Home Equity Calculator
Work out your home equity, your loan-to-value percentage, and how much you could tap with a HELOC at your lender's combined LTV cap.
Home equity & HELOC estimator
Equity is what your home is worth minus what you still owe. Lenders let you borrow against it up to a combined loan-to-value cap — usually around 85%. See your equity and how much you could tap.
Your home equity
$200,000
40.0% of the home's value
Available to borrow
$125,000
HELOC room at your chosen LTV cap
Current loan-to-value
60.0%
Mortgage balance ÷ home value
Max total borrowing
$425,000
Combined debt allowed against the home
How it works
Equity is the part of your home you actually own — its current value minus whatever you still owe on the mortgage. As you pay down the loan or the home appreciates, that gap widens and your equity grows.
Lenders let you borrow against equity through a HELOC or home equity loan, but they cap the total debt at a combined loan-to-value ratio, often around 85%. This tool takes that cap, figures the maximum total borrowing it allows, subtracts your existing mortgage, and shows what's left to tap.
On a $500,000 home with a $300,000 mortgage, your equity is $200,000, a 60% loan-to-value. At an 85% combined LTV cap, total debt could reach $425,000, so after the existing $300,000 you'd have about $125,000 of HELOC room. Change any input and the numbers follow.
Frequently asked questions
What's the difference between equity and available HELOC?
Equity is everything you own outright — value minus what you owe. A HELOC only lets you borrow up to a combined LTV cap, so the available amount is smaller. Lenders always leave a cushion of equity untouched.
What combined LTV should I use?
Most lenders cap combined loan-to-value between 80% and 90%, with 85% being common. A stronger credit profile can push the cap higher. Enter your lender's number to see the real borrowing room rather than a rule of thumb.
Does a HELOC reduce my equity?
Drawing on a HELOC doesn't change your equity on paper — it adds a second loan against the home. But it does increase what you owe, so if you had to sell, more of the sale price would go to lenders and less to you.