Home Equity Calculator
Calculate your current home equity amount and equity percentage based on your home's estimated market value and your remaining mortgage balance.
Calculation Results
The net value of your home ownership interest.
The percentage of your home that you own outright.
How This Calculator Works
To calculate your home equity:
- Enter the estimated current market value of your home (you can use an online valuation or a recent appraisal).
- Enter your current outstanding mortgage balance.
The calculator displays the dollar amount of equity and the percentage of ownership you hold in the property.
Formula & Calculations
Home equity is calculated by subtracting your outstanding mortgage balance from the estimated current market value of your home:
Home Equity = Home Value - Mortgage Balance
The equity percentage represents your ownership share of the property value, expressed as a percentage:
Equity Percentage = (Home Equity / Home Value) × 100
Step-by-Step Calculation Examples
Typical Home Ownership Equity
Calculating equity on a home valued at $450,000 with a remaining mortgage balance of $280,000.
- home_value: 450000
- mortgage_balance: 280000
- home_equity: $170,000.00
- equity_percentage: 37.78%
Frequently Asked Questions
What is home equity?
Home equity is the difference between your property’s fair market value and the outstanding balance of all loans secured by the property (like your primary mortgage, second mortgage, or HELOC). It represents the actual financial stake you own.
How do I build home equity?
You build home equity in two ways: 1) by paying down your mortgage principal through monthly payments or extra payments, and 2) through property appreciation as the market value of your home increases over time.
How can I access or use my home equity?
You can tap into your home equity by taking out a Home Equity Loan, opening a Home Equity Line of Credit (HELOC), or through a cash-out refinance. Lenders typically allow you to borrow up to 80% to 85% of your home's total value.