Home Equity Calculator — Calculations & Slabs for FY 2026-27

Home equity is the portion of your property that you truly own. It is calculated by taking the current market value of your home and subtracting all outstanding loan balances (like first mortgages, second mortgages, or HELOCs) secured by the home.

You can increase your equity by making extra payments toward your mortgage principal, making smart home improvements that raise your property value, or naturally through neighborhood market appreciation.

CLTV is a percentage that compares your total home debt to your home's total value. For example, if your home is worth $300,000 and you have a first mortgage of $200,000 and a HELOC of $10,000, your total debt is $210,000, making your CLTV ratio 70%.

Most banks require you to maintain at least 15% to 20% equity in your home (meaning a maximum CLTV of 80% to 85%) to borrow against your home via a HELOC or home equity loan.

Yes. If home values in your area decline significantly, the market value of your property could fall below what you owe on your mortgage. This situation is referred to as having negative equity, or being 'underwater' on your loan.