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Home equity estimate

How much estimated home value remains after secured debt?

Your numbers

$
$
$

Estimated equity

$223,000

LTV58.7%

Tip. Lenders will apply their own, usually lower, valuation. Being conservative here saves disappointment later.

Assumptions

  • Equity = the home value you enter − the mortgage balance − other liens.
  • You supply the value. A lender will use its own appraisal, which is often lower than an online estimate.
  • Equity is not sale proceeds. Selling costs of roughly 6 to 8% come out before you see any cash.
  • Most lenders will only let you borrow against part of this, commonly up to 80 to 85% combined loan-to-value.

Explore the numbers

Examples and charts

Start with a scenario, then read the response curve to see which input actually moves the answer.

Example 1

Early in the mortgage

A few years in, where most of the equity is still the original down payment.

Estimated equity

$70,000

Example 2

Established equity

Years of payments plus appreciation, with a small second lien outstanding.

Estimated equity

$223,000

Example 3

Conservative valuation

The same home valued 8% lower, which is closer to what an appraisal may return.

Estimated equity

$180,000

Sweeps estimated home value from half to one and a half times your value, holding everything else fixed.

Response curve

How estimated home value moves the result

Estimated equity

$223,000

$0$100k$200k$300k$400k$500k$300k$400k$500k$600k$700k$800k
Chart axis: Estimated home valueNow $540k → $223k

What this calculates

Estimates equity after subtracting the mortgage and any other liens from a home value you supply. It is the starting point for borrowing decisions and for judging whether a sale nets what you expect.

How to use it

  1. Start with estimated home value and work down the form, or load an example to begin from a realistic case.
  2. Read the headline result alongside the supporting rows, which show the intermediate figures behind it.
  3. Check the assumptions. They decide what the number includes and, more importantly, what it leaves out.
  4. Sweep estimated home value on the response curve to see how much it actually moves the answer.
  5. Run a cautious case as well as an optimistic one before using the estimate in a decision.

Common mistakes

  • Using an optimistic online estimate as though it were an appraisal.
  • Forgetting a drawn HELOC or a contractor's lien.
  • Treating equity as spendable savings when accessing it requires either debt or a sale.

Formula

Equity = value − mortgage balance − other liens

Inputs

  • Estimated home value
  • Mortgage balance
  • Other liens / HELOC

FAQ

Does a HELOC count?

Yes. Put any drawn HELOC balance or second mortgage into other liens, because a lender will count it against you when calculating combined loan-to-value.

How much of my equity can I actually borrow?

Most lenders cap combined loan-to-value around 80 to 85%, so you cannot access the last slice. The loan-to-value calculator shows where you sit against that limit.

Is equity the same as what I would net on a sale?

No. Selling costs of roughly 6 to 8% come off the top, so the cash you walk away with is meaningfully less than the equity figure.

Are these numbers financial advice?

No. They are educational estimates based on the inputs and assumptions on this page. Confirm important decisions with a qualified professional and your own documents.

Read the full guideHow to calculate home equity

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