Home Equity and LTV Calculator
How much of your home you own, your loan-to-value, and what you could borrow against it.
Good to know. Equity grows two ways: paying down the loan, and the house going up in value. Only one of them is up to you.
Not financial advice. Uses only the numbers and rates you enter — no live data.
How it works
In plain words
Equity is what the home is worth minus everything you owe on it. The loan-to-value ratio is the mortgage divided by the value. To see how much more you could borrow, take the lender’s limit, say 80% of the value, and subtract what you already owe.
The formula
equity = value − mortgage − other loans LTV = mortgage ÷ value · CLTV = all loans ÷ value can borrow = value × limit − all loans
Worked example
A 400,000 home with 250,000 left on the mortgage has 150,000.00 of equity and an LTV of 62.5%. At an 80% limit, you could borrow up to 320,000 − 250,000 = 70,000 more.
Sources
- Consumer Financial Protection Bureau, What is a home equity line of credit (HELOC)? How borrowing against home equity works.
- Consumer Financial Protection Bureau, When can I remove private mortgage insurance (PMI)? Removing PMI at 80% and automatically at 78% loan-to-value.
Sources checked September 30, 2026. 3 automated tests check its answers on every change.
About the home equity and LTV calculator
Home equity is the part of your home you own outright: its current value minus the mortgage and any other loans secured on it. It grows as you pay down the mortgage and as prices rise, and it is what you would keep, before selling costs, if you sold.
Lenders look at the same thing the other way round, as the loan-to-value ratio or LTV: the loan divided by the value. A lower LTV means less risk for the lender and usually a better rate. In the UK, mortgage rates step down at 90, 85, 75 and 60% LTV. In the US, reaching 80% LTV lets you ask to cancel private mortgage insurance, and it ends automatically at 78% of the original value.
To borrow against your equity, with a home equity loan, a line of credit (HELOC) or a cash-out refinance, most lenders cap the combined loan-to-value (all loans together) at 80 to 85%, some at 90%. The calculator shows how much that leaves. A secured loan puts your home at risk if you can’t keep up the payments, so it is best used for things that last, like improvements, rather than everyday spending.
Use a realistic value: recent sales of similar homes nearby, not the asking prices. A lender will order its own valuation.
Questions people ask
How do I calculate my home equity?
Subtract your mortgage balance and any other secured loans from your home’s current value. 400,000 − 250,000 = 150,000.
What is a good loan-to-value ratio?
80% or lower avoids mortgage insurance in the US and gets better rates. In the UK, rates improve further at 75% and 60%.
How much can I borrow against my house?
Usually up to 80–85% of its value minus what you owe. On a 400,000 home with a 250,000 mortgage, 70,000 to 90,000.