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Real estate & rental

Real Estate Home Equity Calculator

Equity in a home, the loan-to-value ratio, and how much of it a lender would let you borrow.

Your numbers

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Result

Equity $202,000
Current loan to value 57.02%
Available to borrow $131,500
Equity as a share of value 43.0%
LTV if you borrowed it all 85.0%
Equity is $202,000, 43.0% of value, at an LTV of 57.02%. A lender allowing 85 combined LTV would lend up to $131,500 more.

An arithmetic tool, not financial or legal advice. Lending criteria, tax treatment and tenancy law all vary by state and change regularly. Confirm anything that affects a decision with a lender, an accountant or an attorney. Available equity is not free money: borrowing against a home secures the debt on it, and a fall in value can leave you owing more than it is worth. Lenders also use their own appraisal rather than an owner's estimate, and it is frequently lower.

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Questions

About this calculator

How much equity can I borrow?

Most lenders cap combined loan to value at 80% to 90%, so with an existing mortgage the available amount is often far less than the equity.

Does home improvement add equity?

Some does, most does not add its full cost. Kitchens and bathrooms recover more than pools and extensions typically do, and none of it is guaranteed.

The formula

equity = value - all debt secured on the property; available = value x maximum LTV - existing debt

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