What is home equity?
Home equity is the difference between the current market value of your home and the amount you still owe on your mortgage.
How do I calculate home equity?
Subtract your remaining mortgage balance from your home's current value. For example, if your home is worth $400,000 and you owe $250,000, your home equity is $150,000.
Can home equity be negative?
Yes. Negative equity happens when you owe more on your mortgage than your home is currently worth.
Why does home equity matter?
Home equity can help you understand your net worth, estimate how much of your home you truly own, and decide whether refinancing, selling, or borrowing against your home may make sense.
Does this calculator include closing costs or loan fees?
No. This calculator gives a simple estimate based on home value and mortgage balance. Actual available equity may be lower after closing costs, lender limits, taxes, or fees.
Can I borrow all of my home equity?
Usually no. Lenders often limit how much equity you can borrow against. Many home equity loans and lines of credit require you to keep a percentage of equity in the home.
How accurate is the result?
The result is only as accurate as the numbers you enter. Your home's market value can change, and your mortgage balance should be checked against your latest loan statement.