How to use this calculator
Enter your best estimate of your home's current market value. Check recent sales of similar homes in your neighborhood for the most accurate figure. Then enter your remaining mortgage balance (found on your monthly statement or lender portal).
If you have any additional liens such as a HELOC, second mortgage, or home equity loan, add those amounts as well. The calculator shows your total equity, equity percentage, LTV ratio, and how much a lender would likely let you borrow.
Understanding home equity
Home equity is the difference between what your home is worth and what you owe on it. It represents your ownership stake in the property. Equity grows in two ways: paying down your mortgage principal and appreciation in your home's market value.
The Loan to Value (LTV) ratio is the inverse of your equity percentage. An 80% LTV means you have 20% equity. Lenders use LTV to determine risk, set rates, and decide whether you need private mortgage insurance (PMI).
Frequently asked questions
What is home equity?
Home equity is the portion of your home that you truly own. It equals the market value minus all debts secured by the property (mortgage, HELOC, etc.).
When can I remove PMI?
You can request PMI removal when your equity reaches 20% (LTV of 80% or less). Under the Homeowners Protection Act, PMI must automatically terminate at 22% equity based on the original value or amortization schedule.
How much can I borrow with a HELOC?
Most lenders allow you to borrow up to 80% of your home value minus your existing mortgage. Some go to 85% or 90% for borrowers with excellent credit. The calculator shows both 80% and 85% scenarios.
How do I find my home's current value?
Look at recent comparable sales within a half mile. Online estimates from Zillow or Redfin provide a starting point but can be off by 5% to 15%. For the most accurate number, get a professional appraisal.
Is negative equity possible?
Yes. If your home value drops below what you owe, you have negative equity (also called being underwater or upside down). This happened to many homeowners during the 2008 housing crisis.