LoanMetric

Home Equity Calculator

Estimate how much equity you have and how much you may be able to access based on property value and loan balances.

Understand your equity position and what lenders may consider accessible — before checking borrowing capacity.

This home equity calculator australia experience helps you calculate home equity Australia scenarios and test a usable equity calculator Australia estimate quickly.

No sign-up requiredAustralia-focused assumptionsFor educational purposes only

This tool focuses on property security only. It does not calculate lender approval and should be used with Borrowing Capacity for serviceability context.

Estimates only. Not financial advice or a lending recommendation.

Your Property Details

Use an estimate (recent sale, agent appraisal, or lender estimate).

Other loans secured against this property.

80.00%

80% is a common benchmark to avoid LMI. Higher LVR may be possible but often requires LMI.

Estimated Equity

$400,000

You may be able to access up to $220,000 based on 80.00% LVR (subject to lender approval).

Current LVR: 55.56%Usable Equity @ 80.00%: $220,000

Breakdown

Debt vs value ratio55.56%
Property value$900,000
Total secured debt$500,000
Equity$400,000
Max borrow @ 80.00% LVR$720,000
Usable equity$220,000

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Why usable equity isn't guaranteed

Check if you can actually access this equity

Borrowing capacity determines lender approval.

You may be able to refinance or access equity

Many homeowners use equity to refinance, renovate, or invest. If you're comparing investment scenarios, test cash flow in the Investment Property Calculator.

  • Lower your interest rate
  • Access funds for renovation
  • Invest in another property
Check borrowing capacity

What is equity

Equity is the difference between your property value and total secured debts. It shows your current position in the property before lenders apply serviceability checks.

What is usable equity (usable equity 80 percent rule)

Usable equity is the portion of equity available below your chosen target LVR threshold. In Australia, 80% LVR is a common benchmark to reduce LMI exposure, but lender policy can vary.

People often refer to this as the usable equity 80 percent rule. It can support equity to refinance Australia planning, but should still be validated with serviceability and repayment checks.

How lenders assess usable equity

  1. Step 1 — Bank valuation may differ from your estimate.
  2. Step 2 — LVR limits apply (often 80%).
  3. Step 3 — Existing debts reduce usable equity.
  4. Step 4 — Borrowing capacity must still be approved.

This calculator estimates usable equity only and does not guarantee lender approval.

Equity vs borrowing capacity

Equity is your asset position in the property. Borrowing capacity is how much a lender may approve after assessing serviceability and policy.

These are not the same. You can have usable equity and still be limited by income, living costs, existing debts, dependants, buffers, and lender rules.

Next step: run Borrowing Capacity Calculator.

How this equity calculator works

The calculator adds your current loan balance and other secured debt, then compares that total against your property value to estimate equity and usable equity.

  • Total secured debt = current loan balance + other secured debts
  • Equity = property value − total secured debt
  • Current LVR = total secured debt ÷ property value
  • Usable equity = max borrow at target LVR − total secured debt (minimum 0)

Assumptions

  • Property value is user-provided.
  • No lender policy modelling is applied.
  • No serviceability modelling is applied.
  • Fees and transaction costs are not included.
Data Sources & Methodology

Tier 1 Home Equity Calculator uses only user-entered values (property value, debt, and target LVR). No external pricing, valuation, or policy feeds are used.

This model is designed for quick scenario testing and education. It does not represent credit assessment.

Home equity calculator FAQs

Equity is the difference between your property value and total secured debt against that property.

Disclaimer

  • Estimates only. Results are indicative and may differ from lender valuations and credit assessment outcomes.
  • This calculator does not include lender policy checks, serviceability assessment, or documentation requirements.
  • This information is general in nature and is not financial advice or a lending recommendation.

Next steps

Continue planning your borrowing strategy.