🏡 Home Equity Calculator
Find out how much equity you own, your LTV, & maximum cash-out potential (80% LTV).
Range: $50k - $1M
Range: $0 - $900k
Cash-out refinance typically allows up to 80% Loan‑to‑Value (LTV). This calculator shows max cash-out at 80% LTV.
LTV Ratio
0%
0%
50%
80%
100%
🏦 Total Home Equity
$140,000
(Home value − Mortgage balance)
📊 Loan‑to‑Value (LTV)
60.0%
✅ Eligible for cash-out (≤80% LTV)
🏦 Max Loan Amount (80% LTV)
$280,000
80% of current home value
💰 Gross Cash‑Out Potential
$70,000
At 80% LTV (max loan − mortgage balance)
Estimated Closing Costs (3%)
-$2,100
Estimated Net Proceeds
$67,900
📌 Equity Percentage:
40.0%
🔍 Cash‑Out Refi Eligibility:
✓ Likely Eligible (LTV ≤ 80%)
*Actual cash-out also depends on credit score, DTI, and lender requirements. Closing costs (estimated 3%) may vary; net proceeds shown after typical costs.
This free calculator provides estimates only. Consult a lender for exact eligibility.
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How to Use the Home Equity Calculator & Why It Matters
Understand your equity, LTV, and cash‑out potential — with real examples and answers to common questions.
How to Use This Calculator
Using the calculator is straightforward and requires just two numbers:
- Enter your home's current market value – Use a recent appraisal, Zestimate, or comparable sale price in your neighborhood.
- Enter your remaining mortgage balance – Find this on your latest mortgage statement.
As you type or slide the controls, your results update instantly:
- Total Home Equity – Your home's value minus what you still owe.
- Loan‑to‑Value (LTV) Ratio – Your mortgage balance divided by your home's value.
- Max Loan Amount at 80% LTV – 80% of your home's value (typical cash‑out refi cap).
- Gross Cash‑Out Potential – Max loan amount minus current mortgage balance.
- Estimated Net Proceeds – Gross cash‑out minus typical 3% closing costs.
Pro tip: A visual LTV gauge shows instantly whether you fall into the “eligible” green zone (≤80% LTV) or the warning zones.
Why It Matters
Knowing your home equity and LTV helps you make informed financial decisions. Home equity is often your largest asset. By understanding how much cash you can access, you can:
- Consolidate high‑interest credit card debt.
- Fund home renovations that increase property value.
- Pay for education, medical bills, or other major expenses.
The 80% LTV rule is a standard industry guideline for cash‑out refinancing. Staying under this threshold typically avoids private mortgage insurance (PMI) and qualifies you for better interest rates.
Quick insight: Over time, as home values rise and you pay down your mortgage, your equity grows — unlocking more financial options.
The Math Behind the Calculations
📊 Example Scenario:
Home value = $350,000 | Mortgage balance = $210,000
Total Equity
$350,000 – $210,000 = $140,000
$350,000 – $210,000 = $140,000
LTV
($210,000 / $350,000) × 100 = 60%
($210,000 / $350,000) × 100 = 60%
Max Loan at 80% LTV
$350,000 × 0.80 = $280,000
$350,000 × 0.80 = $280,000
Gross Cash‑Out
$280,000 – $210,000 = $70,000
$280,000 – $210,000 = $70,000
Net Proceeds (3% closing costs): $70,000 – ($70,000 × 0.03) = $67,900
This same formula applies regardless of your home value — just plug in your numbers and the calculator does the work instantly.
Frequently Asked Questions
🏠 What is a good LTV for cash‑out refinancing?
📈 Does credit score affect my cash‑out amount?
🏦 Can I use this calculator for a HELOC?
💰 Is the cash‑out amount taxable?
⚠️ What if my LTV is over 80%?
📅 How often should I check my home equity?
Important note: This calculator provides estimates only. Actual loan approval depends on credit score, debt-to-income ratio, lender policies, and a formal appraisal. Always consult a licensed mortgage professional.
Home Equity Guide • Use the calculator above to run your numbers
📚 Official Sources & Industry Standards
This calculator is based on Freddie Mac and Fannie Mae cash-out refinance guidelines, verified by these official sources:
80% LTV Maximum (Conventional)
Freddie Mac requires homeowners to retain at least 20% equity after cash-out refinancing. Maximum LTV = 80% for 1-unit primary residences.
Freddie Mac: Cash-Out Refinance
LTV & Equity Calculation
Loan-to-Value (LTV) = Current Mortgage Balance ÷ Current Home Value. Total Equity = Home Value − Mortgage Balance.
Freddie Mac: LTV Ratio Requirements
Closing Costs (2-5% industry standard)
Closing costs can be rolled into the new loan amount. Industry standard ranges from 2-5%; your calculator uses a 3% estimate.
Mr. Cooper: Cash-Out Refi FAQs📖 Additional Official Guidance: Freddie Mac's cash-out refinance mortgages allow borrowers to receive cash from home equity for debt consolidation, home improvements, or any other purpose. All closing costs, financing costs, and prepaids can be rolled into the new loan amount.
Freddie Mac: Cash-Out Refinance Fact Sheet (PDF)🏠 Property Type Variations: Your calculator assumes a primary residence. For second homes, maximum LTV is typically 75%; for investment properties, 70-75% LTV applies (per Freddie Mac guidelines).
Sources verified: June 2026 | Based on Freddie Mac Single-Family Seller/Servicer Guide and industry standards | Actual loan approval depends on credit score, DTI, and lender requirements. Always consult a licensed mortgage professional.