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Calculate your equity, LTV ratio, and available HELOC borrowing power
Home equity is the portion of your home's value that you own outright, calculated as the current market value minus any outstanding mortgage balances. Equity grows as you make payments and as your home appreciates in value.
Your Home Equity
$170,000.00
37.8% of home value
LTV Ratio
62.2%
Total Debt
$280,000.00
HELOC Eligibility Estimate
| LTV | Borrowing Eligibility |
|---|---|
| 50% | Excellent equity. Eligible for best rates and terms. |
| 60% | Strong equity. Wide lender eligibility. |
| 70% | Good equity. Standard prime rates. |
| 80% | Standard threshold. PMI not required. |
| 85% | Max HELOC limit for most lenders. |
| 90% | Limited HELOC eligibility. Higher rates. |
Formula
Home Equity = Current Market Value − Outstanding Mortgage Balance(s)Current Market Value = The estimated fair market value of your home today
Outstanding Balance(s) = Total of all mortgage and lien balances on the property
Worked Example
$450,000 home with $280,000 mortgage
Did you know? U.S. homeowners collectively held over $32 trillion in home equity in 2024, near an all-time high. The average homeowner with a mortgage has gained more than $150,000 in equity since 2020 due to rapid home price appreciation (source: Federal Reserve Flow of Funds Report, Z.1).
Sources
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