---
title: "Equity — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/equity/
---

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Investing[All terms starting with E](/glossary/#letter-E)

# Equity

The difference between what a property is worth and what is owed against it.

Equity grows three ways: the down payment you put in, principal paid down each month, and appreciation. It is unrealized until you sell or borrow against it.

Lenders measure the same relationship from the other direction as loan-to-value, and the available portion is limited by what a lender will lend against the property.

## Put a number on it

This term feeds the calculators below.

- [Rent vs Own CalculatorCompare long-term costs and equity between renting and owning.](/calculators/rent-vs-own/)
- [Home Sale Proceeds CalculatorEstimate net proceeds after agent fees, taxes, and payoff.](/calculators/home-sale/)

## Related terms

- [LTV (Loan-to-Value Ratio)The loan amount as a percentage of the property’s value, the main measure of how much equity cushions the loan.](/glossary/loan-to-value/)
- [HELOC (Home Equity Line of Credit)A revolving credit line secured by your home equity, drawn and repaid like a credit card during a draw period.](/glossary/heloc/)
- [Cash-out refinanceRefinancing for more than you owe and taking the difference in cash, converting equity into spendable funds.](/glossary/cash-out-refinance/)
- [AppreciationAn increase in a property’s value over time, from market movement or from improvements made to it.](/glossary/appreciation/)

## More in Investing

- [1% rule](/glossary/one-percent-rule/)
- [1031 exchange](/glossary/1031-exchange/)
- [50% rule](/glossary/fifty-percent-rule/)
- [Appreciation](/glossary/appreciation/)
- [CAGR (Compound Annual Growth Rate)](/glossary/cagr/)
- [Cap rate (Capitalization rate)](/glossary/cap-rate/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)