Home Equity Calculator
Current equity · LTV ratio · HELOC availability
Get a free estimate from Zillow or Realtor.com
For equity growth analysis
Most lenders: 75–85%
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Current Equity
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Loan-to-Value
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Available HELOC
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Equity %
About This Calculator
The Home Equity Calculator shows how much of your home you actually own — and how much you could potentially access through a HELOC (Home Equity Line of Credit) or cash-out refinance.
Home Equity = Current Value - Remaining Mortgage Balance. As you pay down your mortgage and your home appreciates, equity grows. Most lenders allow you to access up to 75–85% of your home's value minus what you owe (the combined loan-to-value, or CLTV).
For real estate investors, home equity is a powerful tool. Using a HELOC as a down payment for an investment property allows you to leverage existing equity to build a portfolio — a strategy used by many experienced investors.
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Frequently Asked Questions
How is home equity calculated?▼
Home Equity = Current Market Value - Remaining Mortgage Balance. Example: $450,000 home value - $280,000 mortgage balance = $170,000 equity. Your equity percentage = $170,000 ÷ $450,000 = 37.8%. Equity grows as you pay down the mortgage and as property values increase.
How much equity do I need to get a HELOC?▼
Most lenders require at least 15–20% equity (LTV below 80–85%). The more equity you have, the higher your credit limit. Lenders also consider credit score (typically 620+ minimum, 700+ for best rates), income, and debt-to-income ratio.
What's the difference between a HELOC and cash-out refinance?▼
HELOC: a revolving credit line using your home as collateral — you draw as needed and pay interest only on what you use. Cash-out refinance: replace your existing mortgage with a larger one and receive the difference in cash. HELOC is more flexible; cash-out refi may offer lower rates.
Can I use home equity to buy an investment property?▼
Yes — this is a common strategy. Use a HELOC or cash-out refinance to fund the down payment on a rental property. If the rental income exceeds the HELOC payment plus the new mortgage, you've effectively used leverage to create cash flow. Always run the numbers carefully.
How does property value appreciation affect equity?▼
Appreciation directly increases equity. A $400,000 home appreciating at 4%/year gains $16,000 in equity from appreciation alone in year one. Over 5 years at 4% annual appreciation: $400,000 → $486,661 — adding $86,661 in equity from appreciation alone, on top of mortgage paydown.
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