What is LTV ratio and why does it matter?

Loan-to-Value = mortgage balance ÷ home value. LTV affects your interest rate, ability to refinance, and HELOC eligibility. At 80% LTV or below, you typically avoid PMI. Most lenders cap HELOC at 85% combined LTV (mortgage + HELOC).

When can I cancel PMI?

By law (Homeowners Protection Act), you can request PMI cancellation when your LTV reaches 80% based on original value. Lenders must automatically cancel at 78%. Some lenders allow early removal based on a new appraisal if market value has increased significantly.

HELOC vs. home equity loan — which is better?

HELOC: variable rate, draw as needed (like a credit card), interest-only phase. Home equity loan: fixed rate, lump sum, immediate principal repayment. HELOCs suit ongoing expenses (renovations); home equity loans suit one-time needs (debt consolidation).

Can I access my equity without refinancing?

Yes — HELOC and home equity loans let you borrow against equity without changing your primary mortgage. This is often preferable when your current mortgage rate is lower than today's refinance rates.

Home Equity Calculator — Current Equity & LTV | KalkWise

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the home equity calculator — current equity & ltv?

In short

Home equity = current market value − remaining mortgage balance. If your home is worth $450,000 and you owe $280,000, you have $170,000 in equity (37.8%). Most lenders allow you to borrow up to 85% LTV via a HELOC or home equity loan, meaning you could access up to $102,500 in this example.

Calculates current home equity, loan-to-value ratio (LTV), equity percentage, and maximum HELOC/home equity loan borrowing capacity.

How to use this calculator

1Enter your home's current estimated market value.
2Enter your remaining mortgage balance.
3The calculator shows equity, LTV ratio, and maximum HELOC availability.

The formula

equity=home value−mortgage balance

LTV=mortgage balancehome value×100

Equity = V − M; LTV = M ÷ V × 100; Max HELOC = V × 0.85 − M

V: — Home value
M: — Mortgage balance

Worked example

The scenario

$500,000 home value, $320,000 remaining mortgage.

gives

The result

Equity = $180,000 (36%). LTV = 64%. Max HELOC (at 85% LTV) = $105,000.

Common use cases

Determine if you have enough equity for a HELOC or cash-out refinance.
Track equity growth as your home appreciates and you pay down principal.
Evaluate whether to remove PMI (typically removed at 80% LTV).
Plan a home renovation funded by equity.

Limitations & assumptions

Home value is your estimate — actual appraisal may differ.
Most lenders require 15–20% equity (80–85% max LTV) for HELOCs and home equity loans.
HELOC approval also depends on credit score, income, and DTI ratio.
Cash-out refinances replace your existing mortgage with a larger one at current rates, which may be higher.

Frequently asked questions

Use online tools like Zillow Zestimate or Redfin Estimate as a starting point, but they can be off by 5–15%. For a more accurate figure, request a comparative market analysis (CMA) from a local real estate agent or pay for an appraisal ($400–700).

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.

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