-value) 80% gives Your home equity -$20,000.00, Equity percent -7.142857%, You could borrow up to $0.00.
How it works
Write V for the home value, M for the mortgage balance, O for the other loans secured by the home, and c for the lender's combined loan-to-value limit in percent.
- Loans on the home = M + O.
- Equity = V − (M + O). It is negative when you owe more than the home is worth.
- Equity percent = equity ÷ V × 100, with a verdict: below 0% is negative equity, 0% to under 20% is under 20% equity, and 20% or more is 20% equity or more.
- Combined loan-to-value = (M + O) ÷ V × 100, which is 100 minus the equity percent.
- You could borrow up to = V × c ÷ 100 − (M + O), or 0 if that is below 0.
- Equity left after borrowing that = equity − the amount in step 5.
Assumptions
- The home value is your estimate. A lender uses an appraisal, which may differ.
- Every loan secured by the home counts, including a second mortgage, home equity loan, or HELOC balance.
- The amount you could borrow shows only the lender's loan-to-value limit; lenders also check your income, debts, and credit. The default limit is an example.
- Selling costs are not subtracted; what you would net from a sale is lower.
Worked examples by hand
A $450,000 home with a $250,000 mortgage and an 80% limit. Equity = 450,000 − 250,000 = $200,000, which is 200,000 ÷ 450,000 = 44.4%. The combined loan-to-value is 55.6%. You could borrow up to 0.80 × 450,000 − 250,000 = $110,000, which leaves $90,000 of equity in the home.
A $320,000 home with a $240,000 mortgage, a $30,000 HELOC balance, and an 85% limit. Loans = $270,000, so equity = $50,000, which is 15.625% (under 20%). The combined loan-to-value is 84.375%, and you could borrow up to 0.85 × 320,000 − 270,000 = $2,000.
A $280,000 home with a $300,000 mortgage. Equity = 280,000 − 300,000 = −$20,000, which is −7.1%: negative equity. At an 80% limit you could borrow $0.
Other questions people ask
How do I calculate home equity?
Subtract everything you owe on the home from what it is worth. A $450,000 home with a $250,000 mortgage has $200,000 of equity, which is 44.4% of its value.
How much equity can I borrow?
Lenders usually let all loans on the home add up to a percent of its value, often 80% to 85%. At 80%, the $450,000 home above supports 450,000 × 0.80 = $360,000 of loans, so you could borrow up to 360,000 − 250,000 = $110,000. The rest of the equity stays in the home.
What is combined loan-to-value (CLTV)?
All the loans secured by the home added together, as a percent of its value. It is 100% minus your equity percent. Lenders use it to decide how much more you can borrow.
What is negative equity?
When you owe more than the home is worth, your equity is below zero and you are "underwater". You usually cannot borrow against the home, and selling may need extra cash to pay off the loan.
How can I build equity faster?
Each mortgage payment lowers the balance, and extra payments toward principal lower it faster. A rise in the home's value also adds equity, and home improvements can help. A fall in value takes it away.
Does equity count toward removing PMI?
By law your servicer must end PMI when the balance is scheduled to reach 78% of the original value, and you can ask to cancel it at 80%. That is 20% to 22% equity measured against the price you paid; some lenders accept a new appraisal too.