{
  "id": "home-equity",
  "version": "fcf796b0aced",
  "status": "published",
  "name": "Home Equity Calculator",
  "question": "How much home equity do I have?",
  "summary": "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.",
  "category": "finance",
  "subcategory": "loans",
  "url": "https://www.acalculator.org/finance/home-equity-calculator",
  "markdown": "https://www.acalculator.org/finance/home-equity-calculator.md",
  "kind": "function",
  "method": "equity = home value − loans on the home; equity percent = equity ÷ value × 100; you could borrow value × limit − loans.",
  "assumptions": [
    "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."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "value": {
        "title": "Home value",
        "description": "What your home is worth today, for example from an appraisal or recent sales nearby.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1000,
        "maximum": 1000000000
      },
      "owed": {
        "title": "Mortgage balance",
        "description": "The principal you still owe on your mortgage.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000
      },
      "other": {
        "title": "Other loans on the home",
        "description": "Balances of a second mortgage, home equity loan, HELOC, or other lien on the home.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000
      },
      "limit": {
        "title": "Lender’s limit (combined loan-to-value)",
        "description": "The most all loans on the home may add up to, as a percent of its value.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 1,
        "maximum": 100
      }
    }
  },
  "outputs": {
    "equity": {
      "label": "Your home equity",
      "description": "The home value minus all the loans secured by it.",
      "format": "money"
    },
    "equityPct": {
      "label": "Equity percent",
      "description": "Home equity as a percent of the home value.",
      "format": "percent"
    },
    "debt": {
      "label": "Loans on the home",
      "description": "The mortgage plus the other loans.",
      "format": "money"
    },
    "cltv": {
      "label": "Combined loan-to-value",
      "description": "All the loans on the home as a percent of its value.",
      "format": "percent"
    },
    "borrow": {
      "label": "You could borrow up to",
      "description": "The home value × the lender’s limit, minus the loans on the home, or 0.",
      "format": "money"
    },
    "keep": {
      "label": "Equity left after borrowing that",
      "description": "The equity the lender’s limit keeps in the home.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "value": 450000,
      "owed": 250000,
      "other": 0,
      "limit": 80
    },
    "outputs": {
      "equity": 200000,
      "equityPct": 44.44444444444444,
      "debt": 250000,
      "cltv": 55.55555555555556,
      "borrow": 110000,
      "keep": 90000
    },
    "text": "A $450,000.00 home with $250,000.00 of loans on it has $200,000.00 of equity, 44.4% of its value."
  },
  "examples": [
    {
      "given": {
        "value": 450000,
        "owed": 250000,
        "other": 0,
        "limit": 80
      },
      "expect": {
        "equity": 200000,
        "equityPct": 44.44444444444444,
        "cltv": 55.55555555555556,
        "borrow": 110000,
        "keep": 90000
      },
      "source": "CFPB, What is a home equity loan? (equity is what the home is worth minus what you owe); hand calculation in content.mdx: 450,000 − 250,000 = 200,000; 0.80 × 450,000 − 250,000 = 110,000"
    },
    {
      "given": {
        "value": 320000,
        "owed": 240000,
        "other": 30000,
        "limit": 85
      },
      "expect": {
        "equity": 50000,
        "equityPct": 15.625,
        "cltv": 84.375,
        "borrow": 2000
      },
      "source": "hand calculation in content.mdx: 320,000 − 270,000 = 50,000; 0.85 × 320,000 − 270,000 = 2,000"
    },
    {
      "given": {
        "value": 280000,
        "owed": 300000,
        "other": 0,
        "limit": 80
      },
      "expect": {
        "equity": -20000,
        "equityPct": -7.142857142857142,
        "borrow": 0
      },
      "source": "hand calculation in content.mdx: 280,000 − 300,000 = −20,000 (negative equity), so nothing can be borrowed"
    }
  ],
  "sources": [
    "Consumer Financial Protection Bureau, What is a home equity loan? https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-loan-en-106/",
    "Consumer Financial Protection Bureau, What you should know about home equity lines of credit. https://files.consumerfinance.gov/f/documents/cfpb_heloc-brochure_print.pdf",
    "Federal Trade Commission, Home Equity Loans and Home Equity Lines of Credit. https://consumer.ftc.gov/articles/home-equity-loans-and-home-equity-lines-credit",
    "Consumer Financial Protection Bureau, When can I remove private mortgage insurance (PMI) from my loan? https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/"
  ],
  "related": [
    "home-equity-loan",
    "heloc",
    "cash-out-refinance",
    "home-sale-proceeds"
  ],
  "changelog": []
}