Free Online Home Equity Calculator

Navigate the landscape of your finances better with our intuitive (and FREE) Home Equity Calculator. Find the value you have built up in your home, serving as a vital tool for future financial planning.

Home equity represents the current market value of a home minus the outstanding balance on the mortgage. As homeowners pay down their mortgage, or as the home’s value increases, the equity—the part of the home truly “owned” by the homeowner—increases. Our Home Equity Calculator is a straightforward tool designed to provide a quick estimate of this equity. By entering the estimated home value and the remaining balance on the mortgage, users can gain an insight into the portion of their home they truly own. Learn more about home equity.

Finally, we must also give some limitations about the calculator. While the Home Equity Calculator is a helpful instrument in financial planning, it’s important to recognize its limitations. This tool offers a simplified calculation that does not take into account other factors that could affect your total equity, such as second mortgages, home equity loans, or lines of credit secured by your home. Additionally, the calculator assumes that the value you provide is an accurate assessment of your home’s current market value. Market values can fluctuate based on a variety of factors including market conditions, home improvements, or depreciation due to aging or damage. For a comprehensive understanding of your home equity and the financial opportunities it might provide, consulting a financial advisor or real estate professional is recommended.

How To Use Our Home Equity Calculator


Input Your Home's Current Value

Enter the estimated current market value of your home. This is the price at which you could reasonably expect to sell your home in the current market. You might base this on recent sales of similar homes in your area, or you might have a recent appraisal to base this on.


Input Remaining Mortgage Balance

Next, enter the amount you still owe on your mortgage. This is the remaining balance that would need to be paid off if you were to sell your home.


Calculate and Evaluate the Output

The calculator will subtract your mortgage balance from your home's value to find your estimated home equity. This is the portion of your home's value that you truly own, and it represents wealth that you might be able to access through selling your home or through certain types of loans.


Let's See What The House Is Worth

Using Your Home Equity Information

Home equity is the portion of your property that you truly ‘own’, representing the difference between the market value of your home and what you owe on it. For many homeowners, it’s not just a number; it’s a potential financial catalyst. As your home equity grows, so do the opportunities that come with it. The calculated equity figure from the provided calculator can open a door to myriad financial strategies, and understanding how to harness this potential is essential for maximizing one’s financial health.

But why does home equity matter?

To begin with, home equity serves as a testament to a homeowner’s financial stability. Each mortgage payment made contributes to the ownership of a larger slice of the property. Over time, as property values appreciate and as more of the mortgage principal is paid off, this equity can become a significant asset. Furthermore, a solid equity base in a home can serve as a buffer against market downturns. If property values decline, those with substantial equity can still have a cushion, ensuring they are not ‘underwater’ on their mortgage.

How can you use quity strategically? Well there’s several strategies you can utilize.

  1. Home Equity Loans and Lines of Credit (HELOC): These are popular options for homeowners looking to tap into their home’s value. These financial products allow homeowners to borrow against their home equity. They can be a boon when funds are needed for substantial expenses, like home renovations, which in turn might increase the property’s value even more.

  2. Debt Consolidation: High-interest debts, such as credit card balances, can be consolidated using a home equity loan, typically at a much lower interest rate. This can save homeowners a significant amount in interest payments.

  3. Investment: If the conditions are right, one might use home equity as a stepping stone to purchase an investment property, thus diversifying their income streams.