Home Equity Calculator
Calculate the equity in a property, your loan-to-value ratio, and how much could be released against it at a given maximum LTV.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →Equity is the part of a property that is genuinely yours: current market value minus everything secured against it. It grows two ways at once — through the principal in each mortgage payment, and through any change in the property value, which can move in either direction.
Loan-to-value is the same relationship expressed from the lender's side, and it is the number that governs what rates you are offered. Crossing below a threshold such as 80% or 60% frequently unlocks materially cheaper borrowing.
The formulas
Equity = current value − mortgage balance. Loan-to-value = balance ÷ value × 100. The most that can be released is (value × maximum LTV) − current balance, which is zero or negative when you are already at the limit.
Worked example
A property worth 450,000 with 260,000 outstanding has 190,000 of equity and an LTV of 57.8% — you own about 42% of it. If a lender will go to 80% LTV, the maximum loan is 360,000, so up to 100,000 could in principle be released.
Value is an estimate until someone pays it
Every figure here depends on the market value you enter, and a lender will use its own valuer rather than your estimate. Use recent completed sales of genuinely comparable properties, not current asking prices, which reflect hope rather than transactions.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
What is a good loan-to-value ratio?
Below 80% is comfortable in most markets and usually removes any mortgage insurance requirement. Rates typically improve again at 75% and 60%, so if you are close to a threshold it is often worth a small overpayment to cross it.
Does releasing equity mean I own less of my home?
Yes. Releasing equity increases the loan secured against the property, so the share you own falls and the monthly cost rises. The money is borrowing, not a windfall, and it is secured on your home.
Can equity go negative?
It can, if property values fall below the outstanding balance. This is usually only a practical problem if you need to sell or refinance while it lasts, since selling would leave the shortfall still owed to the lender.