Mortgage Loan-to-Value Ratio Calculator
Express secured borrowing as a percentage of the property's value.
Property
Home Equity and Net Sale Equity Calculator
Subtract property-secured debt from your stated value to calculate home equity and then estimated net sale equity. This is not a market valuation or the amount a lender will allow you to borrow.
Your numbers
How the calculation works
Home equity is the portion of a supplied property value left after secured debt. This tool also deducts estimated sale and settlement costs to distinguish the headline equity from the cash that might remain after a sale scenario.
Equity = supplied property value − secured debt. Net sale equity also subtracts the entered selling and settlement costs.
Subtract secured debt
Property value less total secured borrowing gives equity before sale costs. The result is allowed to be negative when debt exceeds value.
Express the equity share
Divide equity by the full property value and multiply by one hundred. This percentage uses value as its denominator, not the original deposit.
Estimate the net sale position
Subtract the entered sale and settlement costs from equity. The result is a scenario for what remains after those costs, not an available credit limit.
Worked example: Equity net of sale cost
Sample inputs demonstrate the method. They are not a forecast or product offer.
The first example uses a €200,000 value and €150,000 secured debt. Equity is €50,000, which is 25% of value. Deducting €10,000 sale and settlement costs leaves an estimated €40,000 net sale equity.
- Property value
- 200000
- Total secured debt
- 150000
- Estimated sale and settlement costs
- 10000
Expected result
- Home equity before sale costs
- €50,000.00
- Equity share of property value
- 25%
- Estimated net sale equity
- €40,000.00
Worked example: Negative equity
Sample inputs demonstrate the method. They are not a forecast or product offer.
- Property value
- 100000
- Total secured debt
- 120000
- Estimated sale and settlement costs
- 0
Expected result
- Home equity before sale costs
- -€20,000.00
- Equity share of property value
- -20%
Understanding your result
Positive equity can coexist with a small net sale amount if transaction costs are substantial. Negative equity indicates that the entered value would not clear the included debt even before those costs.
An increase in assumed property value increases equity without itself creating cash. Releasing equity through a sale or borrowing involves separate transactions and conditions.
Questions you might have
Can home equity be negative?
Yes. If secured debt exceeds the entered property value, the difference is shown as negative equity.
Choosing the right inputs
- Property value
- Enter a positive value for the property at the date or scenario being assessed. The calculator does not fetch an estimate or establish a lender’s valuation.
- Total secured debt
- Add all relevant outstanding debt secured against this property. Use balances, not monthly payments, and avoid listing the same mortgage twice.
- Estimated sale and settlement costs
- Supply estimated selling and settlement costs as a monetary amount. The calculator does not calculate fees or taxes from the property value automatically.
Common mistakes to avoid
- Do not enter home equity in the value field and then deduct the mortgage again.
- A principal balance and a lender redemption quote may differ; include applicable settlement costs consistently without duplication.
Assumptions to check
- The property value and costs are entered assumptions; the result is not a lender valuation or available credit.
Sources and method
Read our calculation and testing approach.