Home Equity Calculator

The default 80% combined LTV is an assumption, not an offer of a home-equity loan or HELOC.

Published by the Mortgage Guide editorial team. Rate assumptions and content updated October 2026. This page is educational. It is not a loan offer, approval, or personalized financial advice.

Borrowing room uses the maximum combined loan-to-value you enter. 80% is a planning assumption, not a lender offer.

Home value

Mortgage balance

Maximum combined LTV assumption

$200,000.00 equity

40.0% of the home value

Current LTV 60.0%

Estimated room under a 80% combined LTV: $100,000.00

How this calculator works

Equity is the home value minus the mortgage balance.
Equity percent is equity divided by the home value.
Borrowing room is the value times the LTV you enter, minus the current balance.
If that room is negative, the estimate shows zero.

Value and a lender appraisal can differ

The value you type may be a sale price, an estimate, or a guess. A lender uses an appraisal or another valuation, and it can be lower.

Available room is not cash you can withdraw. Fees, credit, and the lender's maximum LTV still apply.

Sources

CFPB: Owning a home

Common questions

Is 80% the most I can borrow?

It is the starting assumption on this page. Change it to match a limit you were actually quoted.

Does equity include a second mortgage?

Only if you include that balance in the mortgage-balance field. Otherwise the equity figure is too high.

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