Almost 50 million homeowners have equity to borrow now: How to calculate yours
Home ownership can be stressful and expensive. From repairs to maintenance costs to renovations, taxes, landscaping and more, if you're a homeowner, it can often feel like the work never stops – and the bills keep piling up. There is one major advantage to owning a home, however, that doesn't apply to renters: accumulated home equity. With a little luck and a combination of mortgage payments and rising home values, homeowners in the U.S. just saw their home equity levels increase to a new record, according to a recent report.
"Roughly 48 million mortgage holders had tappable equity, with the average homeowner holding $213,000 in accessible value," entering the third quarter of 2025, the August Intercontinental Exchange (ICE) Mortgage Monitor report noted. Overall, borrowers went into the third quarter of 2025 with $17.8 trillion in equity, around $11.6 trillion of which is usable (while maintaining the traditional 20% equity cushion most lenders require).
While many of these homeowners are familiar with the ways they can borrow this equity, with home equity loans and home equity lines of credit (HELOCs) being two of the more affordable options, they may not know exactly how much they can borrow right now. And while this number will vary by homeowner, there is a simple way to calculate home equity that prospective borrowers should be aware of before applying with a lender. Below, we'll detail how they can get to that figure right now, with average levels at a record high.
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How to calculate how much home equity you have to borrow now
Calculating your home equity level is relatively easy. You'll need two primary figures: The amount you currently owe on your mortgage and the amount your home is currently worth. You'll then deduct the former from the latter to see how much equity you have to work with. So, for example, if you purchased your home for $400,000 (around the median price in the country now), and have since paid down $100,000, you'd owe a balance of $300,000. If your home is currently worth $600,000, then simply deduct the balance you owe from that value, resulting in $300,000 worth of equity to utilize.
That said, you won't be able to borrow all of that equity (the $300,000 in this example). The borrowable amount is determined by the lender, typically capped around 80%, approximately, of that figure. So, in this case, you'd be able to borrow 80% of $300,000, or $240,000.
And remember that this isn't an interest-free loan. While rates on HELOCs and home equity loans are much lower than personal loans and credit cards now, both are still in the low 8% range and could be higher for borrowers with mediocre credit. So it's important to first determine how much equity you can borrow, then follow up by determining how much you should and, along the way, continue to calculate the costs of doing so with a HELOC and a home equity loan to best determine the strategy that makes the most sense for your needs.
Your home serves as collateral here, regardless of whether you use a HELOC or home equity loan, so even if your equity is high at the moment, it's important to avoid the temptation to overborrow. Failure to make payments as agreed to could ultimately result in the property being foreclosed on.
Find out how much home equity you could borrow with a loan or HELOC here now.
The bottom line
It's simple to calculate your home equity. And, right now, there's likely more than ever to calculate. But don't overborrow, either. Instead, calculate your needs and repayment costs with precision to determine exactly which approach makes the most sense for your needs and goals. And remember that HELOCs have variable rates and home equity loans have fixed ones, both of which have pros and cons to account for in advance of any formal application.