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Property

Property Equity Calculator

Calculate the equity in your property from its current value and outstanding loan balance, plus your effective loan-to-value ratio.

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Your results

Equity$300,000
Loan-to-value ratio62.5%

Calculation breakdown

Equity
property value − loan balance
LVR
loan balance ÷ property value × 100

Worked example

An $800,000 property with a $500,000 loan balance leaves $300,000 in equity and a 62.5% loan-to-value ratio.

Assumptions

  • Does not subtract selling costs such as agent commission, which would reduce net proceeds if sold.
  • Usable equity for further borrowing is typically less than total equity, capped near 80% LVR.

How this calculator works

Equity is the portion of your property you own outright, calculated as the current property value minus your outstanding loan balance. Enter both figures to see your equity in dollars and your current loan-to-value ratio.

Frequently asked questions

What is usable equity?

Usable equity is generally the equity above what's needed to keep your loan at 80% LVR, since lenders often cap further borrowing at that level without LMI.

Does equity include selling costs?

No, this is a simple ownership calculation and doesn't subtract selling costs like agent fees, which reduce net proceeds if you sell.

How can I increase my equity?

Equity grows through paying down the loan principal and through property value increases, both of which are outside this calculator's control.

Results are estimates only and are not financial, tax, legal or credit advice.

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