Home Equity Calculator
Your home equity is your most valuable financial asset. Calculate how much you have now and see how it grows through appreciation and mortgage paydown over the coming years.
What you'll need
- Current home value (Zillow, appraisal, or recent comps)
- Remaining mortgage balance
- Current mortgage interest rate and months remaining
- Expected annual appreciation rate
- How many years ahead to project
What you'll get
Current equity
Your equity today
Future equity projection
At your chosen year
Appreciation vs paydown
Where growth comes from
Usable equity (85% CLTV)
Available for HELOC or cash-out
How It Works
Enter home value
Use your Zestimate, recent appraisal, or comparable sales for current market value.
Enter mortgage balance
Find your current payoff balance on your mortgage statement.
See borrowable equity
Most lenders allow 80–90% combined LTV — your equity minus that buffer is accessible.
Borrowable Equity by Home Value
| Home Value | Balance | Equity | Borrowable (80% CLTV) |
|---|---|---|---|
| $300,000 | $200,000 | $100,000 | $40,000 |
| $400,000 | $250,000 | $150,000 | $70,000 |
| $500,000 | $300,000 | $200,000 | $100,000 |
| $600,000 | $350,000 | $250,000 | $130,000 |
Borrowable equity = (Home value × 80%) − mortgage balance.
Frequently asked questions
How is home equity calculated?
Home equity is your home's current market value minus your remaining mortgage balance. For example, if your home is worth $400,000 and you owe $250,000, you have $150,000 in equity (37.5%). Equity grows as your home appreciates and as you pay down your mortgage.
How much equity can I borrow against?
Most lenders allow you to borrow up to 85% of your home's value minus what you owe (the combined loan-to-value, or CLTV). So if your home is worth $400,000, you could borrow up to $340,000 total (85%) minus your current balance. This difference is your accessible equity.
Does making extra mortgage payments build equity faster?
Yes — extra payments go directly to principal, reducing your balance and increasing equity. Early in your mortgage when the balance is high, even small extra payments meaningfully reduce future interest and build equity faster. You also avoid paying interest on those reduced balances in future months.
How does home appreciation affect equity?
Home appreciation increases your equity dollar-for-dollar on the full home value, not just your down payment — this is leverage at work. A home you bought for $400,000 with 10% down ($40,000) that appreciates 5% gains $20,000 in equity on a $40,000 investment — a 50% return on cash invested. Over longer periods, appreciation typically drives more equity growth than mortgage paydown.
Can I lose equity in my home?
Yes — if your home's market value drops below your mortgage balance, you have negative equity (underwater). This happened broadly during the 2008–2012 housing correction. You can also lose equity by taking out a second mortgage or HELOC. Maintaining a reasonable LTV (below 80%) provides a buffer against market downturns.
Ready to see your equity?
Calculate My Home Equity →