Understand your property equity.
Enter your property value and current loan balance to estimate your equity, current LVR and potential usable equity based on a target LVR.
Enter your property details
The usable equity figure is an estimate and does not represent guaranteed borrowing capacity.
Estimated property equity
Based on an 80% target LVR, there is no additional estimated equity available within this simplified calculation.
Your current loan represents approximately 80% of the property's value.
Equity is the value you own in the property.
Property equity is the difference between the property's current value and the amount you owe against it.
For example, a property worth $800,000 with a $640,000 loan balance has approximately $160,000 in equity.
See where your equity sits.
Your property value can be viewed as a combination of the amount owed and the equity remaining in the property.
Your total equity isn't always the same as usable equity.
A lender may consider how much additional borrowing could be supported by the property's value and the lender's applicable LVR requirements. This calculator provides a simplified estimate based on your selected target LVR.
Potential additional borrowing
within selected target LVR
$800,000 property with a $640,000 loan.
The difference between the property value and loan balance gives an estimated equity position of $160,000.
Common questions about property equity.
How is property equity calculated? +
Equity is generally calculated by subtracting the outstanding loan balance from the property's current value. For example, an $800,000 property with a $640,000 loan balance has approximately $160,000 in equity.
What is my current LVR? +
Current LVR is calculated by dividing the outstanding loan balance by the current property value and multiplying by 100. The calculator above calculates this automatically.
What is usable equity? +
Usable equity is commonly used to describe the portion of property equity that may potentially support additional borrowing while staying within a particular LVR. Actual availability depends on lender requirements, valuation, borrowing capacity and other factors.
Can I use home equity to buy another property? +
Property equity may potentially be used as part of another borrowing arrangement, subject to lender assessment, property valuation, borrowing capacity and other requirements. Equity alone does not guarantee approval for additional borrowing.
This calculator provides simplified estimates based on the figures entered. Property values can change and actual lender valuations, loan balances, borrowing capacity, LVR limits, fees and lending criteria may differ. The estimated usable equity figure is not a guarantee that additional borrowing will be available. This tool is for general information only and is not personalised financial, credit, mortgage, legal or tax advice.
