Home Equity Calculator
Equity is the home value minus the mortgage balance. The 80% line is a reference, not an offer to borrow.
Use it when you know a value and a mortgage balance and want equity, not a loan offer.
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How we calculated this
Equity is the home value minus the mortgage balance, and it cannot show below zero. The 80% line is a common reference for how much value is left above a standard conventional loan-to-value. It is not an offer of credit.
What does this mean?
About $170,000 of this value is equity. $80,000 of that sits above an 80% loan-to-value.
Your assumptions
Edit assumptions- Home value
- $450,000
- Mortgage balance
- $280,000
Equity here is value minus the mortgage balance you enter. It is not an appraisal or a credit offer.
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Paste this iframe to show the calculator on another page. Taller results scroll inside the frame.
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How the estimate is calculated
Equity cannot display below zero. If the balance is higher than the value, the result says so.
The amount above an 80% loan is value times 0.8, minus the balance, and not below zero.
Equity
Equity = max(0, home value − mortgage balance). Loan-to-value = balance ÷ home value.
Example
- Use a value you are willing to plan with, such as a recent appraisal or a conservative estimate.
- Use the payoff balance, not the original loan.
- Read equity and the 80% line separately.
With the numbers filled in on this page, the estimate is $170,000.
What changes the result
Value
A hopeful value inflates equity. The calculator does not check it.
Other liens
A second mortgage or a lien belongs in the balance if you want equity after all debt on the home.
Borrowing
Lenders do not automatically lend the full equity figure.
Questions
What does the 80% line mean?
It is how much value is left above a loan equal to 80% of the home. It is a common reference, not a loan approval.
Can equity be negative?
The situation can be. This page shows $0 and a note when the balance is higher than the value.
Should I include a HELOC?
Yes, if you want equity after that balance too. Add it into the mortgage balance.