Cost Calculator AI
Real Estate & PropertyEquity & 80% CLTV Capacity

Property Equity Calculator

Calculate your current net home equity in dollars, equity percentage share, Combined Loan-to-Value (CLTV) ratio, and estimated borrowable equity at an 80% LTV limit.

Current Market Value & Mortgage Liens

Home Equity Position
Estimated Net Property Equity
$200,000.00

Equity Share: 39.22% | Combined LTV: 60.78%

Total Debt & Property Liens$310,000.00
Primary Loan-to-Value (LTV)57.84%
Borrowable Equity (at 80% Max CLTV)$98,000.00

Property Equity & Borrowable Capacity Formula

Net Property Equity = Current Property Value โˆ’ (Primary Mortgage Balance + Other Property Liens)
  • Equity Percentage (%) = (Net Property Equity รท Current Property Value) ร— 100.
  • Combined Loan-to-Value (CLTV %) = (Total Debt & Liens รท Current Property Value) ร— 100.
  • Borrowable Equity at 80% LTV = max(0, (Current Property Value ร— 0.80) โˆ’ Total Debt & Liens).

Step-by-Step Worked Example

Scenario: Calculating net equity and borrowable HELOC capacity on a home worth $510,000 with a $295,000 first mortgage and a $15,000 existing lien

Calculation Steps:

  1. Total Debt & Liens = $295,000 + $15,000 = $310,000 (60.78% Combined LTV)
  2. Estimated Net Equity = $510,000 โˆ’ $310,000 = $200,000 (39.22% Equity Share)
  3. Borrowable Equity at 80% CLTV = ($510,000 ร— 0.80) โˆ’ $310,000 = $408,000 โˆ’ $310,000 = $98,000
Result: You have $200,000.00 in net property equity (39.22%), with up to $98,000.00 in borrowable equity at an 80% CLTV cap.

How to Use This Calculator

  1. 1Enter your propertyโ€™s current estimated fair market value.
  2. 2Enter your current primary mortgage payoff balance.
  3. 3Optionally enter any second mortgage, HELOC balance, or other property liens.

Assumptions & Limitations

  • Most conventional cash-out refinances and HELOCs cap Combined Loan-to-Value (CLTV) at 80% to 85% of appraised value.
  • Does not deduct hypothetical selling costs; use the Home Sale Proceeds Calculator if you plan to sell the property.

Frequently Asked Questions

How do I build property equity faster?

Homeowners build equity in two ways: by reducing their loan balance (through regular amortization or extra principal payments) and by increasing the propertyโ€™s market value (through market appreciation or high-ROI home improvements).

Why canโ€™t I borrow 100% of my home equity?

Lenders require homeowners to retain an equity cushion (typically 15% to 20% of the homeโ€™s value) to protect against market price declines and foreclosure costs.

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