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Equity Percentage Calculator

Written by the percentages.co.uk team. Reviewed for accuracy.

This calculator works out your equity percentage for a property or business. Enter the current value and outstanding debt to see the equity in pounds, equity as a percentage of total value, and for property, the loan-to-value ratio.

Takes about 30 secondsUpdated 17 May 2026

How it works

Equity is the portion of an asset that you own outright, without any debt attached. For a property, it is the market value minus the outstanding mortgage balance. For a business, it is total assets minus total liabilities.

The formula

Equity = Value - Outstanding debt

Equity % = (Equity / Value) × 100

LTV % = (Debt / Value) × 100

Note that equity percentage and LTV always add up to 100%. If your equity is 35%, your LTV is 65%. Lenders use LTV to set mortgage interest rates; lower LTV typically means access to better rates.

Why this works: Expressing equity as a percentage of total value makes it comparable across properties of different sizes. A £60,000 equity stake in a £200,000 property (30%) and a £150,000 equity stake in a £500,000 property (30%) represent the same proportional ownership.

Worked examples

A house is worth £320,000 with a remaining mortgage of £192,000. What is the equity?

  1. Equity: 320,000 - 192,000 = £128,000
  2. Equity %: (128,000 / 320,000) × 100 = 40%
  3. LTV: (192,000 / 320,000) × 100 = 60%

Answer: £128,000 equity (40%), LTV 60%

A first-time buyer purchases a flat worth £210,000 with a 10% deposit. What is their initial equity and LTV?

  1. Deposit (equity): 210,000 × 0.10 = £21,000
  2. Equity %: 10%
  3. LTV: 90%

Answer: £21,000 equity (10%), LTV 90%

A small business has total assets of £450,000 and total liabilities of £180,000. What is the equity percentage?

  1. Equity: 450,000 - 180,000 = £270,000
  2. Equity %: (270,000 / 450,000) × 100 = 60%

Answer: £270,000 equity (60%)

A homeowner's property value has fallen from £300,000 to £260,000 while the mortgage remains at £272,000. Are they in negative equity?

  1. Equity: 260,000 - 272,000 = -£12,000
  2. This is negative equity

Answer: Yes, -£12,000 negative equity

A remortgaging homeowner has a property worth £380,000 and £209,000 outstanding. What LTV band do they fall into?

  1. LTV: (209,000 / 380,000) × 100 = 55%
  2. This falls into the 55% LTV band

Answer: 55% LTV, which typically attracts competitive rates

When to use this

  • Remortgaging: Checking your current LTV to find out which mortgage deals you qualify for. Most lenders offer better rates at 75%, 65%, 60% and below.
  • Equity release planning: Working out how much equity you have accumulated to assess whether equity release or a further advance is viable.
  • Business financing: Calculating equity percentage to support a loan application, investor pitch or business sale valuation.
  • Help to Buy repayment: Homeowners with a Help to Buy equity loan need to know their current equity percentage when considering repaying the government loan.

Understanding the result

UK mortgage lenders typically categorise products by LTV band: 95%, 90%, 85%, 80%, 75%, 70%, 65%, 60% and below. Each threshold usually represents a step change in available rates, with lower LTV attracting cheaper deals. Moving from a 75% LTV to a 60% LTV when remortgaging can save hundreds of pounds per year.

Equity only becomes accessible if you sell the property, remortgage to release it, or take out a further advance. Having high equity on paper does not mean you have liquid cash.

Related concepts

➡ To find how much your property has increased in value since purchase, the percentage change calculator shows growth as a percentage of the original price. ➡ For understanding what a percentage of a property value represents in pounds, the percentage of a number calculator converts any rate into a real cash figure. ➡ If you want to know how much deposit you need to reach a target LTV, the reverse percentage calculator works backwards from a percentage to the underlying amount.

How to do this in Excel

Equity: =A1-B1 | Equity %: =((A1-B1)/A1)*100 | LTV: =(B1/A1)*100

Put property value in A1 and outstanding mortgage in B1. The three formulas give equity amount, equity percentage and LTV percentage respectively.

How to do this without a calculator

Subtract your mortgage balance from your property value to find the equity amount. Divide that by the property value and multiply by 100 to get the percentage. For LTV, divide the mortgage by the value and multiply by 100.

Common mistakes

Using purchase price instead of current market value

Property values change over time. LTV and equity calculations must use the current market value, not what you paid. An outdated figure can make your equity look higher or lower than it actually is.

Forgetting second charges or secured loans

If you have a second charge mortgage or secured loan on the property, that debt should also be included in the total outstanding debt figure when calculating true equity.

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