How to calculate your home equity
Subtract every loan secured by the home from what the home is worth today. The CFPB defines equity as the amount your property is currently worth, minus the amount of any existing mortgage on it.[1] Count a HELOC balance, a second mortgage and any lien as well as the first mortgage.
Home equity = home value − mortgage balance − other loans$400,000 − $220,000 − $0 = $180,000 (45.0% of the value)
Two numbers decide the answer, and only one is exact. Your balance is on your mortgage statement or in the servicer's online account (the payoff amount adds a few days of interest). The value is an estimate until a lender orders an appraisal, so try the calculator with a lower value too. The LTV calculator turns the same two numbers into loan-to-value, which is how a lender reads them.
| Mortgage balance | Equity | Equity % | Borrowable at 85% CLTV |
|---|---|---|---|
| $100,000 | $300,000 | 75% | $240,000 |
| $160,000 | $240,000 | 60% | $180,000 |
| $220,000 | $180,000 | 45% | $120,000 |
| $280,000 | $120,000 | 30% | $60,000 |
| $320,000 | $80,000 | 20% | $20,000 |
| $360,000 | $40,000 | 10% | $0 |
How much equity can I borrow?
Less than all of it. Lenders cap the combined loan-to-value (CLTV), all loans on the home divided by its value, so part of your equity always stays in the home. In Fannie Mae's guide, CLTV adds the first mortgage, the drawn balance of any HELOC and every other subordinate loan, then divides by the property value; a separate ratio, HCLTV, counts a HELOC's full credit line instead of only the drawn part.[4][5] Each lender sets its own maximum for home equity loans and HELOCs.
Borrowable = home value × CLTV limit − all loans$400,000 × 85% − $220,000 = $120,000
| Lender's CLTV limit | You could borrow | Equity you keep |
|---|---|---|
| 80% | $100,000 | $80,000 |
| 85% | $120,000 | $60,000 |
| 90% | $140,000 | $40,000 |
The equity you keep is your cushion if prices fall: with $60,000 left after borrowing the maximum, the home could lose 15% of its value before you owe more than it is worth. The HELOC LTV calculator shows the same limits for a credit line, including what it costs to go to 90% or more.
Home equity loan calculator: the payment on what you borrow
A home equity loan is a lump sum at a fixed rate, repaid in equal monthly payments, so the payment is the ordinary amortization formula.[2] At 8.25% for 15 years, borrowing the full $120,000 costs $1,164.17 a month and $89,550 in interest over the term.
| Amount | 10 years | 15 years | 20 years |
|---|---|---|---|
| $25,000 | $306.63 | $242.54 | $213.02 |
| $50,000 | $613.26 | $485.07 | $426.03 |
| $75,000 | $919.89 | $727.61 | $639.05 |
| $100,000 | $1,226.53 | $970.14 | $852.07 |
A HELOC works differently: you draw as you need, the rate usually floats with prime and the early payments are often interest only.[3] The HELOC payment calculator shows both phases of a line, and home equity loan vs HELOC puts the two side by side. Interest on either is deductible only if the money buys, builds or substantially improves the home that secures the loan.[8]
How your equity grows over time
Equity grows two ways: each mortgage payment lowers the balance, and the home's value may rise. In this example, at 6.00% with 25 years left and prices rising 3.5% a year, equity goes from $180,000 today to $277,224 in 5 years and $396,265 in 10.
| Home prices | Value in 10 years | Equity in 10 years | Equity % |
|---|---|---|---|
| Rise 3.5% a year | $564,240 | $396,265 | 70% |
| Stay flat | $400,000 | $232,026 | 58% |
| Fall 5% a year | $239,495 | $71,520 | 30% |
Payments alone add $52,026 of equity over 10 years here, whatever prices do. Price changes can add or remove far more. FHFA's purchase-only index rose 4.28% a year on average from 1991 to August 2026 and 3.54% a year over the last 20 years, but fell 21.3% from April 2007 to May 2011.[6] Extra principal payments speed up the first part; the extra payment calculator shows by how much.
Your home is the collateralA home equity loan or HELOC is secured by your home: if you cannot repay, you could lose it. Borrowing turns equity back into debt, and Americans owed $481 billion on HELOCs at the end of September 2026.[7]
Frequently asked questions
How much equity do I have in my home?
Your home's current value minus every loan secured by it. A $400,000 home with $220,000 owed has $180,000 of equity, 45% of the value.[1]
How much equity can I take out of my home?
The value times your lender's CLTV limit, minus what you owe. At 85% on a $400,000 home with $220,000 owed, that is $120,000; at 80% it is $100,000.[4]
What is the monthly payment on a $50,000 home equity loan?
At 8.25%: $613.26 over 10 years, $485.07 over 15 and $426.03 over 20. Use your own quote in the calculator.
Does a HELOC count against my equity?
How fast does home equity build?
Slowly at first: early mortgage payments are mostly interest. In this example, payments add $22,149 of equity in 5 years with flat prices; price growth of 3.5% a year adds $75,075 more.
Sources
- What is a home equity loan?
- What is the difference between a home equity loan and a home equity line of credit (HELOC)?
- What You Should Know About Home Equity Lines of Credit (HELOC)
- B2-1.2-02, Combined Loan-to-Value (CLTV) Ratios (Selling Guide)
- B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios (Selling Guide)
- House Price Index, purchase-only, United States, monthly (HPI master data file)
- Quarterly Report on Household Debt and Credit, 2026:Q3
- Publication 936 (2025), Home Mortgage Interest Deduction