Home Equity Calculator
Equity grows two ways: the part you control by paying down the balance, and the part you do not by way of the market. Separate them so you know how much of your plan depends on prices going up.
Your home today
Equity today
$120,000
80% loan-to-value
Equity in 10 years
$414,770
Home value $809,612, balance $394,842.
| Year | Home value | Loan balance | Equity |
|---|---|---|---|
| 1 | $618,250 | $473,748 | $144,502 |
| 3 | $656,431 | $459,959 | $196,472 |
| 5 | $696,970 | $444,262 | $252,708 |
| 10 | $809,612 | $394,842 | $414,770 |
| 15 | $940,459 | $326,504 | $613,955 |
| 20 | $1,092,453 | $232,005 | $860,448 |
| 30 | $1,474,105 | $0 | $1,474,105 |
What this says
Equity comes from two places: the balance you pay down, which you control, and the value change, which you do not. At 3% appreciation your equity goes from $120,000 today to $414,770 in ten years.
Set appreciation to 0% to see the part that comes only from payments. Equity is not cash until you sell or borrow against it, and both have costs.
Assumptions behind these numbers
- The loan is modeled as amortizing over the remaining years you entered, plus any extra principal.
- Property taxes, homeowners insurance, HOA dues and maintenance are estimates you can change; actual amounts vary by property and municipality.
- Home appreciation, rent growth and investment returns are assumptions, not predictions. Real markets move up and down.
- Mortgage insurance figures are estimates. Actual pricing depends on the lender, the mortgage insurer and your credit profile.
- Results ignore income tax effects, such as any deduction for mortgage interest or property taxes.
- Interest rates shown are averages or your own entries, not a rate quote or lock.
Keep going
Educational only: The calculators and information on this website are for educational and illustrative purposes only. Results are estimates based on the information and assumptions entered and are not a loan offer, commitment to lend, financial advice or guarantee of eligibility, rates, costs or savings. Actual loan terms, rates, fees, mortgage insurance and qualification requirements vary by borrower, property, lender and loan program. Speak with a licensed mortgage professional for personalized information.