How to use the home equity calculator
- Enter home value (appraisal or estimate) and mortgage balance owed today.
- Enter max CLTV %—the combined loan-to-value limit your lender uses for HELOC or second-lien planning (often 80–90%).
- Read equity, available to borrow, and current LTV.
Equity and borrowing room
Equity = value − mortgage. Max total borrowing ≈ value × CLTV; available ≈ that cap minus existing mortgage ( floored at zero ). Actual HELOC limits also depend on credit, income DTI (DTI calculator), and program rules.
Example
$450k value, $280k balance, 85% CLTV → max total debt $382.5k, available borrow ≈ $102.5k before costs—not an offer to lend.
Related
Affordability, mortgage payment, refinance.
Frequently asked questions
What is home equity on this page?
Equity is estimated home value minus the mortgage balance you still owe. It is the owner’s stake before borrowing more against the property—not cash in hand until you sell or borrow.
What is CLTV and what should I enter?
Combined loan-to-value (CLTV) is total borrowing divided by home value. Enter the maximum CLTV % your lender allows for a HELOC or second lien (often 80–90%). Available to borrow ≈ (value × CLTV cap) − existing mortgage, floored at zero.
How is “available to borrow” different from an approval?
It is a math ceiling from value, balance, and CLTV—not an offer. Actual lines depend on credit, income, DTI, appraisal, and program rules.
What is LTV in the results?
Current LTV = mortgage balance ÷ home value. It rises if value falls or if you borrow more; CLTV adds any new borrowing on top.
Should I use Zestimate or appraisal?
Use a recent appraisal, lender AVM, or your best conservative estimate. Overstating value overstates equity and borrowing room.
How does this relate to affordability and refinance?
Payment planning: affordability and mortgage calculator. Changing first-lien payment: mortgage refinance. Debt ratios: DTI calculator.
Are HELOC fees or draw periods modeled?
No—only equity and CLTV headroom. Rate spreads, annual fees, and interest-only phases are not included.
Can I share my scenario?
Yes. Use copy link below the form to share the same numbers with someone else or keep the scenario for your records.