Answer: Roughly speaking, you take the market value of your home and then subtract what you owe. If your home is worth $250,000 and your mortgage balance is $150,000 then your equity is $100,000. A better estimate include other costs, like minor repairs, marketing, and closing expenses. If the property is worth $250,000 and you then subtract a percentage for expenses, and let’s say 8 percent is a reasonable figure, then you have $230,000 ($250,000 less $20,000) from which you subtract the loan balance of $150,000 – leaving a more realistic figure.  In this example, your equity is $80,000.