What is the Home Equity Calculator?
The Home Equity Calculator subtracts debt secured by the property from the home value you enter. CFPB describes equity as the amount a property is currently worth minus the amount owed on an existing mortgage; adding other liens gives a combined view of secured debt.
How does the Home Equity Calculator work?
The calculator adds the mortgage balance and any additional property-secured balance, subtracts that total from current home value, then divides debt and equity by home value to show combined LTV and equity percentage.
What formula or rule does it use?
Home equity = current home value − mortgage balance − other property-secured balances The dynamic “How this answer was calculated” panel substitutes the values you enter into the rule after a valid calculation.
How should you use this calculator?
Enter a realistic current value and current balances. If you are considering a refinance, continue with the Refinance Calculator. For purchase-side financing, see the Mortgage Calculator, Down Payment Calculator, and Home Affordability Calculator.
How should you understand the result?
Positive equity means the entered home value exceeds the entered secured balances. Negative equity means the secured balances are greater than the estimated home value. CLTV is a ratio, not a statement of lender eligibility.
What are the limitations?
A home-value estimate can differ from an appraisal or sale price, and lenders may apply product-specific LTV/CLTV definitions, limits, fees, and underwriting rules.
Who can use this calculator?
Useful for homeowners reviewing equity before a refinance, home equity loan, HELOC, sale, or general household balance-sheet planning.
Frequently asked questions about Home Equity
Sources and methodology
Methodology, terminology and consumer guidance are grounded in the following U.S. government or housing-finance references where applicable.