CalculateRealEstateROI

Portfolio Building

Equity

Property value minus debt — the owner's stake.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Equity = value − loan balance. Built via appreciation, amortization, and forced appreciation.

Examples

  • $300k value − $200k loan = $100k equity.

Common mistakes

  • Confusing equity with available cash.

Related questions