Online home equity calculators

Yes! If you're looking to buy a house in the U.S., there are several good free online calculators that can help you estimate your borrowing power — how much a mortgage lender might let you borrow and how much house you can comfortably afford.

One quick distinction: a home affordability calculator is probably what you need if you're buying a house. A home equity calculator is generally used to estimate how much of a property you already own financially.

My top 3 online calculators

1. Bankrate

(Best overall starting point)

Estimates your affordable home price based on income, monthly debts, down payment, mortgage rate and loan term. It also helps account for property taxes and insurance.www.bankrate.com+1

Try Bankrate's affordability calculator

2. NerdWallet

Best for understanding your finances

Includes income, debt payments, recurring expenses, down payment, property taxes, insurance and other housing costs. Useful for comparing a comfortable budget with a more aggressive borrowing limit.www.nerdwallet.com+1

Try NerdWallet's affordability calculator

3. Zillow

Best for connecting your budget to home listings

Its affordability calculator estimates a purchase budget, while its BuyAbility tool offers a more personalized estimate using your financial details and current mortgage rates.www.zillow.com+1

Try Zillow's affordability tool

What determines your borrowing power?

Lenders typically consider these five things:

• Gross annual household income — before taxes.
• Monthly debt payments — car loans, student loans, credit cards and other debts.
• Available down payment — including savings you can use toward closing costs.
• Credit score — which affects your eligibility and mortgage rate.
• Total monthly housing costs — mortgage principal and interest, property taxes, homeowners insurance, mortgage insurance and HOA fees, if applicable.

Your debt-to-income ratio (DTI) is particularly important because it compares your monthly debt obligations with your gross monthly income.www.nerdwallet.com+1

Want me to estimate your borrowing power?

I can help you work out a rough estimate of how much you might be able to borrow and a realistic home price range. You don't need to provide identifying or account information.

Enter approximate figures in U.S. dollars.

1. Gross annual household income

[Input placeholder: e.g. 120000] (Current value unavailable.)

2. Total monthly debt payments

[Input placeholder: e.g. 650] (Current value unavailable.)

Include car loans, student loans and credit card minimums.

3. Cash available for down payment and closing costs

[Input placeholder: e.g. 40000] (Current value unavailable.)

4. Approximate credit score

Below 620

620–679

680–699

700–759

760+

Not sure

5. State or area where you want to buy

[Input placeholder: e.g. Houston, Texas] (Current value unavailable.)

[Estimate my borrowing power]

I'll use those figures to estimate both a potential lender borrowing limit and a more comfortable price range, including estimated monthly payments. The actual amount will depend on lender requirements, interest rates and the property's costs.

If you want to know how much borrowing power you have before shopping for a new home, I'd start with a free online home equity calculator from a bank or mortgage lender. You can estimate your home's equity, see how much you might be able to borrow, and then work out how that money could contribute to your next home purchase.

One important distinction: your home equity is not the same as your total borrowing capacity for a new home. You'll want to estimate both the cash you could access from your current home and the new mortgage you could qualify for.

Best web-based home equity calculators

1. LendingTree — Best overall starting point

(Recommended)

Estimate your available equity and potential borrowing amount using your home's value, mortgage balance, and credit score range. You can also estimate loan payments.

Good for a quick estimate and comparing lending options.

Open LendingTree's calculator www.lendingtree.com

2. UMB Bank — Best for a simple borrowing estimate

Enter your home's appraised value and outstanding home loans to estimate your potential home equity line of credit (HELOC).

Useful for understanding your potential borrowing limit before applying.

Open UMB's HELOC calculator www.umb.com

3. Alliant Credit Union — Best for estimating HELOC capacity

Explore how your property's value and mortgage balance affect your potential borrowing capacity.

The estimate is illustrative and subject to credit and lending requirements.

Open Alliant's calculator secure.alliantcreditunion.org

4. Wells Fargo — Best for planning your next purchase

If you want to know how much you could borrow to buy your next home, use its mortgage qualification calculator alongside your home equity estimate.

Open Wells Fargo's mortgage calculators www.wellsfargo.com

How to calculate your available home equity

A useful rule of thumb is:

\begin{aligned}
\text{Home equity} &= \text{Home value} - \text{Mortgage owed}\\
\text{Potential borrowing} &= \text{Home value}\times\text{LTV limit}\\
&\quad-\text{Mortgage owed}
\end{aligned}

For example, suppose your home is worth $350,000, you owe $200,000, and a lender allows borrowing up to 80% of the home's value.

Estimated home value

$350,000

Existing mortgage

$200,000

Total equity

$150,000

Potential borrowing at 80% LTV

$80,000

Illustrative example only. Actual limits depend on the lender, other secured debts, creditworthiness and loan terms.www.chase.com+1

One important tip before shopping for your next home

If you plan to sell your current home and use the proceeds toward your next purchase, calculate your estimated net sale proceeds too. Subtract the remaining mortgage, selling costs, and any other applicable expenses from the expected sale price.

If you plan to keep your current home, ask a lender to assess how a HELOC or home equity loan would affect your existing monthly obligations and qualification for a second mortgage.

Would you like help estimating your own borrowing capacity? I can walk you through a rough calculation using your home's estimated value and remaining mortgage balance, then help you estimate how much cash you might have available for your next home.