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Home Equity Calculator

Find out how much equity you've built in your home and what borrowing options are available to you. Track your equity growth over time.

How to Use This Calculator

Enter your current home value (or use the purchase price with appreciation rate and years owned to estimate). Enter your current mortgage balance and any other liens. The calculator shows your equity amount, percentage, and borrowing options.

Understanding Your Results

Your equity percentage shows what portion of your home you truly own. The HELOC estimate shows the maximum credit line available (typically up to 80-85% of value minus mortgage). The growth projection illustrates how your equity will increase over the next 5-10 years through principal paydown and appreciation.

Pro Tips

  • ✓Get a professional appraisal or comparative market analysis for an accurate home value — online estimates can be off by 10-20%.
  • ✓Shop multiple lenders for HELOCs — rates and fees vary significantly.
  • ✓Be cautious borrowing against equity — you're putting your home at risk as collateral.
  • ✓Home equity can be a low-cost funding source for home improvements that further increase value.

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Frequently Asked Questions

How do I calculate my home equity?▼
Home equity equals your home's current market value minus any outstanding mortgage balances and liens. For example, if your home is worth $400,000 and you owe $250,000, your equity is $150,000 (37.5%).
How much equity can I borrow against?▼
Most lenders allow you to borrow up to 80-85% of your home's value, minus your existing mortgage balance. This is available through home equity loans (fixed rate, lump sum) or HELOCs (variable rate, revolving credit line).
What is a HELOC and how does it work?▼
A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home. You can borrow and repay as needed during the draw period (typically 10 years), then repay the balance over the repayment period (10-20 years).
How fast does home equity grow?▼
Equity grows through two mechanisms: paying down your mortgage principal and home price appreciation. In the early years of a mortgage, principal paydown is slow. Home appreciation (historically 3-5% nationally) is often the larger equity builder in the short term.
Is a home equity loan or HELOC tax deductible?▼
Interest on home equity loans and HELOCs is tax deductible if the funds are used to buy, build, or substantially improve your home. Interest on funds used for other purposes (debt consolidation, vacations) is generally not deductible.