Free Home Equity Calculator — HELOC Borrowing Limit
Estimate home equity, loan-to-value, and HELOC or home equity loan room. Enter home value and mortgage balance for a free snapshot of what you may borrow.
Include second mortgages, HELOCs already on the property, or tax liens.
Most lenders cap combined borrowing at 80%–90% of home value. The limit you choose affects your estimated borrowing capacity.
- Mortgage$280,000.00
- Borrowable equity$80,000.00
- Protected equity$90,000.00
Tap a cell to set home value and mortgage balance. Other liens are not adjusted.
| Home value | 50% owed | 60% owed | 70% owed | 80% owed | 90% owed |
|---|---|---|---|---|---|
| $250k | |||||
| $350k | |||||
| $450k | |||||
| $550k | |||||
| $650k |
HELOC vs home equity loan
Home equity line of credit (HELOC)
A HELOC is a revolving credit line secured by your home. You draw funds as needed during a set draw period — often 5 to 10 years — and pay interest only on the amount you actually use. Rates are usually variable, tied to a benchmark like the prime rate.
HELOCs suit ongoing or uncertain expenses: renovations in phases, tuition over several years, or an emergency fund backup. Flexibility is the main advantage, but variable rates can rise and minimum payments may jump when the repayment period begins.
Home equity loan
A home equity loan delivers a lump sum upfront with a fixed interest rate and fixed monthly principal-and-interest payments over a set term — typically 5 to 30 years. It behaves like a second mortgage with predictable costs from day one.
Home equity loans work well when you know the exact amount you need: a single renovation, debt consolidation, or a large one-time purchase. Fixed payments simplify budgeting, but you pay interest on the full amount even if you do not use all of it immediately.
How this calculator works
Home equity is your home's estimated market value minus what you still owe on the mortgage and any other liens. This calculator subtracts your entered balances from your home value to show how much equity you have built.
Your loan-to-value (LTV) ratio is total debt secured by the home divided by home value, expressed as a percentage. Lenders use LTV to gauge risk — lower LTV means more equity cushion. Most HELOC and home equity loan products cap combined borrowing at 80% to 90% of the home's appraised value.
The borrowing limit estimate applies your chosen LTV cap: (home value × LTV limit) − mortgage balance − other liens. Protected equity is what remains after accounting for both existing debt and the maximum additional borrowing allowed. The payment estimator compares interest-only HELOC costs against fixed home equity loan payments using standard amortization.
How to use this calculator
- 01Enter your estimated home value and current mortgage balance.
- 02Add any other liens if applicable, then select your lender's LTV limit.
- 03Review your home equity, LTV ratio, and estimated borrowing limit in the summary cards.
- 04Use the stacked bar to see how your home value splits between debt, borrowable equity, and protected equity.
- 05Expand the payment estimator to compare HELOC interest-only costs vs fixed home equity loan payments.
- 06Tap cells in the reference grid to explore borrowing limits at different home values and debt levels.