How to use this home equity calculator
- Your home. Enter what your home would sell for today, your state and property type. The credit score range is optional.
- What you owe. Enter your mortgage balance and any other loan secured by the home: a second mortgage, a home equity loan or a HELOC balance.
- Results. Your equity in dollars and percent, your LTV and CLTV, and how much a lender might let you borrow at 80%, 85% and 90% caps. The breakdown above shows the math.
How to calculate home equity
The CFPB defines equity as the value of your home minus the amount you owe on your mortgage. If you have more than one loan on the home, subtract all of them.
Home equity = home value − everything you owe on the home
Equity share = home equity ÷ home value
Example: $450,000 − $250,000 = $200,000, or 44.4% of the value.
How to estimate what your home is worth
Start with recent sale prices of similar homes near you. The FHFA House Price Index calculator shows what a home bought at a given time would be worth if it gained value at its area's average rate; the real value also depends on condition and improvements. When you borrow, the lender's own valuation, an appraisal or an automated valuation model, sets the value that counts.
Loan-to-value (LTV) and combined loan-to-value (CLTV)
The CFPB describes the loan-to-value ratio as a comparison of the amount you finance with the appraised value of the property. Lenders use it to decide how much you can borrow and what rate to offer; borrowers with a higher LTV usually get a higher rate.
- LTV = mortgage balance ÷ home value.
- CLTV = all loans secured by the home ÷ home value. Fannie Mae, for example, adds the first mortgage, the drawn balance of a HELOC and any other second loan.
With a $450,000 home, a $250,000 mortgage and a $50,000 home equity loan, the LTV is 55.6% and the CLTV is 66.7%, leaving 33.3% equity. Some lenders also count the whole limit of an existing HELOC, not just what you have drawn; Fannie Mae does this for first mortgages (HCLTV).
How much equity can you borrow?
Lenders cap everything secured by your home, including the new loan or line, at a share of its value:
Room to borrow = home value × CLTV cap − everything you owe
On a $450,000 home with $250,000 owed:
| Cap | Room to borrow | Lenders that publish this cap |
|---|---|---|
| 80% | $110,000 | Chase (typically), KeyBank; Texas law for a homestead |
| 85% | $132,500 | Bank of America (generally), Citizens, PenFed |
| 90% | $155,000 | Spring EQ; Huntington (89.99%) and PNC (up to 89.90%) come close |
Caps also depend on credit, the property and your income: PenFed's maximum depends on credit qualification and is 80% on condos. The highest cap we found stated as a share of the home's value was 90%, so at the lenders we checked, part of your equity stays in the home.
Texas: 80% for a homestead
The Texas Constitution limits a home equity loan or line on a homestead, together with everything else secured by it, to 80% of its fair market value. For a line of credit, the whole credit limit counts on the day the line is opened, not just what you draw. In Texas the calculator shows the 85% and 90% caps as not available.
What your equity percentage means
- 20% and mortgage insurance. On a conventional loan with a down payment under 20%, you may have to pay private mortgage insurance (PMI). The CFPB says you can ask to cancel it once your balance is scheduled to reach 80% of the home's original value, and the servicer must end it at 78% if you are current on your payments. If the home's value has dropped below the original value, you may not be able to cancel on schedule.
- 10% to 20% stays in the home. At the 80% to 90% caps of the lenders we checked, only equity above 10% to 20% of the value can be borrowed. With less, the calculator shows no room to borrow.
- Below zero. If you owe more than the home is worth, there is nothing to borrow against.
Ways to use your equity
| HELOC | Home equity loan | Cash-out refinance | |
|---|---|---|---|
| How it works | A credit line you draw as needed | One lump sum | A new, bigger mortgage replaces the old one; you get the difference |
| Rate | Typically variable | Fixed or adjustable | Variable or fixed |
| Main drawback | Payment can change and is often much higher once repayment starts | Need more money later: apply for a new loan | Closing costs are generally higher; the new rate may be higher than your current one |
To see the payment on a line of credit, use the HELOC calculator.
Risks before you borrow against your equity
- Your home is the collateral. If you fall behind or cannot repay on schedule, you could lose your home.
- Equity can shrink. If home prices fall, so does your equity. A lender can freeze or reduce a HELOC while the home's value is significantly below the appraised value the line was based on.
- Costs. Application, appraisal and closing costs, and annual or early closing fees on some lines.
- Taxes. Interest is deductible only if you use the money to buy, build or substantially improve the home that secures the loan, and only if you itemize, according to the IRS.
Home equity questions people ask
How do I calculate the equity in my house?
Subtract everything you owe on the home, including any second loan or HELOC balance, from what it is worth today. A $450,000 home with a $250,000 mortgage has $200,000 in equity. That is 44.4% of its value.
How do I know if I have 20% equity in my home?
Divide everything you owe on the home by its value. At 80% or less, you have at least 20% equity: on a $450,000 home, that means owing $360,000 or less. For removing private mortgage insurance (PMI), the CFPB measures against the original value: generally the lower of the price you paid and the appraisal at purchase.
How long does it take to get 20% equity in your home?
From payments alone, a $400,000 home bought with 10% down and a 30-year loan at 7.28% (the Freddie Mac average for the week of October 1, 2026) reaches 80% of the price after about 8 years and 8 months; with 5% down, about 11 years and 1 month.
How do I calculate how much equity I can borrow?
Multiply the home's value by the lender's combined loan-to-value (CLTV) cap and subtract everything you owe. With a $450,000 home, a $250,000 mortgage and an 85% cap: $382,500 minus $250,000 = $132,500. At 80% it is $110,000; at 90%, $155,000. These are estimates: the lender sets the final amount after its own valuation of the home and a credit review.
Can you borrow 100% of your home equity?
Usually not. Lenders cap all loans on the home at a share of its value, so at the lenders we checked, some equity stays in the home. Caps we found: 80% (Chase, KeyBank), 85% (Bank of America, Citizens, PenFed) and 90% (Spring EQ). Navy Federal advertises up to 95% of your home's equity without saying how that is measured. In Texas, a home equity loan or line on a homestead cannot take total debt above 80% of its value.
What does 90% CLTV mean?
All loans on the home, including the new one, can add up to 90% of its value. On a $450,000 home that is $405,000, so with a $250,000 mortgage you could borrow up to about $155,000, an estimate before the lender's own review. Spring EQ advertises up to 90%; in Texas, home equity borrowing on a homestead cannot go above 80%.
What is a good LTV ratio?
Lower is better for you. The CFPB says lenders use the loan-to-value ratio to decide how much you can borrow and what rate to offer, and a higher LTV usually means a higher rate. On a conventional purchase loan, 20% down (an 80% LTV) means no PMI. To borrow against equity, your CLTV after the new loan has to stay within the lender's cap.
What is a good amount of equity in your home?
There is no official number. 20% is where PMI on a conventional loan can be cancelled, measured against the original value. To borrow against your home, you need more equity than the lender makes you keep: 20% at an 80% cap, 15% at 85%. Bank of America, for example, asks for at least 15% equity.
Is it a good idea to pull equity out of your home?
It depends on the use and whether you can afford the payment. Your home secures the loan, so you could lose it if you cannot repay, and a HELOC can be frozen or reduced if the home loses value. The interest may be tax-deductible only if the money buys, builds or substantially improves the home that secures the loan.
What is the cheapest way to get equity out of a house?
It depends on the amount and how long you need it. The CFPB lists generally higher closing costs as a typical drawback of a cash-out refinance, and its new rate may be higher than your current mortgage. Bank of America (on lines up to $1,000,000), Citizens and Navy Federal advertise HELOCs with no closing costs, with conditions. Compare the APR and every fee.
Sources
- CFPB: What you should know about home equity lines of credit - definition of equity, borrowing options compared
- CFPB: What is a loan-to-value ratio?
- CFPB: What is private mortgage insurance?
- CFPB: When can I remove private mortgage insurance (PMI)?
- Fannie Mae Selling Guide B2-1.2-02: Combined loan-to-value (CLTV) ratios
- Fannie Mae Selling Guide B2-1.2-03: Home equity combined loan-to-value (HCLTV) ratios
- FHFA: House Price Index datasets and HPI calculator
- Texas Constitution, Article XVI, Section 50 (home equity lending)
- 12 CFR 1026.40: requirements for home equity plans (Regulation Z) - when a lender may freeze or reduce a line
- IRS Publication 936: Home Mortgage Interest Deduction
- Federal Reserve Bank of St. Louis (FRED): 30-Year Fixed Rate Mortgage Average (Freddie Mac)
- Chase: Home equity line of credit - 80% cap
- Chase: HELOC calculator - 680 minimum score
- KeyBank: Home equity line of credit - 80% CLTV
- Bank of America: Home equity - 85% cap, 15% equity, 660 score, fees
- Citizens: Home equity line of credit - 85% max loan to value, 680 score
- PenFed: Home Equity Line of Credit - 85%; 80% in Texas and for condos
- Spring EQ: Variable-rate HELOC - up to 90%, 640 score
- Huntington: Home equity lines of credit - 89.99% cap
- PNC: Home equity line of credit - 79.90% to 89.90%
- U.S. Bank: Home equity line of credit - 660 score, income and DTI
- Navy Federal: HELOC - 95% of equity, no closing costs
- Figure: Home equity line - automated valuation models or appraisal
More calculators
- HELOC calculatorYour HELOC limit, the interest-only payment and the payment after the draw period ends.
- Home equity loan calculatorYour fixed monthly payment, total interest and estimated maximum loan, next to a HELOC on the same amount.
- Cash-out refi vs. HELOCKeep your mortgage and add a HELOC, or refinance for cash: which costs less over the years you choose.
- Compare home equity optionsHELOC, home equity loan, cash-out refi, home equity investment, 401(k) loan: what each costs for your cash and timeline.
- Home equity investmentWhat a shared-equity deal really costs: your payback, the total cost and the cost a year, next to a loan.