Home Equity Calculator
Estimate your total equity, usable equity and cash available after refinance costs.
Your property and loans
Include every loan secured against this property.
Your equity estimate
Example inputsCheck the highlighted fields to calculate your estimate.
- $200,000
- Additional debt within your selected loan-to-value ratio, before refinance costs.
- $350,000
- $197,000
- $0
Cash after costs by valuation
Both scenarios use the same secured debts, target ratio and costs.
| Total secured balances | $400,000 |
|---|---|
| Debt at target ratio | $600,000 |
| Refinance costs | $3,000 |
| Existing debt above target | $0 |
| Alternative valuation equity | $300,000 |
| Alternative usable equity | $160,000 |
| Alternative cash after costs | $157,000 |
| Alternative debt above target | $0 |
Total Equity and Usable Equity
Home equity is your property value minus every loan balance secured against it. Usable equity is the extra debt that fits within your selected loan-to-value ratio (LVR). Multiply the value by that percentage, then subtract the secured balances.
For example, a $750,000 property with $400,000 secured debt has $350,000 total equity. At an 80% target LVR, total debt can reach $600,000 in this model. That leaves $200,000 usable equity before costs.
The starting property and loan figures follow CommBank's equity example. The 80% target is an assumption you can change. A higher target increases the calculated headroom, but lenders mortgage insurance (LMI) or other lender restrictions can apply.
Include second mortgages and any other debt secured against the same property. Use the loan balances before any offset account balance is deducted. An offset reduces interest charged while the secured loan balance remains owing.
Cash Out After Refinance Costs
Cash available is usable equity minus the refinance costs you enter, with a minimum of zero. The calculator assumes those costs are financed inside the target loan amount. Each dollar of financed costs reduces the remaining cash by one dollar.
The starting $200,000 usable equity becomes $197,000 cash after $500 discharge costs, $500 new-loan fees and $2,000 other costs. These cost figures are examples, not lender quotes. Include any capitalised LMI premium or settlement expense once in the relevant field.
Cash-out shortfall compares the cash you seek with the available amount. A $210,000 request in the starting example leaves a $13,000 shortfall. The request changes this comparison, not the property equity or the maximum headroom.
If you pay costs from savings, enter only the costs being financed. Keep a separate cash allowance for the expenses you pay yourself. When using equity to buy an investment property, allow separately for the new property's deposit and purchase costs.
A Lower Valuation Scenario
A lower property valuation reduces the debt allowed at the same target LVR. The alternative scenario keeps your secured balances and costs unchanged so you can compare the effect of the value alone.
At $700,000 with $400,000 secured debt and an 80% target, usable equity falls to $160,000. After the same $3,000 costs, cash available is $157,000. At a $500,000 valuation, usable equity reaches zero because 80% of that value equals the existing debt.
Below that boundary, the result shows zero usable equity and the amount of existing debt above your target. Total equity can still be positive. If debt exceeds the property value, total equity is negative and the calculator continues to show zero available cash.
Approval Still Depends on the Borrower
Equity establishes a security estimate. A lender separately assesses whether the borrower can repay the proposed total debt, whether it accepts the cash-out purpose and whether the property is suitable security.
CommBank explains that access to equity depends on income, living expenses and existing debt. The lender's valuation can also differ from the value you enter. A positive result here is not an approval or an approved cash-out amount.
Borrowing against equity increases debt secured by the home. Compare the resulting repayments with ongoing costs before committing funds to another purchase. The borrowing power calculator estimates repayment capacity from income, expenses and debts.