Home Equity Calculator
Calculate your home equity based on current home value, remaining mortgage balance, and appreciation over time. Estimate borrowing power for HELOC or home equity loan.
How to Use This Calculator
- Enter your current home value (estimated market value)
- Add your remaining mortgage balance (principal owed)
- Input your mortgage details (rate, payment, years remaining)
- Set appreciation rate for future projections
- Add any additional liens (HELOC, 2nd mortgage, etc.)
- Click Calculate Equity to see your home equity analysis
🏠 Property Value
💳 Primary Mortgage
🔗 Additional Liens (Optional)
Include any additional loans secured by your home such as HELOC, second mortgage, or home equity loans.
🎯 Borrowing Preferences
🏦 Understanding Home Equity
Home equity is the difference between your home's market value and what you owe on it. It represents your ownership stake in the property and can be a powerful financial tool when used wisely.
- Equity = Home Value - Total Liens
- LTV (Loan-to-Value) = Total Liens ÷ Home Value × 100
💰 Ways to Build Equity
- Pay down mortgage: Each payment reduces principal and builds equity
- Home appreciation: Market value increases over time
- Home improvements: Strategic renovations can boost value
- Extra payments: Additional principal payments accelerate equity building
- Shorter loan term: 15-year mortgages build equity faster than 30-year
🔑 HELOC vs. Home Equity Loan
HELOC (Home Equity Line of Credit):
- Revolving credit line - borrow as needed
- Variable interest rate (typically)
- Draw period (usually 10 years) + repayment period
- Best for: Ongoing expenses, flexibility needed
Home Equity Loan:
- Lump sum disbursement
- Fixed interest rate and payment
- Set repayment term (5-30 years)
- Best for: One-time expenses, predictable payments
⚠️ Important Considerations
- Your home is collateral: Failure to repay can result in foreclosure
- Closing costs: Expect 2-5% in fees for equity loans
- Market fluctuations: Home values can decrease, reducing equity
- Tax implications: Interest may be deductible for home improvements only
- Future flexibility: High LTV limits refinancing options
🔗 Save & Share Your Calculation
Your equity calculation is automatically saved in the URL. You can bookmark this page to track your equity over time, or use the Share button to send it to a financial advisor. All values will be restored automatically when you return.