Home Equity Calculator: How Much Equity Do You Have? (2026)

🏡 Home Equity Calculator

Find out how much equity you own, your LTV, & maximum cash-out potential (80% LTV).

🏠 Current Home Value ($)

$

Range: $50k - $1M

💰 Remaining Mortgage Balance ($)

$

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

⚠️ Most lenders require a minimum cash-out of $20,000–$25,000. Your net proceeds are below this range.

📌 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:

1. Enter your home's current market value – Use a recent appraisal, Zestimate, or comparable sale price in your neighborhood.
2. 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

LTV
($210,000 / $350,000) × 100 = 60%

Max Loan at 80% LTV
$350,000 × 0.80 = $280,000

Gross Cash‑Out
$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?

Below 80% is ideal. Between 80–90% you may still qualify but with higher rates or PMI. Above 90% is rarely approved for cash‑out.

📈 Does credit score affect my cash‑out amount?

Yes. Even with perfect LTV, most lenders require a credit score of 620 or higher. Lower scores may reduce approval odds or increase interest rates.

🏦 Can I use this calculator for a HELOC?

Yes, but HELOCs may allow up to 85–90% LTV. Use this as a conservative baseline. The equity math is the same; only the max LTV changes.

💰 Is the cash‑out amount taxable?

No – it’s borrowed money, not income. However, interest may be tax‑deductible if used for home improvements. Consult a tax advisor for your specific situation.

⚠️ What if my LTV is over 80%?

Consider waiting until your home value increases or you pay down more of your mortgage. Some lenders offer “rate‑and‑term” refinancing (no cash out) even with higher LTV.

📅 How often should I check my home equity?

At least once a year or whenever home values in your area change significantly. Also check before major financial decisions like refinancing or taking a HELOC.

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