Projected home equity growth
Property value minus projected secured debt
United States · USD
How Much Equity Do You Have in Your Home?
Estimate how much of your home you own and explore how much equity may remain available under a selected borrowing limit.
Target-equity timeline
Estimated from the projection assumptions above
Selected target—
Current projected starting point—
Estimated target date—
Gap to target—
Home-value sensitivity
Estimated equity after proposed borrowing and planned principal paydown
| Value change | Property value | Secured debt | Home equity | Equity percentage | Combined LTV |
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Year-by-year equity projection
Includes estimated first-mortgage amortization and the proposed home-equity loan
| Year | Property value | First mortgage | Home-equity loan | Total secured debt | Home equity | Combined LTV |
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Planning estimate only—not an appraisal, credit decision or commitment to lend. A lender may use a different property value and CLTV method. Interest, payments, product fees and tax consequences are not calculated.
Measure equity before considering another loan
Home equity is an estimate of property value minus outstanding debt secured by the home. With a $480,000 value, a $285,000 first mortgage, a $25,000 second mortgage and $10,000 drawn on a HELOC, estimated equity is $160,000. This represents a balance‑sheet figure before selling costs or taxes. It is not cash available without a sale or a new borrowing arrangement.
Why unused HELOC credit matters
The same home has $320,000 of drawn debt. If the HELOC limit is $40,000, total committed exposure is $350,000. At an illustrative 80% ceiling, the maximum modelled debt is $384,000, leaving $34,000 of additional planning room after committed exposure. The unused $30,000 in the existing line is shown separately. Do not combine unused credit with new borrowing room or assume both amounts would be approved.
Separate the lender target from your own cushion
The editable CLTV ceiling and personal equity buffer are two distinct tests. Borrowing room under both deducts the full HELOC limit. In contrast, retained equity and proposed CLTV use drawn balances plus the proposed new borrowing. This difference explains why a proposal may fit within the drawn‑debt ceiling yet exceed the more conservative room after committed credit. Review both measures when evaluating a scenario.
What the proposed loan payment covers
The payment estimate models a new installment loan at the entered constant rate. It does not model a HELOC draw period or future rate resets. Percentage and fixed costs reduce net cash proceeds rather than increasing the new principal. Add payments on existing loans when considering the household commitment. Because the home secures the borrowing, repayment difficulty can put the property at risk.
Read the projection assumptions
The annual projection amortizes the first mortgage and the proposed new loan using their entered rates and payments. Existing second‑mortgage and drawn HELOC balances remain constant. Immediate principal paydown reduces the first mortgage in the projection; the separate one‑off property‑value change is not carried into it. Annual growth compounds from the current value, and target dates identify the first annual row meeting the goal. These are scenarios, not forecasts or lender valuations.
Home equity calculator FAQ
What is the difference between equity and borrowing room?
Equity subtracts drawn secured debt from the property value. Borrowing room applies the selected ceiling and deducts committed exposure, including the full HELOC limit. Neither amount is a lending approval.
Does an unused HELOC reduce my equity?
Undrawn credit does not reduce the dollar equity estimate. However, this calculator counts the full line limit when estimating committed exposure and additional borrowing room.
What does the new-loan payment include?
It models only the proposed additional installment loan at the entered rate and term. Existing mortgage payments and HELOC payments need to be budgeted separately.
Are borrowing costs financed?
No. In this tool, percentage and fixed costs are deducted from the proposed loan to estimate net proceeds. They do not increase its principal.
How are debts treated in the annual projection?
The first mortgage and proposed loan amortize using the entered assumptions. Existing second-mortgage and drawn HELOC balances remain constant. The projection is not a complete schedule for every debt.
Why can the one-off scenario differ from the annual projection?
They use different value assumptions. The annual projection compounds annual growth from the current value and does not include the separate one-off value change. Immediate principal paydown is applied to the first mortgage in the projection.
Can the estimated equity be negative?
Yes. If drawn secured debt exceeds the entered home value, equity is negative. A lower property value does not itself reduce the debt owed.