Home Equity Calculator: See How Much Equity You've Built in Your Home
Your home is more than a place to live. For most families it is their largest financial asset, quietly building wealth every month. Enter two numbers below for an instant estimate of your equity, your loan-to-value ratio, and how much you could potentially borrow.
Calculate your home equity
Enter your numbers and your results update instantly.
Your estimated home equity
$150,000
That is 37.5% of your home value
Loan-to-value (LTV)
62.5%
Available at 80% LTV*
$70,000
Your loan balances are higher than your home value, so equity is currently $0. Talk to us about your options.
Put your equity to work*80% LTV is a common baseline. Farmers Bank of Kansas City Mortgage offers LTV up to 100% in some situations, so your available equity may be higher. Estimates are for illustration only.
How to Use This Home Equity Calculator
Calculating your home equity takes less than a minute. The calculator instantly shows your equity in dollars, your equity as a percentage of your home value, your loan-to-value ratio, and the amount you could potentially access at 80% LTV, a common industry baseline. Farmers Bank of Kansas City Mortgage offers LTV up to 100% in some situations, so your actual borrowing power may be even higher.
Estimate your home value
Use a recent appraisal, comparable sales in your neighborhood, or an online home value tool. In many markets, values have risen significantly in recent years, so your equity may be higher than you think.
Enter your mortgage balance
Your current payoff amount, found on your most recent statement or your lender's online portal. Include any HELOC or second mortgage in the optional field.
See your equity instantly
Your results update in real time as you type. There are no forms to submit, no personal details to enter, and no impact on your credit.
What Is Home Equity?
Home equity is the portion of your home that you truly own. It is the difference between your home's current market value and everything you still owe on it.
For example, if your home is worth $400,000 and you owe $250,000 on your mortgage, you have $150,000 in home equity. That is 37.5% of your home value working for you.
Your equity grows two ways: every mortgage payment reduces your principal balance, and rising property values increase what your home is worth. Homeowners who bought several years ago often discover they are sitting on far more equity than they realized.
What Is Loan-to-Value (LTV) and Why Does It Matter?
Your loan-to-value ratio compares what you owe to what your home is worth. If you owe $250,000 on a $400,000 home, your LTV is 62.5%.
Lenders use LTV to determine how much you can borrow against your home. Many home equity loans and HELOCs allow you to borrow up to a combined 80% of your home value. In the example above, 80% of $400,000 is $320,000. Subtract the $250,000 owed and you could potentially access up to $70,000 in equity.
Here is where Farmers Bank of Kansas City Mortgage stands apart: we offer LTV up to 100% in some situations. Using that same example, qualifying at 100% LTV could open up as much as $150,000, more than double the standard limit. Talk with our team to find out which programs and LTV limits you qualify for.
5 Smart Ways Homeowners Put Their Equity to Work
Once you know how much equity you have, the next question is what to do with it. Homeowners commonly use a HELOC or home equity loan to:
- Consolidate high-interest debt. Home equity rates are typically far lower than credit card rates, which can mean one smaller monthly payment.
- Fund home improvements and renovations. Remodeling with equity can increase your home value, reinvesting your equity back into the asset itself.
- Cover major expenses. Tuition, medical bills, or other large planned costs.
- Create a financial safety net. A HELOC can sit unused at a $0 balance, ready as an emergency line of credit.
- Invest in opportunities. A down payment on an investment property, or capital for a business.
HELOC vs. Home Equity Loan: Which Is Right for You?
Both let you borrow against your equity, but they work differently. Not sure which fits your goals? Our lending team will walk you through both options with no pressure and no obligation.
Home Equity Line of Credit (HELOC)
Flexible · Draw as needed
Works like a credit card secured by your home. You are approved for a credit limit, draw only what you need, and pay interest only on what you use.
Home Equity Loan
Lump sum · Fixed payment
A home equity loan delivers a one-time lump sum with a fixed rate and a predictable monthly payment for the life of the loan.
Why Homeowners Choose FBKC Mortgage
Farmers Bank of Kansas City Mortgage is backed by more than a century of community banking, combining competitive rates and low fees with the kind of responsive, personal service national lenders cannot match. Our processing and underwriting are handled in-house, which means faster answers and a smoother path from application to closing. We offer LTV up to 100% in some situations, so you can access more of the equity you have worked hard to build. Complete the entire process online, and a real loan officer is always a call, email, or text away.
118+
Years of community banking
In-house
Processing & underwriting
100%
LTV available in some situations
Home Equity Calculator FAQs
How much equity do I have in my home?
Subtract everything you owe on your home (mortgage balance plus any second liens) from its current market value. If your home is worth $350,000 and you owe $200,000, you have $150,000 in equity. Use the calculator above for an instant estimate including your LTV and potential borrowing power.
How much equity can I borrow against?
Most lenders allow you to borrow until your combined loans reach about 80% of your home value, though limits vary by program and borrower profile. Farmers Bank of Kansas City Mortgage offers LTV up to 100% in some situations, which can significantly increase your available equity. For a conservative estimate, multiply your home value by 0.80 and subtract your current loan balances. The calculator above does this math for you automatically.
How accurate is a home equity calculator?
It is as accurate as the numbers you enter. Your mortgage balance is exact, but your home value is an estimate until a formal appraisal is completed during the loan process. Treat the result as a strong starting point, not a final loan amount.
Do I need an appraisal to find out my home equity?
Not for an estimate. This calculator gives you an instant answer at no cost. A professional appraisal or valuation is typically required later, when you formally apply for a home equity loan or HELOC.
How fast does home equity build?
Equity grows with every principal payment and whenever your home value rises. In appreciating markets, homeowners can build equity much faster than their amortization schedule alone would suggest, which is why it is worth recalculating your equity every year or two.
Does checking my home equity affect my credit score?
No. Using this calculator requires no personal information and no credit check. Your credit is only checked if you decide to apply for a loan.
What credit score do I need for a home equity loan or HELOC?
Requirements vary by program, but stronger credit generally unlocks better rates and higher borrowing limits. The best way to know where you stand is to talk with one of our loan officers. A quick conversation can tell you exactly what you qualify for.
Ready to Put Your Equity to Work?
You have done the math. Now see what your equity can actually do. Whether you are consolidating debt, renovating your home, or building a financial cushion, Farmers Bank of Kansas City Mortgage offers competitive home equity solutions, LTV up to 100% in some situations, and fast in-house underwriting with service that treats you like a neighbor, not a number.
Put your equity to workThis calculator provides estimates for educational purposes only and is not a loan offer, approval, or appraisal. Loan amounts, rates, and terms are subject to credit approval and program guidelines. Farmers Bank of Kansas City Mortgage is a division of Farmers Bank & Trust. Equal Housing Lender. Member FDIC. NMLS #613839.