Home Equity Calculator

Home Equity Calculator

Calculate home equity and loan-to-value from value and mortgage balance.

UNDERSTAND THE ANSWER

How is this calculated?

This calculator applies the displayed mortgage formula directly to your inputs. It keeps full precision during the calculation and rounds only the displayed result.

Home Equity formulaHome equity = current value − mortgage balance

A practical example

Using the default example values, the calculator substitutes 520,000 and 310,000 into the formula. Change the values to model your own scenario.

Calculated result

Current home valueMortgage balanceCalculated answer
$416,000.00$310,000.00$106,000.00
$520,000.00$310,000.00$210,000.00
$624,000.00$310,000.00$314,000.00

Assumptions, interpretation and common mistakes

Calculation assumptions

  • The values entered for current home value and mortgage balance are accurate for the scenario.
  • Rates and recurring amounts remain constant for the period represented by the formula.
  • Provider fees, taxes and timing differences are excluded unless they are explicit inputs.

How to interpret the result

  • Treat the main number as a planning estimate, not a quote, approval or guarantee.
  • Compare at least a baseline, lower and higher assumption before deciding.
  • Use the result together with the related mortgage calculators for a broader view.

Common mistakes to avoid

  • Entering a percentage as a decimal when the field expects a whole percent.
  • Comparing results that use different time periods or omit different fees.
  • Rounding inputs early or treating an estimated rate as guaranteed.