Buying & selling
Home Equity Calculator
Separate gross equity, potential sale proceeds, borrowing capacity and the cost of a proposed equity loan.
Calculate your result
What this calculator estimates
Estimate current equity after mortgages and liens. It combines the inputs below to produce Estimated home equity. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.
Worked example
Using the displayed sample assumptions, the calculator produces $305,000. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.
Inputs and assumptions
- Current property value — sample input: 750000 currency units
- First mortgage balance — sample input: 420000 currency units
- Second mortgage — optional — sample input: 0 currency units
- HELOC drawn balance — optional — sample input: 25000 currency units
- Other property liens — optional — sample input: 0 currency units
- Selling commission and variable costs — sample input: 5 %
- Legal and fixed selling costs — sample input: 2000 currency units
- Mortgage discharge / prepayment charge — optional — sample input: 0 currency units
- Your borrowing limit target — sample input: 80 %
- Refinance fees — optional — sample input: 0 currency units
- Proposed equity loan — optional — sample input: 0 currency units
- Proposed equity-loan annual rate — sample input: 7 %
- Proposed equity-loan term — sample input: 10 years
How to interpret the result
Include immediate work and transaction costs in the decision. Compare a conservative case with an expected case and keep a record of the assumptions used.
Common mistake to avoid
Do not confuse purchase price with total cash required. Local definitions, taxes, lending practices and measurement requirements can materially change the result.
Calculation details
Gross equity = value − all secured debts. Net sale equity also subtracts selling and discharge costs, before tax. Borrowing capacity = value × your LTV target − secured debt − refinance fees. The proposed loan uses level monthly amortization.
Results included
- Current gross home equity
- Total secured debt
- Equity percentage
- Combined loan-to-value
- Estimated selling and discharge costs
- Net sale equity before tax
- Gross borrowing capacity at your target
- Borrowing capacity after refinance fees
- Equity after proposed loan
- LTV after proposed loan
- Proposed loan monthly payment
- Proposed loan total interest
- Proposed loan total repayments
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Reviewed 2026-09-08.