# How much home equity do I have?

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.

- Page: https://www.acalculator.org/finance/home-equity-calculator
- JSON spec: https://www.acalculator.org/finance/home-equity-calculator.json
- Version: fcf796b0aced

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| value | Home value | What your home is worth today, for example from an appraisal or recent sales nearby. |
| owed | Mortgage balance | The principal you still owe on your mortgage. |
| other | Other loans on the home | Balances of a second mortgage, home equity loan, HELOC, or other lien on the home. |
| limit | Lender’s limit (combined loan-to-value) | The most all loans on the home may add up to, as a percent of its value. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| equity | Your home equity | The home value minus all the loans secured by it. |
| equityPct | Equity percent | Home equity as a percent of the home value. |
| debt | Loans on the home | The mortgage plus the other loans. |
| cltv | Combined loan-to-value | All the loans on the home as a percent of its value. |
| borrow | You could borrow up to | The home value × the lender’s limit, minus the loans on the home, or 0. |
| keep | Equity left after borrowing that | The equity the lender’s limit keeps in the home. |

## 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.

## Worked examples

1. value = $450,000.00, owed = $250,000.00, other = $0.00, limit = 80% gives equity = $200,000.00, equityPct = 44.444444%, cltv = 55.555556%, borrow = $110,000.00, keep = $90,000.00. Source: CFPB, What is a home equity loan? (equity is what the home is worth minus what you owe).
2. value = $320,000.00, owed = $240,000.00, other = $30,000.00, limit = 85% gives equity = $50,000.00, equityPct = 15.625%, cltv = 84.375%, borrow = $2,000.00.
3. value = $280,000.00, owed = $300,000.00, other = $0.00, limit = 80% gives equity = -$20,000.00, equityPct = -7.142857%, borrow = $0.00.

## FAQ

### 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.

## 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/