Investing
Usable equity calculator.
Total equity and usable equity are different numbers. Lenders care about the second one.
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80% avoids LMI. Some lenders will go higher with LMI.
Estimated usable equity
$280,000
Usable equity is what a lender may release, not your total equity. Accessing it still requires servicing the additional borrowing.
- Total equity in the property
- $470,000
- Lending capacity at 80% LVR
- $760,000
- Less current loan balance
- $480,000
- Indicative purchase power (rule of thumb)
- $1,120,000
What could change this figure
- The lender's valuation, which is often lower than an online estimate
- Your serviceability, because equity alone doesn't approve a loan
- Whether your loans are cross-collateralised
- Lender policy on cash-out and the purpose of funds
This is an estimate only, based on the figures you have entered and simplified assumptions. It is not credit advice, an offer of credit, or an indication that any lender will approve a loan. Indicative purchase power is a rule of thumb only and assumes you can service the additional borrowing.
How this is calculated
- Usable equity is calculated as (property value × maximum LVR) − loan balance.
- Indicative purchase power is a rule of thumb only and assumes you can service the additional borrowing.
- Equity alone does not approve a loan. Serviceability is assessed separately.
- Lender valuations are frequently lower than online estimates.
Free guide
The Investor's Loan Structure Guide
Equity, structure and borrowing capacity
- How to work out your usable equity
- Cross collateralisation explained, and why it limits your options
- Structuring loans so your borrowing capacity survives the next purchase, and what the 2027 tax changes mean
- The investment loan features that actually matter
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