How Much Equity Do I Have in My Home?
Wondering how much equity is in your home? Equity is the part of the house you actually own: its fair market value today, minus everything you still owe on it. Type in your value and your balances and this calculator shows your equity in dollars and as a share of the value, your loan-to-value, what would be left after selling costs, and how much a lender might let you borrow against it. It's an estimate, and the value is the weak link. The real number starts with a real comp pull, which I'll do for free.
Run your numbers
What it's worth
Use a number from real sold comps, not an online estimate. Get mine free.
What you owe on it
If you sold
Commission is negotiable and set in your listing agreement. Eight percent is a planning placeholder for commission, title and closing fees and concessions. The home sale calculator itemizes every line.
| The math | |
| Home value | $0 |
| Total owed | $0 |
| Equity | $0 |
| Equity as a share of value | 0% |
| Loan-to-value | 0% |
| If you sold | |
| Estimated selling costs | $0 |
| Equity you'd walk away with | $0 |
| If you borrowed against it | |
| Room under an 80% combined loan-to-value | $0 |
Most lenders cap a HELOC or cash-out refinance somewhere around 80 to 85 percent of the home's value, all loans combined. Your lender sets the number. I'm a Realtor, not a lender.
Get my real home valueRun the full net sheetHow to calculate home equity, in plain terms
The home equity formula
Equity is what the house would sell for today minus every dollar secured by it: the first mortgage, a second mortgage or HELOC, and any lien, judgment or unpaid tax bill. Value minus owed. Nothing else counts, including what you paid for it or what you've put into it.
The value is the weak link
Your balances are exact. Your value is a guess until someone pulls sold comps. Online estimates miss the things that move price here: which side of the county line a Spring Hill house sits on, the new construction two streets over, and a kitchen the county records know nothing about. I pull the comps from your own subdivision first and send you the number with the sales behind it, free, through my home valuation.
Equity is not cash
Selling turns equity into cash only after the costs come out: commission (negotiable), title and closing fees, any concession to the buyer, and the tax proration. Borrowing against it works the other way, with the lender capping the total you can owe. The calculator shows both so you can see the gap between the equity you have and the money you can actually use.
Taxes when you sell
If you've owned and lived in the home for at least two of the last five years, federal law lets you exclude up to $250,000 of gain from income tax, or $500,000 if you're married and file jointly. Gain is the sale price minus what you paid and what you've spent on improvements, not your equity. Tennessee has no state income tax on the gain.
Tax figures on this page are the federal rules as published for 2026 and are for planning only. I am a licensed Realtor (TREC 369038), not a tax professional or a lender. Confirm your own situation with a CPA, and any borrowing limit with your lender, before you rely on a number.
A worked example
A $650,000 home with a $380,000 first mortgage and a $25,000 HELOC has $245,000 in equity, which is 37.7 percent of the value, and a loan-to-value of 62.3 percent. At 8 percent selling costs ($52,000) the owner walks away with about $193,000. Under an 80 percent combined loan-to-value cap, there is about $115,000 of borrowing room ($520,000 minus the $405,000 owed).
What to do with the number
Enough equity to cover the payoff and the costs means you can sell any of three ways: a full market sale, a cash offer for speed, or a creative sale when the numbers on a standard one don't work. Not enough means a short sale or waiting. Either way, start by replacing your guess with a real value.
Common questions about home equity in Tennessee
How do I find my mortgage balance?
Your lender's app or statement shows the current principal balance, which is close enough for this calculator. The payoff figure at closing runs a little higher because it adds interest through the closing date and any fees. The home sale calculator uses the payoff.
Is my Zestimate my home value?
No. It's a starting guess built from public records and nearby sales, and in Middle Tennessee it misses the county line, new construction nearby and anything you've updated. Use it to fill the box if you have nothing else, then get a free valuation from real sold comps before you make a decision on it.
How much equity do I need to sell my house?
Enough to pay off every loan and lien plus the selling costs, or you bring money to closing. For most homes that means equity above roughly 8 to 10 percent of the value. Below that, talk to me before you list, because a short sale or a different timing may be the better route.
Can I use my equity without selling?
Yes, through a home equity loan, a HELOC or a cash-out refinance. Most lenders cap the total you can owe at around 80 to 85 percent of the value. The calculator's borrowing line uses 80 percent. Your lender sets the real limit, and I'm a Realtor, not a lender.
Do I pay taxes on my equity when I sell?
You pay tax on gain, not on equity. Federal law excludes up to $250,000 of gain ($500,000 married filing jointly) if the home was your main residence for two of the last five years. Tennessee has no state income tax on the gain. Confirm your own numbers with a CPA.
What is a good amount of equity to have?
Twenty percent is the number that matters most. On a conventional loan, once you are at 80 percent loan-to-value you can ask the lender to cancel private mortgage insurance, and it drops off on its own at 78 percent under the original schedule. Twenty percent is also about where selling stops being tight, because the payoff and the costs fit under the price with room to spare. Your lender confirms the PMI rules for your loan.
How long does it take to build 20 percent equity?
It depends on three things: your down payment, how fast the balance falls (slowly in the early years of a 30-year loan, since most of the payment is interest), and what prices do in your subdivision. A buyer who put 5 percent down in a flat market waits years. A buyer in a subdivision that rose 6 percent in a year, like Franklin single-family homes did from September 2025 to September 2026, gets there much sooner. Run the calculator with a new value and a new balance to see where you stand today. Based on information from Realtracs® for the period September 1, 2025 through September 30, 2026.
Is it a good idea to pull equity out of my home?
It depends on what the money does. Borrowing against the house to pay for the house (a roof, a kitchen that adds value) or to buy the next one is a different decision from borrowing for something that loses value. The loan still has to be paid, and it comes off the top when you sell. I'll show you the numbers both ways. The borrowing decision itself belongs with you and your lender or financial advisor.
What if I owe more than the house is worth?
The calculator shows a negative number. That is negative equity, and selling means a short sale, bringing cash to closing, or waiting for the balance and the value to cross. My short sale guide explains the process in Tennessee, and I'll run your numbers for free.
Know your number? Now get the real one.
Your balances are exact. Your value is the guess. Send me the address and I'll pull the sold comps from your subdivision and send back a number I'd defend at a listing appointment, free, no listing required.