Home Equity Calculator

Calculate your available home equity, current LTV, and estimated HELOC borrowing limit.

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Use a recent appraisal or estimate from Zillow/Realtor.
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Check your most recent statement.
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Enter 0 if none.
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Most lenders allow 80-90% CLTV for HELOCs.

Results

Total Home Equity
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Current LTV
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loan-to-value ratio
Estimated HELOC Limit
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Equity Percentage
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of current home value
To Reach 80% LTV
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additional equity needed for best rates
DebtEquity
Debt: — Equity: —

What Is Home Equity?

Home equity is the portion of your home's value that you own outright — the difference between what the home is worth and what you owe on it. It builds in two ways: through mortgage payments that reduce your principal balance, and through home value appreciation over time.

Home Equity = Current Home Value - Total Outstanding Liens

How a HELOC Works

A Home Equity Line of Credit (HELOC) lets you borrow against your equity, up to a lender-set limit based on your Combined Loan-to-Value ratio (CLTV). Most lenders allow a maximum CLTV of 80-90%, meaning your total debt (first mortgage plus HELOC) cannot exceed that percentage of your home's value.

Max HELOC = (Home Value x Max CLTV%) - Existing Mortgage Balance

HELOCs typically have variable interest rates and a draw period (usually 10 years) followed by a repayment period. They are commonly used for home improvements, debt consolidation, or large expenses where flexibility is needed.

HELOC vs. Cash-Out Refinance

Both let you access home equity, but they work differently. A HELOC is a revolving credit line — you draw what you need and pay interest only on what you use. A cash-out refinance replaces your entire mortgage with a new, larger loan and gives you the difference in cash. Cash-out refis make sense when refinancing to a lower rate anyway. HELOCs are better when you need flexible access to funds over time without resetting your primary mortgage.

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