Home Equity Calculator: Estimate Usable Equity & Pick the Right Next Step
This calculator helps you estimate your current equity and a practical “usable equity” range based on a target combined loan-to-value (LTV). It’s not a lender quote—think of it as a clear starting point to understand what you might be able to access and which option (HELOC, Home Equity Loan, or Cash-Out Refinance) fits your goal.
For many homeowners, the biggest confusion is the difference between total equity and borrowable equity. Total equity is your home value minus what you owe. Borrowable equity is the amount you might access while still staying under lender limits. Use the calculator to get both numbers, then explore your best path: flexible HELOC, fixed-payment home equity loan, or a mortgage replacement via cash-out refinance.
Disclosure: We may earn a commission if you choose a lender through affiliate links or partner placements. This calculator is educational.
Total equity vs usable equity
Total equity is what you “own” on paper. Usable equity estimates what you might borrow while staying under typical lender limits.
LTV drives borrowing power
Loan-to-value is the main guardrail: higher LTV usually means less headroom and tighter underwriting.
Pick the product to match the goal
HELOC is built for flexibility, fixed loans for predictable payments, and cash-out refinance for one-loan restructuring.
Which Option Usually Fits Best?
The “right” choice depends on how you plan to use the money and how much certainty you want in your monthly payment. Use this quick guide as a starting point, then review the full pages for deeper comparisons.
| Your goal | Often a strong fit | Why |
|---|---|---|
| Phased renovation / ongoing expenses | HELOC | Draw funds as needed; pay interest on what you use |
| One-time, fixed-cost expense | Home Equity Loan | Lump sum + predictable payments |
| Restructure mortgage + take cash | Cash-Out Refinance | One new mortgage can simplify the stack |
Smart Use Reminder (Read This Before Borrowing)
Home equity can lower borrowing costs compared to unsecured credit, but it turns your home into collateral. A healthy approach is: keep a buffer, borrow only what you can repay comfortably, and avoid using equity to fund recurring lifestyle spending. If you’re consolidating debt, pairing the new loan with a payoff plan and a spending reset is what makes the strategy work.
Reminder: missed payments can put the home at risk of foreclosure. This page is educational, not financial advice.