Updated Home Finance

Home Equity Calculator

Estimate your home equity, loan-to-value (LTV), combined LTV (CLTV), cash-out refinance potential and future equity in one place.

Home Equity LTV CLTV Cash-Out Refinance Future Equity

Advanced Home Equity, LTV & Cash-Out Calculator

Switch between Equity, LTV, CLTV, Cash-Out Refinance and Future Equity tabs to understand how your mortgages and property value work together.

Estimated market value of your property
Used to estimate available borrowing capacity
Typical limits are 70–80% for many lenders

Results are estimates only. Actual cash-out eligibility and fees depend on lender rules, your credit profile and full underwriting.

This simple projection assumes a constant appreciation rate and a fixed loan balance. Actual equity will vary as you make payments and market conditions change.

Home Equity Calculator – Equity, LTV, CLTV, Cash-Out and Future Value

The Home Equity Calculator helps you understand how much of your property you truly own, how leveraged you are and how much you might be able to borrow in a cash-out refinance. Instead of manually comparing home value, mortgages and lender loan-to-value rules, this tool gives you a clear breakdown for informed decisions.

Home equity is simply the difference between your home’s market value and the total debt secured against it. Lenders and investors also look at loan-to-value (LTV) and combined loan-to-value (CLTV) ratios to measure risk. These ratios influence mortgage approval, interest rates, refinancing options and the amount of cash you can access.

How the Home Equity Calculator Works

The calculator is organized into five modes:

  • Home Equity: Basic equity amount, equity percentage, current LTV and potential borrowing room at a target LTV.
  • LTV Ratio: Loan-to-value ratio using total mortgage balance and home value.
  • CLTV (Multiple Loans): Combined loan-to-value for homes with first, second and other property loans.
  • Cash-Out Refinance: Estimated maximum new loan, gross cash-out and net cash after closing costs.
  • Future Equity: Simple projection of future home value and equity based on an annual appreciation rate.

The calculator does not connect to any lender or credit system. You provide your own property value estimates, loan balances and LTV targets, and it returns the math behind them.

Mode 1: Basic Home Equity

The Home Equity tab is the fastest way to estimate how much equity you currently have. You enter your home’s approximate market value, current mortgage balance and a target maximum LTV percentage. The calculator then reports your equity amount, equity percentage, current LTV and a rough estimate of how much additional borrowing a lender might allow at that LTV.

Home Equity Formulas

Home Equity = Home Value − Mortgage Balance
Equity Percentage = Home Equity ÷ Home Value × 100
LTV Ratio = Mortgage Balance ÷ Home Value × 100
Maximum Debt at Target LTV = Home Value × Target LTV%
Potential Borrowing Room = Max Debt at Target LTV − Current Mortgage Balance

Potential borrowing room is only a theoretical figure. Actual approval depends on your credit profile, income, debt-to-income ratio, local regulations and lender policies.

Mode 2: Loan-to-Value (LTV) Ratio

The LTV Ratio tab focuses on a single number that lenders watch closely: total loan balance compared with property value. You enter current home value and total mortgage balance, and the calculator reports LTV, equity percentage, equity amount and a qualitative assessment (such as low, moderate or high LTV).

LTV Formulas

LTV Ratio = Total Mortgage Balance ÷ Home Value × 100
Equity Percentage = 100 − LTV Ratio
Equity Amount = Home Value − Total Mortgage Balance

Lower LTV generally means lower risk for lenders and can lead to better interest rates and more refinancing options. Higher LTV may limit borrowing choices or increase pricing.

Mode 3: Combined Loan-to-Value (CLTV)

Many homeowners have more than one loan secured by their property, such as a second mortgage or home equity line of credit. The CLTV tab lets you enter a first mortgage, second mortgage and any additional loans, then calculates your combined leverage.

CLTV Formulas

Total Property Debt = First Mortgage + Second Mortgage + Other Property Loans
CLTV Ratio = Total Property Debt ÷ Home Value × 100
Equity Percentage = 100 − CLTV Ratio

CLTV matters because some lenders base cash-out and home equity approvals on combined leverage rather than just the first mortgage. Understanding your CLTV helps you see the full picture.

Mode 4: Cash-Out Refinance Potential

Cash-out refinancing replaces your existing mortgage with a larger one and gives you the difference in cash, subject to lender LTV limits and closing costs. The Cash-Out Refinance tab estimates how much cash might be available under a target maximum LTV.

Cash-Out Refinance Formulas

Maximum New Loan = Home Value × Max LTV%
Gross Cash-Out = Maximum New Loan − Current Mortgage Balance
Estimated Closing Costs = Maximum New Loan × Closing Cost%
Estimated Net Cash = Gross Cash-Out − Estimated Closing Costs

If your existing loan balance is close to or above the maximum new loan amount, gross cash-out may be zero. Closing costs can also significantly reduce the net amount you receive.

Mode 5: Future Equity Projection

Future Equity mode provides a simple scenario analysis based on a constant annual appreciation rate and a fixed mortgage balance. You enter current home value, current loan balance, an appreciation percentage and the number of years you want to project.

Future Equity Formulas

Future Home Value = Current Value × (1 + Appreciation Rate%)Years
Future Equity = Future Home Value − Current Mortgage Balance
Future Equity Percentage = Future Equity ÷ Future Home Value × 100

This view helps you see how moderate appreciation can change your equity position over time. In reality, your loan balance typically declines as you make payments, so actual future equity may be higher than this conservative estimate.

Why Understanding Home Equity Matters

Home equity is often one of the largest components of personal net worth. It affects your ability to refinance, consolidate debt, fund renovations, invest in additional properties or simply strengthen your financial safety net. Lenders, buyers and investors all examine equity and LTV when evaluating risk and pricing.

Using a home equity calculator can help you:

  • See how much of your home you truly own versus how much is financed.
  • Understand whether your LTV is low, moderate or high by common standards.
  • Evaluate whether a cash-out refinance might be feasible at current LTV limits.
  • Plan long-term around potential equity growth from appreciation.
  • Discuss options more confidently with mortgage professionals.

Limitations and Assumptions

This home equity calculator is a planning tool and does not replace a full mortgage review. Important limitations include:

  • Home values are based on your estimate; professional appraisals or market data may differ.
  • Loan balances do not incorporate future scheduled payments or interest changes.
  • Lender policies on maximum LTV, CLTV and cash-out vary by product and jurisdiction.
  • Closing cost percentages are approximate and can differ significantly by lender.
  • Future appreciation is unknown; the calculator uses a constant rate for simplicity.

Always consult qualified mortgage and financial professionals before making major borrowing or refinancing decisions.

How to Use This Tool Effectively

  • Start with the Home Equity tab to understand your current equity and LTV.
  • Use the LTV and CLTV tabs if you have multiple loans or want to focus on risk ratios.
  • Check the Cash-Out Refinance tab to see a rough cash-out scenario under different LTV and closing cost assumptions.
  • Use the Future Equity tab to run optimistic and conservative appreciation scenarios and see how equity might change over time.
  • Save or note down scenarios when speaking with lenders, comparing offers or planning renovations.

Related Tools from MyTimeCalculator

If you are analyzing broader personal finances alongside home equity, these tools can help:

Home Equity Calculator FAQs

Frequently Asked Questions About Home Equity, LTV and Cash-Out

Find answers to common questions about how home equity is calculated, how lenders view LTV and CLTV, and how this calculator can support your planning.

Home equity is the difference between your home’s current market value and the total debt secured against it. If your home is worth 400,000 and you owe 260,000, your equity is 140,000 or 35 percent of the value.

Lender guidelines vary, but many conventional loans target LTV at or below 80 percent for favorable terms. Some cash-out programs may cap LTV between 70 and 80 percent. The calculator lets you test different LTV limits for your situation.

LTV compares the balance of a single mortgage to the home’s value. CLTV compares the total of all mortgages and property-secured loans to the same value. CLTV is more complete when you have second mortgages or home equity lines of credit.

The cash-out estimate is a simplified scenario based on your home value, current balance, target LTV and an estimated closing cost percentage. Real lender offers may differ due to fees, interest rates, credit factors and underwriting rules.

No. For simplicity, the future equity projection assumes the mortgage balance stays constant. In practice, as you make payments, your balance falls and equity grows faster than the calculator shows, especially on amortizing loans.

No. Use the calculator to understand the basic numbers and explore scenarios. Final decisions about refinancing, borrowing or investing should be made with qualified mortgage, legal and financial professionals.

Related Calculators