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Calculate home equity from value and mortgage balance — see equity dollars, percent and LTV.
Calculate home equity from value and mortgage balance — see equity dollars, percent and LTV.
Enter values above and click Calculate — results will appear here with the formula explained.
Home equity is market value minus mortgage balance: $450,000 value with $280,000 owed is $170,000 equity (37.8%), with LTV at 62.2%. Equity percent and LTV are complements summing to 100% — lenders speak LTV (for PMI, refinance and HELOC limits) while owners speak equity dollars.
Value is the moving part: use recent comparable sales, not purchase price or tax assessments (which lag and serve different purposes). Appreciation builds equity without payments — a 5% yearly rise on $450,000 adds $22,500 annually, often exceeding principal paydown in early mortgage years when payments are interest-heavy.
How much equity do you actually have access to? Rarely all of it: lenders cap combined borrowing around 80–85% LTV, so $170,000 equity at 62.2% LTV yields roughly $80,000–$100,000 of usable equity via HELOC or home-equity loan. The rest is a buffer protecting against price dips — borrowing to the max repeats 2008's core mistake.
LTV thresholds run your mortgage life: above 80% pays PMI ($100–300/month typical); at 80% you can request PMI removal (with appraisal); at 78% it drops automatically on original schedule; below 60% unlocks best refinance pricing. Track LTV yearly — appreciation alone may have already earned PMI removal you're still paying for.
Negative equity (underwater) happens when balance exceeds value after price drops or minimal-down purchases in flat markets. Options narrow to staying put, bringing cash to sales, short sales, or strategic patience — selling underwater requires covering the gap out of pocket plus closing costs.
Calculate home equity from value and mortgage balance — see equity dollars, percent and LTV. Formula: Equity = value - balance. Example: With $450,000 value and $280,000 balance: equity $170,000 (37.8%), LTV 62.2% — PMI long gone, refinance-eligible at top pricing.
Home equity is market value minus mortgage balance: $450,000 value with $280,000 owed is $170,000 equity (37.8%), with LTV at 62.2%. Equity percent and LTV are complements summing to 100% — lenders speak LTV (for PMI, refinance and HELOC limits) while owners speak equity dollars.
Value is the moving part: use recent comparable sales, not purchase price or tax assessments (which lag and serve different purposes). Appreciation builds equity without payments — a 5% yearly rise on $450,000 adds $22,500 annually, often exceeding principal paydown in early mortgage years when payments are interest-heavy.
How much equity do you actually have access to? Rarely all of it: lenders cap combined borrowing around 80–85% LTV, so $170,000 equity at 62.2% LTV yields roughly $80,000–$100,000 of usable equity via HELOC or home-equity loan. The rest is a buffer protecting against price dips — borrowing to the max repeats 2008's core mistake.
LTV thresholds run your mortgage life: above 80% pays PMI ($100–300/month typical); at 80% you can request PMI removal (with appraisal); at 78% it drops automatically on original schedule; below 60% unlocks best refinance pricing. Track LTV yearly — appreciation alone may have already earned PMI removal you're still paying for.
Negative equity (underwater) happens when balance exceeds value after price drops or minimal-down purchases in flat markets. Options narrow to staying put, bringing cash to sales, short sales, or strategic patience — selling underwater requires covering the gap out of pocket plus closing costs.
With $450,000 value and $280,000 balance: equity $170,000 (37.8%), LTV 62.2% — PMI long gone, refinance-eligible at top pricing. Usable equity at 85% cap: $382,500 − $280,000 ≈ $102,500 available via HELOC.
Formulas are standard public references (see our methodology). External standards are cited in the text where they apply.
Last reviewed: September 2026 · Report an error