Home Equity Calculator
How much equity you hold in your property.
Calculate home equity as the current property value minus the outstanding mortgage balance — what you'd actually walk away with on a sale.
What this tool does
Home equity is the cash portion of the property — value minus mortgage balance. Given property value and current mortgage balance, this calculator returns equity in cash terms plus the equity percentage as a share of total property value. The result illustrates how much of your property you own outright versus what you still owe. Property value and mortgage balance are the primary drivers; changes to either shift both your cash equity and percentage stake. A typical scenario: tracking equity growth after several years of mortgage payments, or assessing equity position before refinancing. The calculation does not account for selling costs, legal fees, property taxes, or maintenance expenses — it models the raw equity position based on current figures alone. The output is for financial illustration and planning reference.
Enter Values
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Formula Used
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Calculations or display — let us know.
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Home equity is the difference between what your property is worth and what you owe on it. A 400,000 property with a 180,000 mortgage has 220,000 of equity — 55% of the property. Equity is the source of funds for home-equity loans, downsizing, and the deposit on a next home.
Quick example
With property value of 400,000 and mortgage balance of 180,000, the result is 220,000.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Property Value and Mortgage Balance. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.
What's happening under the hood
Equity = current property value minus outstanding mortgage balance. Ignores selling costs. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
Why this matters before you sign
A mortgage is usually the biggest single financial commitment a person makes. The difference between a well-chosen product and a hasty one can run into tens of thousands over the life of the loan. Running the numbers here before committing is the cheapest form of due diligence available.
What this doesn't capture
The figure excludes arrangement fees, valuation costs, legal fees, insurance, and any early-repayment charges — those can add several thousand to the headline cost. Rate changes at renewal for fixed-term deals will shift the picture further. Use this for the core interest/principal math and add the other costs on top.
Where to go next
This calculation rarely sits alone in a planning exercise. If you're running these numbers, you'll probably also want the loan to value calculator, the equity buildup calculator, and the negative equity calculator — each one answers a different question in the same territory. Treating them as a set rather than in isolation usually produces a more honest picture.
With a property valued at £400,000 and a mortgage balance of £180,000, your home equity is 220,000.00.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
The calculator computes home equity by subtracting your outstanding mortgage balance from your property's current value. This models equity as the net ownership stake you hold in the property at a given point in time. The calculation assumes the property value and mortgage balance figures you provide are current and accurate. The model does not account for transaction costs such as agent fees or legal expenses that would be incurred if the property were sold, nor does it model property appreciation, depreciation, or changes to the mortgage balance over time. Results represent a static snapshot based on your inputs.
References
Frequently Asked Questions
Is equity the same as usable cash?
What about negative equity?
How do I raise my equity?
Count deposit separately?
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