About
Home equity = current value - what you owe. Most lenders cap HELOC at 85% combined LTV; cash-out refi at 80%. Above 20% equity unlocks borrowing options + removes PMI on conventional loans.
Three current numbers anchor the math. First, Fannie Mae and Freddie Mac's conforming loan limit is $806,500 in 2026 for most US counties ($1,209,750 in high-cost areas like NYC and the Bay Area). Above that you are in jumbo territory with stricter LTV. Second, conventional PMI is automatically cancelled by federal law (HPA 1998) once your scheduled balance drops to 78% LTV based on the original price, or you can request cancellation at 80% LTV with a current appraisal. Third, FHA mortgage insurance (MIP) is permanent for loans originated on or after 3 June 2013 if you put less than 10% down, so building "20% equity" does not remove FHA MIP. Cash-out refi typically caps at 80% LTV (conventional) or 80% (FHA), but HELOCs from credit unions can stretch to 90% or even 95% CLTV at higher rates. The current Prime Rate of 7.5% is the headline benchmark; most HELOCs price at Prime plus 0-2%.
Formula
Frequently asked questions
How accurate is the Home Equity Calculator?
It applies the standard formula. Accuracy is limited only by your input precision. For decisions with material consequences (taxes, medical, legal, structural), use the result as a starting point and verify with a qualified professional in the relevant field.
Is the Home Equity Calculator free to use?
Yes. 100% free, no signup, no payment, no API key. The site is funded by display ads around the tool but not inside the calculation flow.
Are my inputs saved anywhere?
No. All inputs stay in your browser tab. Closing the tab discards them. The site uses Google Analytics for traffic measurement (anonymized) but the analytics never see what you type into the form.
Can I use the Home Equity Calculator on my phone?
Yes. The tool is responsive and tested on iOS Safari, Android Chrome, and major desktop browsers. Touch targets meet Apple's 44pt and Google's 48dp minimum.
Does the Home Equity Calculator work offline?
Yes. Once the page has loaded, it works without internet. The calculation runs in JavaScript on your device.
How do I report a bug or suggest improvement to the Home Equity Calculator?
Email hi@3tej.com with the URL of this page and a description of what you saw vs expected. We typically respond within 72 hours.
Can I share results from the Home Equity Calculator?
Take a screenshot or copy the output. The page doesn't generate shareable URLs for specific calculations - inputs stay in your browser only.
Why are the results different from another home equity tool?
Most likely: different formula assumptions, different default values, different rounding rules, or different applicable rates. Check the methodology if both tools document it. Both can be valid for different scenarios.
Is the Home Equity Calculator accurate?
The Home Equity Calculator applies the standard formula for home equity. Accuracy is limited only by your input precision. For decisions with material consequences, use the result as a starting point and verify with a qualified professional or the relevant official source.
Is the Home Equity Calculator free?
Yes. 100% free, no signup, no payment, no API key. The site is funded by display ads that appear around the tool but not inside the calculation flow.
Are my inputs saved?
No. Inputs stay in your browser tab. Closing the tab discards them. The site uses Google Analytics for traffic measurement (anonymized) but does not see what you type into the form.
How do I estimate "current value" without paying for an appraisal?
Three free anchors. Pull Zillow's Zestimate and Redfin's Estimate and take the midpoint, since each model is biased the other way in most markets. Cross-check against recent sold comps within 0.5 miles, similar bed/bath count, and within the last 90 days. Your county assessor's site shows last assessed value, which usually trails market value by 5-15%. For a lending decision you will need a paid appraisal ($500-700 in 2026), but for sizing a HELOC the midpoint estimate is usually within 5%.
Is HELOC interest still tax-deductible in 2026?
Only if the proceeds are used to "buy, build, or substantially improve" the same home that secures the loan, per the Tax Cuts and Jobs Act rules still in force through 2025 and extended into 2026. Using HELOC funds to consolidate credit-card debt, pay tuition, or buy a car kills the deduction, even though the loan itself is secured by your home. Total acquisition + home-improvement debt is also capped at $750,000 ($375,000 if married filing separately) for the mortgage-interest deduction.
How to use the Home Equity Calculator
The Home Equity Calculator is a browser-based tool that runs entirely on your device. Inputs you enter never reach a server - all calculations happen client-side in JavaScript. This means:
- Privacy: nothing is logged, sent, or stored by 3Tej. Inputs disappear when you close the tab.
- Speed: results update as you type. No network round trip.
- Offline use: once the page is cached, it works without internet.
- No signup: no account, no email, no rate limits.
Step by step
- Enter your inputs in the form above. Each field is labeled with its unit (currency, percent, kg, etc.) and the expected range.
- Read the result as it updates. The number reflects the formula commonly accepted in Home Equity-related calculations.
- Adjust to see sensitivity: change one input at a time and watch how the output moves. This is the fastest way to understand which variable matters most.
- Copy or screenshot the result for later reference. The page state persists for the session if your browser allows it.
When you would use this
- Quick estimates: when you need a number now and don't want to open a spreadsheet.
- Sensitivity analysis: testing how a result changes as inputs vary, before committing to a real-world decision.
- Comparison: running the same calculation with different inputs to compare options side by side.
- Learning: building intuition for how the underlying math behaves.
- Documentation: capturing a snapshot of inputs and outputs at a point in time.