Home Equity Calculator
Calculate your current home equity and loan-to-value ratio
About this calculator
A home equity calculator helps homeowners determine how much equity they've built in their property by comparing their current home value to their outstanding mortgage balance. This tool calculates your loan-to-value (LTV) ratio, which is crucial for refinancing decisions, home equity loans, or lines of credit. Understanding your home equity position enables better financial planning and helps you leverage your property's value for major purchases, debt consolidation, or home improvements.
How to use
Enter your current home's estimated market value and your remaining mortgage balance. The calculator will instantly compute your home equity amount and loan-to-value ratio. Use recent comparable sales or professional appraisals for accurate home value estimates to get the most reliable equity calculations.
Frequently asked questions
What is a good loan-to-value ratio?
Most lenders prefer LTV ratios of 80% or lower. Lower ratios indicate more equity and better lending terms for refinancing or equity loans.
How often should I calculate my home equity?
Check your home equity annually or when considering major financial decisions like refinancing, home improvements, or accessing equity through loans.
Does home equity include closing costs?
Home equity calculations don't typically include potential selling costs like realtor fees, closing costs, or taxes that would reduce net proceeds.