When to use this calculator
Equity is an estimated ownership value rather than cash immediately available to spend or borrow.
Explore the mortgage & property calculators for other questions in this topic. For a related calculation, use the Loan to Value Calculator: Compare secured borrowing with the property value supporting it.
PUTTING IT INTO PRACTICE
Home Equity: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Property value | 250,000 |
| Secured loan balance | 180,000 |
| Result | 70,000 currency units |
- Check the input labels and enter the example values above.
- Apply the relationship: Equity = property value − secured loan balance.
- The result is 70,000 currency units, rounded for display.
How to interpret your result
Selling fees, penalties and taxes are excluded. Equity can be negative.
Separate property price, deposit and financed amount. Gross rental yield excludes operating expenses, whereas net yield depends on the costs you include. Equity is an estimated asset value rather than immediately available cash.
Frequently asked questions
Are rental yield and property return the same?
No. Yield measures rental income relative to a property value or cost. Total return can also include changes in value and transaction costs.
When is the home equity calculator useful?
Equity is an estimated ownership value rather than cash immediately available to spend or borrow.
How do I use the home equity calculator?
Enter property value, secured loan balance. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Equity = property value − secured loan balance.
What should I check before using the result?
Selling fees, penalties and taxes are excluded. Equity can be negative.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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