Home Equity Calculator
A home equity calculator determines how much ownership stake you have in your home by subtracting your mortgage balance from your home's current market value.
Home Equity Formula
Home Equity = Current Home Value - Mortgage Balance
Equity Growth Over Time
$300,000 home, 20% down, 30-year mortgage at 7%:
| Year | Home Value (3% appreciation) | Mortgage Balance | Equity |
|---|---|---|---|
| 0 | $300,000 | $240,000 | $60,000 |
| 5 | $347,782 | $223,724 | $124,058 |
| 10 | $403,175 | $201,435 | $201,740 |
| 15 | $467,380 | $170,795 | $296,585 |
| 20 | $541,833 | $128,742 | $413,091 |
| 30 | $728,180 | $0 | $728,180 |
Home Equity Calculator Implementation
``javascript
function calculateHomeEquity(originalPrice, downPayment, rate, termYears, yearsOwned, appreciationRate) {
const loan = originalPrice - downPayment;
const monthlyRate = rate / 100 / 12;
const totalPayments = termYears * 12;
const paymentsMade = yearsOwned * 12;
const monthlyPayment = loan * monthlyRate / (1 - Math.pow(1 + monthlyRate, -totalPayments));
// Calculate remaining balance
let balance = loan;
for (let i = 0; i < paymentsMade; i++) {
const interest = balance * monthlyRate;
const principal = monthlyPayment - interest;
balance -= principal;
}
// Calculate appreciated home value
const currentValue = originalPrice * Math.pow(1 + appreciationRate / 100, yearsOwned);
const equity = currentValue - balance;
const equityPercent = (equity / currentValue) * 100;
return {
currentValue: currentValue.toFixed(2),
mortgageBalance: balance.toFixed(2),
equity: equity.toFixed(2),
equityPercent: equityPercent.toFixed(1) + '%'
};
}
console.log(calculateHomeEquity(300000, 60000, 7, 30, 10, 3));
// { currentValue: '403175', mortgageBalance: '201435', equity: '201740' }
``
Using Home Equity
Equity can be accessed through selling, cash-out refinancing, home equity loans, or HELOCs. Consider your long-term goals before borrowing against your equity.