You can calculate your home’s equity by subtracting your current loan balance from what you think your home is worth. Our home equity loan calculator does the extra math to determine how much of that equity can be used for a home equity loan.
You only need three pieces of information to start crunching numbers:
- Your home’s most recent appraised value (or estimated value). Use LendingTree’s home value estimator to get a ballpark value.
- Your outstanding mortgage balance. Grab your current mortgage statement to get this info.
- Your credit score range. If you don’t already know your credit score, you can get a free credit score online
A note about your maximum loan amount: Our calculator limits you to an 85% loan-to-value (LTV) ratio, the industry standard set by most home equity lenders. That means the balance of both your current mortgage and new home equity loan can’t exceed 85% of your home’s value. However, some specialized home equity lenders let you borrow up to 100% of your home’s value.
Our home equity loan calculator does the math for you. If you prefer to run the numbers yourself, here’s the formula we use:
- Multiply your home’s value by 85% (0.85)
- (Subtract any first mortgage payoff balance)
- The result is your potential home equity loan amount