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How to use
- Enter Property value.
- Enter Loan balance.
- Calculate, then review what is included in the definition before making a financial decision.
How it is calculated
Equity = property value − loan balance
Example
A 1,000,000 property with a 650,000 loan balance gives 350,000 arithmetic equity.
Important notes
This equity amount does not subtract selling costs or taxes, so it may differ from cash actually received on sale.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Equity | 1000000 − 650000 | 350,000 |
| Loan balance | 650000 | 650,000 |
Frequently asked questions
Can equity be negative?
Yes, if the loan balance exceeds the property value used in the calculation.
Is this a loan approval or credit decision?
No. This is a numerical calculator only; lenders may use different income, debt, appraisal and fee policies.
Should I use gross or net income?
Use the income type named by the field. Do not substitute net for gross because it changes the denominator and result.