Enter your home's current estimated value, your primary mortgage balance, and any second lien balance (an existing HELOC or home equity loan) if applicable. Set a target loan-to-value percentage — 80% is the most common lender ceiling, though some lenders go to 85% or higher for well-qualified borrowers. Optionally, set an annual appreciation rate and a number of years to see a projected equity figure.
Worked example: $450,000 home value, $280,000 primary mortgage, no second lien, 80% target LTV, 3% annual appreciation projected 5 years forward. Current equity = $450,000 − $280,000 = $170,000. Current LTV = $280,000 ÷ $450,000 = 62.2%, meaning 37.8% equity. Maximum borrowable at 80% target LTV = ($450,000 × 80%) − $280,000 = $360,000 − $280,000 = $80,000. Projected value after 5 years at 3% annual appreciation = $450,000 × 1.03⁵ = $521,673. Assuming the mortgage balance stays roughly level (a simplification — see limitations below), projected equity = $521,673 − $280,000 = $241,673, or 46.3% equity.
A second example, smaller balance: $200,000 home value, $100,000 primary mortgage, no second lien, 85% target LTV, 4% appreciation over 10 years. Current equity = $100,000 (a clean 50% LTV). Maximum borrowable = ($200,000 × 85%) − $100,000 = $70,000. Projected value after 10 years at 4% = $200,000 × 1.04¹⁰ = $296,049. Projected equity (balance held level) = $296,049 − $100,000 = $196,049, or 66.2% equity — appreciation alone, with no extra principal payments, moved this homeowner from 50% to 66% equity over the decade.
If you're considering actually borrowing against that equity, the HELOC payment & draw calculator models the interest-only draw period and later repayment schedule on the borrowable amount this calculator shows. And if the reason you're tapping equity is to fund a renovation, check the home renovation ROI calculator first — it compares the project's cost against real 2026 resale-value benchmarks so you can see whether the borrowed amount is likely to come back at sale.