How this number is made
Future equity is a future price minus a future loan balance. Both depend on assumptions: the price growth you type, and on-time payments with no extras.
- Original term is the term the payment was built on, so the balance formula knows the payment.
- Years from now cannot exceed the term.
Formula
Future price = price × (1 + growth) ^ years. Equity = future price − scheduled balance.
Worked example
With the figures already in the form, equity if price growth holds is $184,534.
Questions
What if I sell?
Commission and repairs come out of this equity. They are not subtracted here.
What if prices fall?
Type a negative growth rate. Equity can be smaller than the down payment you remember.