Real Estate
Home Equity Cash Flow Calculator
Project property value, mortgage amortization, HELOC carrying cost, accessible equity, and loan-to-value over a five-year homeowner equity path.
Owner equity path
Separate market equity from accessible borrowing capacity
Appreciation and mortgage principal reduction build equity; the maximum combined-loan-to-value limit determines how much is potentially accessible.Balance-sheet visualization
Property value, secured debt, and accessible-equity band
The green band is equity above the entered maximum combined LTV—not a guaranteed credit offer.Detailed calculation process
Equity grows when value rises or secured debt falls
General symbolic formulas
E0 = V - M - HCLTV = (M + H) / VA0 = max(Vl - M - H, 0)Vt = V(1 + g)tMt = max(M - 12pt, 0)At = max(Vtl - Mt - H, 0)Market equity subtracts all entered secured debt from value. Accessible equity applies the lender’s maximum combined-LTV ceiling before subtracting debt.
Symbol definitions
Worked substitution with current inputs
Year-by-year equity schedule
| Year | Projected value | Mortgage balance | Total secured debt | Market equity | Accessible equity |
|---|
Use steps
- Use a defensible current value, not the desired listing price.
- Enter the principal—not total payment—reduction.
- Stress appreciation and the lender CLTV limit independently.
Practical examples
Renovation line: compare the accessible amount with project contingency.
Debt reduction: test an additional $300 monthly principal reduction.
Limitations
The projection holds HELOC balance constant and uses a constant appreciation rate and principal reduction. It omits closing costs, new draws, changing amortization, taxes, credit underwriting, and appraisal uncertainty.
Home equity FAQ
Why is accessible equity less than market equity?
Lenders usually require an equity cushion below 100% combined LTV.
Does appreciation create spendable cash?
No. It changes modeled value; borrowing or selling is required to convert equity into cash.
Why show HELOC interest separately?
It is a recurring cash-flow cost even though it does not change the equity formula unless added to the balance.