Mortgages
Equity percentage and amount
Equity is the part of the value you own outright.
The Formula
equity percent = 1 - LTV, equity amount = value - loan
Equity is the part of the value you own outright.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| equity percent | Equity share | percent | One minus the LTV, as a percentage. |
| equity amount | Equity value | currency | The value minus the loan. |
What Each Symbol Means
equity percentpercent
Equity share
One minus the LTV, as a percentage.
equity amountcurrency
Equity value
The value minus the loan.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate loan to value page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Loan To Value, filed under Finance. Every number the guide produces comes from substituting into this one line.