Home Equity Calculator

Find out your home equity and how much you could borrow with a HELOC or home equity loan.

📐 Home Equity
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Optional: HELOC Payment Estimator
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Your Current Home Equity
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LTV Ratio
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Understanding Home Equity

Home equity is the difference between your home's current market value and what you still owe on your mortgage. It represents the portion of your home you truly "own." As you pay down your mortgage — and as home values appreciate — your equity grows.

How to Borrow Against Your Equity

There are two main ways to tap home equity:

  • Home Equity Line of Credit (HELOC): Works like a credit card — you borrow what you need up to your limit during a draw period (typically 10 years), then repay over a repayment period. Rates are usually variable.
  • Home Equity Loan: A lump-sum loan at a fixed rate, repaid over 5–30 years. Best if you know exactly how much you need and want predictable payments.

What is LTV (Loan-to-Value)?

LTV = (total debt secured by home) ÷ (home value). Most lenders won't let your Combined LTV (CLTV) exceed 80–85%. Some credit unions offer up to 90%. The lower your CLTV, the better your rate.

Smart Uses of Home Equity

  • Home renovations (can add value back to the home)
  • High-interest debt consolidation (if your HELOC rate is lower)
  • College tuition or major purchases
  • Emergency fund backup (draw only when needed)
Important: Your home is collateral. If you can't repay a HELOC or home equity loan, you risk foreclosure. Only borrow what you can comfortably repay.

FAQs

Use free online tools like Zillow's Zestimate or Redfin's estimate as a starting point. For accuracy, look at recent sales of comparable homes (comps) in your neighborhood, or pay for a professional appraisal (typically $300–$600). Lenders will require an appraisal for any HELOC or home equity loan.
Most lenders require a minimum 620 credit score for a HELOC, though you'll get better rates with 700+. You'll also need at least 15–20% equity in your home and a DTI ratio under 43%.
As of the 2017 Tax Cuts and Jobs Act, HELOC interest is only deductible if the funds are used to "buy, build, or substantially improve" the home securing the loan. Interest used for other purposes (debt consolidation, personal expenses) is no longer deductible. Consult a tax professional for your situation.
A HELOC adds a second loan while keeping your existing mortgage intact. A cash-out refinance replaces your entire mortgage with a new, larger one and gives you the difference in cash. Cash-out refi may make sense if current rates are lower than your existing mortgage rate. A HELOC is better when rates on your existing mortgage are low and you want flexibility.

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