How to calculate home equity
Value minus every dollar secured by the house. That is the stake. It is not the amount you can take.
The formula
Home equity = current value − all debt secured by the property. A first mortgage counts. So does a HELOC balance, a home equity loan, a judgment lien, and a tax lien. Leaving one of those out overstates the stake.
Equity percent = equity ÷ value. A $410,000 house with $220,000 of secured debt has $190,000 of equity, about 46%.
Value is an estimate until someone defends it
An automated estimate is a starting number. A lender appraisal, a broker price opinion, or a closed sale is a different number. The calculator on this site returns an estimate, not an appraisal.
Educational only. Not a lender, and not financial, tax, or legal advice.