Home Equity & HELOC Calculator
Calculate your home equity and how much you could borrow against it.
What is home equity?
Equity is your home's value minus what you owe on it. Lenders typically let you borrow up to a set share of the value, often 80-85%, including your mortgage. The room between that limit and your balance is what a home equity loan or line of credit might offer.
Use it wisely
Your home is the security, so missed payments risk foreclosure. It suits value-adding projects better than everyday spending.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Get a recent valuation before applying.
- Borrow only what you need.
- Compare fixed and variable rates.
Frequently asked questions
What LTV do lenders use?
Often 80-85%, but it varies.
Is a HELOC a good idea?
It can be, for planned projects, but the risk is your home.
Does it include fees?
No.
Money guides for this topic
All guides →Buying a Home or Car: The Math Before You Sign
How to work out what you can really afford for a home or car, using simple rules and real numbers.
Read guide →How Loan Interest Really Works
Understand APR, amortization and why early payments are mostly interest, with tips to pay less.
Read guide →How to Save Money: 10 Practical Ways with Real Numbers
Ten proven ways to save money, each with the math showing how much you can keep every year.
Read guide →Related calculators
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Open calculator →Refinance Break-Even Calculator
See if refinancing a loan saves money and how many months it takes to break even.
Open calculator →Results are estimates and not financial advice.