Published August 11, 2026

How Do I Determine my Home Equity?

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Written by Derek Gutting

How Do I Determine my Home Equity? header image.

In plain english.

Home equity is a significant part of many people’s net worth. To figure home equity, first you must be a homeowner. If you are renting, you will have no home equity.

To figure your home equity, first you will need to determine the approximate value of your home. Second, you will need to know what your loan (mortgage) balance owed is. Then you subtract the two numbers.

Example.

Home value - $450,000

Mortgage Owed - $300,000

TOTAL HOME EQUITY - $150,000

Over the years, your home value will go up and the mortgage balance will go down, continuing to increase your home equity, thus driving up your net worth. Real estate has always been a significant driver of people’s net worth! Buy real estate and hold!

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real estate, carmel home values, indianapolis home values, 2026 Indianapolis real estate, Indianapolis real estate, 2026 real estate forecast, Fishers home values
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Derek Gutting

| The Gutting Group | KW Indianapolis Metro North

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