How to calculate home equity
Equity = home value − mortgage balance. Borrowable = (home value × max LTV%) − balance
Worked example. Your home equity: $160,000.
Example inputs — Current home value: $420,000; Mortgage balance remaining: $260,000; Max loan-to-value lender allows (%): 80. Starting values are illustrative.
From George Guju, founder of Calculyn · Educational calculator guidance, not professional advice.
How it works
Equity is your home's value minus what you still owe. Lenders usually let you borrow up to 80% of the home's value in total (mortgage plus equity loan), so tappable equity is 80% of value minus your balance.
Assumptions & limitations
- Results are rounded for display.
Formula and assumptions reviewed October 2026 by the Calculyn team. How we build our calculators
Frequently asked questions
How do I increase my equity?
Pay down the mortgage, make extra principal payments, or wait for the home to appreciate.
HELOC or home equity loan?
A HELOC is a revolving line you draw as needed; a home equity loan is a lump sum with fixed payments.