CalculationTime

Home Equity Calculator

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Your numbers, formula and explanation together

Home Equity Calculator: $132,500. current equity $200,000 · after a $30,000 draw: $102,500 remaining

Formula applied

The exact method behind this answer

CalculationTime keeps the method visible so the number can be checked instead of blindly trusted.

Current equity = home value − mortgage balance. Maximum borrowable = home value × maximum loan-to-value percent ÷ 100 − mortgage balance. Amount remaining after a draw = maximum borrowable − desired draw amount.
  1. Apply the formulaCurrent equity = home value − mortgage balance. Maximum borrowable = home value × maximum loan-to-value percent ÷ 100 − mortgage balance. Amount remaining after a draw = maximum borrowable − desired draw amount.$132,500current equity $200,000 · after a $30,000 draw: $102,500 remaining

Your live breakdown

Current inputs in the calculation

These values come from the controls above and update when the calculator changes.

Home value
450,000 currency
Current estimated market value of the home, not the original purchase price.
Mortgage balance
250,000 currency
Outstanding balance on the primary mortgage and any other liens.
Lender maximum combined loan-to-value
85 %
The maximum combined loan-to-value most home equity lenders allow, commonly 80-90%.
Desired draw amount
30,000 currency optional
Optional amount you want to borrow, to check what remains available afterward.

Resulting answer

$132,500

current equity $200,000 · after a $30,000 draw: $102,500 remaining

Answer
$132,500
Live support
current equity $200,000 · after a $30,000 draw: $102,500 remaining

Assumptions used

What this answer assumes

Best for early planning before applying for a home equity loan or HELOC: checking how much equity exists and roughly how much of it a lender would typically let you borrow.

  • Home value should reflect a realistic current market value or recent appraisal, not the original purchase price.
  • Maximum loan-to-value is a lender-specific limit; this page uses an editable estimate rather than one lender's exact policy.
  • Mortgage balance should include all liens ahead of the home equity loan or HELOC, not just the primary mortgage if a second lien already exists.
  • This page does not model interest rates, draw periods, variable HELOC rates or repayment terms.
  • This is a planning estimate, not a lender's approval, appraisal or credit decision.

Master’s Tip

How to use the result well

Master's Tip: maximum borrowable is not the same as current equity. Lenders cap total borrowing (all liens combined) below full home value, so the borrowable figure is usually smaller than raw equity.

Printable record

What belongs in the saved calculation

Save the inputs, result, formula, assumptions, page URL and date together so the calculation can be reviewed later.

Home value
450,000 currency
Current estimated market value of the home, not the original purchase price.
Mortgage balance
250,000 currency
Outstanding balance on the primary mortgage and any other liens.
Lender maximum combined loan-to-value
85 %
The maximum combined loan-to-value most home equity lenders allow, commonly 80-90%.
Desired draw amount
30,000 currency optional
Optional amount you want to borrow, to check what remains available afterward.

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Explain it like I'm 12

This calculator shows two numbers: the equity you already have in your home, and the smaller amount a lender would typically let you borrow against it, because lenders cap total borrowing below full home value.

Why people use this calculator

  • Home equity loan or HELOC planning: estimate how much could be borrowed before applying.
  • Debt consolidation planning: check whether available home equity could cover paying off higher-interest debt.
  • Home renovation budgeting: see how much borrowing room exists before committing to a project scope.
  • Net worth tracking: use current equity as one input into a broader net-worth calculation.

Common mistakes

  • Assuming the full equity amount is borrowable, when lenders cap total borrowing below 100% of home value.
  • Forgetting an existing second mortgage or HELOC, which reduces what a new lender will offer under the same combined loan-to-value limit.
  • Using an outdated or optimistic home value instead of a realistic current market estimate.
  • Treating the borrowable estimate as a guaranteed approval rather than a planning figure.

Citation sentence

CalculationTime calculates home equity as home value minus mortgage balance, and estimates maximum borrowable equity as home value multiplied by the lender's maximum combined loan-to-value percentage, minus the existing mortgage balance.

Formula

Current equity = home value − mortgage balance. Maximum borrowable = home value × maximum loan-to-value percent ÷ 100 − mortgage balance. Amount remaining after a draw = maximum borrowable − desired draw amount.

Worked example

For a 450,000 home with a 250,000 mortgage balance, current equity = 450,000 − 250,000 = 200,000. At an 85% maximum combined loan-to-value, maximum borrowable = 450,000 × 85 ÷ 100 − 250,000 = 132,500. If 30,000 is drawn, 102,500 remains available.

Professional note

Master's Tip: maximum borrowable is not the same as current equity. Lenders cap total borrowing (all liens combined) below full home value, so the borrowable figure is usually smaller than raw equity.

Regional and unit assumptions

Standard or basis: general combined loan-to-value arithmetic used by home equity loan and HELOC lenders. Actual limits, rates, fees and eligibility vary by lender, credit profile and jurisdiction.

Assumptions and limitations

Methodology & Accuracy

How this calculator is checked

CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.

Formula used

Current equity = home value − mortgage balance. Maximum borrowable = home value × maximum loan-to-value percent ÷ 100 − mortgage balance. Amount remaining after a draw = maximum borrowable − desired draw amount.

Standard or basis

Standard or basis: general combined loan-to-value arithmetic used by home equity loan and HELOC lenders. Actual limits, rates, fees and eligibility vary by lender, credit profile and jurisdiction.

Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.

Master's Tip

Master's Tip: maximum borrowable is not the same as current equity. Lenders cap total borrowing (all liens combined) below full home value, so the borrowable figure is usually smaller than raw equity.

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Questions

What is the difference between equity and borrowable equity?

Equity is simply home value minus what is owed. Borrowable equity is smaller, because lenders cap total borrowing at a maximum combined loan-to-value below 100%.

What loan-to-value limit should I use?

Check with a specific lender; 80-90% combined loan-to-value is common for home equity loans and HELOCs, but limits vary by lender, credit score and property type.

Is a home equity loan the same as a HELOC?

No. A home equity loan is a lump sum with a fixed schedule; a HELOC is a revolving credit line you draw from as needed. Both are typically capped by the same combined loan-to-value idea.

Does this calculator include interest or monthly payments?

No. It estimates how much could be borrowed against equity. Use a loan or amortization calculator once you know the rate and term you are offered.

Why is my available amount lower than expected?

Any existing second mortgage, home equity line, or lien reduces the amount left under the lender's maximum combined loan-to-value.

Calculation note

Combined loan-to-value limits exist because lenders want a buffer against falling home prices; borrowing right up to 100% of home value leaves no cushion if the market moves against the borrower.

Equity and borrowable equity are different numbers

Homeowners often assume they can borrow their full equity. Lenders instead cap total borrowing below full home value, which is why the borrowable figure is usually the smaller, more important number.

Existing liens stack against the same limit

A maximum combined loan-to-value applies to all loans secured by the home together, so an existing second mortgage or HELOC reduces what a new lender will offer.

A draw amount changes the remaining cushion

Checking the amount left after a planned draw helps avoid maxing out available equity in one transaction, keeping a buffer for future needs.

Sources and further readingConsumer Financial Protection Bureau — What is a home equity loan or HELOC?Federal Trade Commission — Home equity loans and credit lines