Equity Home Calculator
Home Equity Calculator
Enter your home value and loan balances to see your equity, LTV, CLTV, and how much you could actually borrow against, including what happens when a second lien already exists.
What would the equity loan cost?
Take the “Available to borrow” figure from the calculator above and price it as a fixed-rate home equity loan with the standard amortization formula: monthly payment = P x r(1+r)^n / ((1+r)^n – 1), where r is the monthly rate and n is the number of payments. The $108,000 example below costs $1,032.10/month at 8% over 15 years, with $77,778.77 of total interest and a first year of $8,499.58 interest and $3,885.67 principal. Variable-rate HELOC draws will differ.
Cash-out refinance break-even
Refinancing costs money to save money: divide the closing costs by the monthly savings to get the break-even in months. $5,000 of closing costs saving $200/month breaks even in 5,000 / 200 = 25 months (2 yr 1 mo). Sell or refinance again before then and the refinance cost you money; every month past break-even is pure savings.
How to use this calculator
Enter your home's current market value, your first mortgage balance, and any second lien or HELOC balance. Set the lender's maximum CLTV (80% is the common cap, but enter your lender's actual number). The calculator shows your equity, your LTV and CLTV, and the amount you could actually borrow. The two sections below price that amount as an equity loan and work out any cash-out refinance break-even by hand.
Worked example, checked against this exact tool
A $410,000 home with a $220,000 first mortgage and no second lien, at an 80% max CLTV.
- Equity = 410,000 - 220,000 = $190,000.00 (46.3% of value).
- LTV = 220,000 / 410,000 = 53.7%; CLTV is the same with no second lien.
- Max total borrowing = 410,000 x 0.80 = $328,000.00. Available = 328,000 - 220,000 = $108,000.00.
Equity-loan example, worked from the amortization formula: borrowing that $108,000 at 8% for 15 years costs $1,032.10/mo, with $77,778.77 in total interest; the first year is $8,499.58 interest and $3,885.67 principal.
What competing calculators miss
Bank tools compute the borrowable amount but rarely explain why you cannot touch your full equity, and almost none show what happens when a second lien already exists. The strongest competitor we found bolts a payment estimator onto the page; this page explains the same math in plain prose with worked examples: the first-year interest/principal split and the cash-out refinance break-even that answer the question borrowers actually ask next: how long until the refinance pays for itself.
Frequently asked questions
How do I calculate my home equity?
Subtract everything you owe on the home (first mortgage plus any second liens or HELOC balances) from its current market value. A $410,000 home with a $220,000 balance gives $190,000 of equity.
What is the difference between LTV and CLTV?
LTV uses only the first mortgage; CLTV adds every loan secured by the home (second mortgage, HELOC). Lenders use CLTV when you apply for a home equity loan or HELOC.
Why can I only borrow 80% of my home's value?
Most lenders cap combined borrowing at 80% of appraised value, leaving a 20% equity cushion against price drops. Some lenders allow 85 to 90% with stricter credit and income requirements; enter your lender's actual cap.
What if my home is worth less than I owe?
That is negative equity, being underwater. The calculator will tell you plainly: there is no equity to borrow, and selling would require bringing cash to closing or a short sale.
How long until a cash-out refinance pays for itself?
Divide the closing costs by the monthly savings. $5,000 in costs saving $200/mo breaks even in 25 months; selling or refinancing again before then means the refinance cost you money.