Home Equity
Calculator
How much equity do you have, and what can you borrow? See your home equity, how much a lender could let you borrow against it, what a HELOC, home equity loan, cash-out refinance or reverse mortgage would cost, and your home's share of your whole net worth.
Read the full answer — method, rates and figures
Quick answer: Your home equity is $200,000 ($450,000 value − $250,000 owed; loan-to-value 56%). At a 85% combined loan-to-value limit you could borrow about $132,500 with a HELOC or home equity loan, or take about $110,000 in cash by refinancing to 80% of value; these limits are set by lenders, not law.
Your home is 41% of your $485,000 net worth; across all US households home equity is about 31.1% of net worth (derived from Census Bureau 2023 wealth tables), and median equity among owners aged 55–64 is $230,000. General information, not financial advice.
Home equity
$200,000
Loan-to-value
56%
HELOC room (85%)
$132,500
Share of net worth
41%
Your net worth is $485,000 and your home is 41% of it. For households aged 55–64, home equity is about 28.8% of total net worth, and the median owner has $230,000 of equity (Census Bureau, 2023). A cash-out refinance to 80% of value would free about $110,000.
What borrowing would cost
Lender limits and rates vary; the defaults are illustrative, so replace them with a real quote.
HELOC: about $313 a month interest-only while you draw. Home equity loan: about $478 a month for 15 years.
Written by Morgan, Richify's AI Mortgage Monitor — an AI author, presented as one · our editorial standards
Last reviewed 18 September 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
This is the textbook answer. Want to see this calculated against your actual accounts?
Connect them to Richify →Your home, mortgage and 401(k) in one number
Richify puts your property and its mortgage next to your 401(k), IRA and savings, revalues it as the market moves, and shows your equity and its share of your wealth over time. Free, no bank linking.
Track my home equity — FreeHow it works
Equity is value minus debt: what you would keep if you sold today and paid off the loans, before selling costs. Borrowing room is what a lender will let you add on top: the combined loan-to-value limit times the value, minus what you already owe. A cash-out refinance works the same way, except the new loan replaces the old one, so its limit applies to the whole balance.
Honest limits: US lenders set their own LTV caps, and they vary with credit score, property type and occupancy, so the caps here are inputs you should replace with a real quote. Borrowing room ignores income: a lender still has to be satisfied you can repay. The monthly figures use flat rates; a HELOC rate is variable and its payment rises when the draw period ends and principal repayment starts.
HELOC, home equity loan, cash-out refinance or reverse mortgage?
HELOC
Credit line, draw as needed
Variable rate; about $313 a month interest-only on $50,000 at 7.5%
Best for: Costs that arrive over time; keeps your first mortgage
Home equity loan
Lump sum
Usually fixed; about $478 a month over 15 years at 8%
Best for: One known cost; keeps your first mortgage
Cash-out refinance
Up to $110,000 at 80% LTV
One new, larger mortgage replaces the old one
Best for: When the new rate is close to yours; existing loan 12+ months old
Reverse mortgage (HECM)
Lump sum, line of credit or monthly
No monthly loan payment; the balance grows
Best for: Owners 62+ who cannot qualify on income
Payment figures use the rates and term you entered and the lower of your draw and your borrowing room. Interest on any of these is deductible only when the money buys, builds or substantially improves the home that secures it (IRS Publication 936). Model a refinance break-even with the refinance calculator and a new purchase with the mortgage calculator.
Borrowing against your home in retirement
Retirees often have plenty of equity and modest income, and that mismatch is where a HELOC application can fail: a lender must be satisfied you can make the payments, and a Social Security check alone may not be enough. A HECM reverse mortgage is built for that case. The youngest borrower must be 62 or older, the home must be their principal residence, and counseling with a HUD-approved counselor is required before closing. No monthly loan payment is due; the balance, with interest and fees, is repaid when the last borrower dies, sells or stops living in the home. You still pay property taxes, homeowners insurance and upkeep, and falling behind on them can make the loan due. Because the balance grows, a reverse mortgage uses up equity your heirs would otherwise inherit.
Before borrowing at all, check the rest of your plan: the retirement calculator shows how long savings and Social Security last, and home equity by age shows how much of net worth sits in the house at each stage of life.
How much home equity do Americans have, by age?
Across all households, home equity is about 31.1% of total net worth. The table shows median equity among homeowners, the share who own, and the equity share of each age group's total net worth (derived from published means).
| Age | Own | Median equity* | Share of net worth |
|---|---|---|---|
| Under 35 | 35.1% | $100,000 | 32.6% |
| 35–44 | 57.9% | $171,000 | 32.4% |
| 45–54 | 66.5% | $217,000 | 32.5% |
| 55–64 | 69.6% | $230,000 | 28.8% |
| 65+ | 75.3% | $250,000 | 31.1% |
| All | 62.3% | $203,000 | 31.1% |
U.S. Census Bureau, Wealth, Asset Ownership, & Debt of Households Detailed Tables: 2023 (Survey of Income and Program Participation (SIPP)), data year 2023, current dollars. *Median equity is among owners only. "Share of net worth" = mean equity among owners × share owning ÷ mean net worth, derived.
How to use this calculator
- Enter your home's realistic market value and everything still owed on it.
- Add your age and your other assets and debts, so the page can show the home's share of your net worth.
- Set your lender's limits and rates, or keep the illustrative defaults.
- Read your equity, your borrowing room, and the monthly cost of a HELOC draw or a home equity loan.
❓ Frequently Asked Questions
How much equity do I have in my home?
Home equity is your home's current market value minus everything you still owe on it: the mortgage balance plus any HELOC or second mortgage. A home worth $450,000 with $250,000 owed has $200,000 of equity, a loan-to-value (LTV) ratio of about 56%.
Use a realistic value from recent comparable sales or an appraisal, not the purchase price or the most hopeful online estimate. Equity grows as you pay down the loan and as prices rise, and it can shrink in a falling market without you borrowing a cent.
How much can I borrow against my house?
Lenders limit borrowing by combined loan-to-value (CLTV): everything secured on the home, old and new, divided by its value. Room = CLTV limit × home value − what you already owe.
At an 85% limit, a $450,000 home with $250,000 owed leaves $132,500 of room; at 80% it is $110,000. There is no single federal cap for HELOCs, so limits vary by lender, credit score and property.
Your income still has to support the payment: lenders assess your ability to repay, so a large equity balance alone does not guarantee approval.
HELOC vs home equity loan vs cash-out refinance: which is better?
A HELOC is a revolving line with a variable rate, usually interest-only during the draw period, good for costs that arrive over time. A home equity loan is a lump sum, usually at a fixed rate, with level payments, good for one known cost.
Both sit behind your existing mortgage, so they keep its rate. A cash-out refinance replaces your whole mortgage with a bigger one, which only makes sense if the new rate is not much worse than the old one; a conventional cash-out generally needs the existing loan to be at least 12 months old (Fannie Mae Selling Guide B2-1.3-03).
Is interest on a HELOC or home equity loan tax-deductible?
Only if you itemize and the money is used to buy, build or substantially improve the home that secures the loan (IRS Publication 936). Interest on a HELOC used for a car, tuition or debt consolidation is not deductible.
Deductible mortgage interest is limited to the first $750,000 of qualifying debt ($375,000 married filing separately), or $1 million for debt taken on before December 16, 2017.
How does a reverse mortgage compare with a HELOC in retirement?
A HECM reverse mortgage, the FHA-insured kind, requires the youngest borrower to be 62 or older and the home to be their principal residence, and every borrower must complete HUD-approved counseling first (24 CFR 206.33, 206.39, 206.41). It needs no monthly loan payment: the balance grows and is repaid when the last borrower dies, sells or moves out.
You must still pay property taxes and insurance. A HELOC keeps the loan smaller and cheaper but needs monthly payments and enough income to qualify, which can be hard on Social Security alone.
What share of US net worth is home equity?
Across all US households, home equity is about 31.1% of total net worth, derived from the Census Bureau's 2023 wealth tables (mean home equity among owners × the 62.3% who own ÷ mean net worth). For the typical owner it matters far more: median home equity among owners is $203,000, while median net worth for all households is $191,100.
Those two medians describe different groups, so they cannot be divided into a share, but they show how large the home is next to everything else a typical owner holds.
More Free Financial Calculators
Mortgage Calculator
Estimate monthly repayments, interest, and amortisation.
🔄Refinance Calculator
See how much you could save by switching lenders.
📈Compound Interest Calculator
Visualise how your savings grow over time.
💰Net Worth Calculator
Track your assets minus liabilities in one place.
🔥FIRE Calculator
Find out when you can reach financial independence.
💱Currency Converter
Convert between currencies with live exchange rates.
Further Reading
Your home, mortgage and 401(k) in one number
Richify puts your property and its mortgage next to your 401(k), IRA and savings, revalues it as the market moves, and shows your equity and its share of your wealth over time. Free, no bank linking.
Track my home equity — Free