Usable Equity Calculator
Work out how much equity in your home you could access for a deposit, renovation or investment property.
- Total equity (property value − loan balance)
- $400,000
This calculator provides estimates only. It is general information, not financial or taxation advice, and doesn't account for your full personal circumstances. Confirm figures with your lender or a licensed adviser before making a decision.
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How this calculator works
Total equity is simply your property's value minus what you still owe on it — but you generally can't borrow against all of it. Usable equity is the amount a lender will actually let you access, calculated by working out the loan you could hold at a target LVR (commonly 80%, to avoid LMI) and subtracting what you currently owe.
Enter your property's current value, your loan balance, and the maximum LVR you're comfortable borrowing back up to (80% is the common default that avoids LMI on the new borrowing).
Worked example: a property worth $800,000 with a $400,000 loan balance has $400,000 in total equity. At an 80% target LVR, the maximum loan the lender would allow is $640,000 — leaving $240,000 in usable equity that could go toward a deposit on an investment property, a renovation, or another purchase.
Lenders will still assess whether you can service any new borrowing against that equity — usable equity tells you the ceiling based on the property alone, not whether you'd be approved to actually borrow it. Property valuations can also be conservative compared to what you might expect the property to sell for.
Frequently asked questions
- Why isn't all my equity usable?
- Lenders cap how much they'll lend against a property (commonly 80% of its value, to avoid needing LMI) — so a portion of your equity stays 'locked in' as the lender's buffer, even though it's technically yours.
- Can I go above 80% LVR to access more equity?
- Some lenders will, but usually with LMI payable on the additional borrowing, which adds a real cost. This calculator defaults to 80% but you can raise the target LVR to see how much more equity that would free up.
- Does the lender use my estimate of the property value?
- No — they'll order their own valuation, which can come in lower than what you expect, especially in a fast-moving market. Treat the property value here as an estimate to check before assuming the full amount is available.