Home equity calculator
See what you own outright today, how much of it a lender would let you borrow, and how much equity you will have built years from now.
A $600,000 home with a $350,000 mortgage has $250,000 of equity, of which about $130,000 is borrowable at an 80% loan-to-value ceiling.
What it would sell for today
What you still owe
Assumed each year
That is 41.7% of the home's value, at 58.3% loan-to-value.
A HELOC or second lien could reach this much
Net of about 2% closing costs on the new loan
If the home grows 3% a year
The home's value rising
Principal your payments retire
| Year | Home value | Owed | Equity |
|---|---|---|---|
| Today | $600,000 | $350,000 | $250,000 |
| 5 | $695,564 | $314,762 | $380,802 |
| 10 | $806,350 | $267,232 | $539,118 |
Estimates only, not a lending decision or financial advice. Borrowable amounts depend on a lender's own underwriting, your credit, and an appraisal. Projections assume a steady appreciation rate and on-schedule payments, and exclude selling costs and any second lien.
Equity at different home values
| Home value | Owed | Equity today | Borrowable at 80% | Equity in 10 years |
|---|---|---|---|---|
| $400,000 | $250,000 | $150,000 | $70,000 | $346,687 |
| $600,000 | $350,000 | $250,000 | $130,000 | $539,118 |
| $850,000 | $500,000 | $350,000 | $180,000 | $760,569 |
| $1,200,000 | $600,000 | $600,000 | $360,000 | $1,154,588 |
Assumes a 6% mortgage with 25 years left, 3% annual appreciation, and an 80% combined loan-to-value ceiling.
Equity you have, and equity you can reach
Equity is the part of the house that is yours: its value less the debt against it. What a lender will hand you is a smaller number, because they keep a cushion. An 80% combined loan-to-value ceiling means your first mortgage and any new borrowing together cannot exceed 80% of the appraised value, so the first mortgage uses up most of the allowance before you start.
Looking forward, equity grows two ways at once, and they are worth separating. Appreciation raises the value. Amortization lowers the debt, and it accelerates: early payments are mostly interest, later ones mostly principal. A projection that only models appreciation misses the half you control by making payments.
If you are deciding what to buy in the first place, the home affordability calculator works the same math from the other end, or book a free consultation .