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Mortgage Buyout Calculator

When one borrower wants off the mortgage, the other needs to buy them out. This calculator works out the equity buyout so the departing borrower gets their fair share of what has been paid down.

Tell us about it

in $ USD
$480,000.00
$
$310,000.00
$
$7,000.00
$
50%
50%
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Estimated Buyout

$81,500.00
50% keep50% depart

In plain English

The home appraises at $480,000.00. With a $310,000.00 mortgage and $7,000.00 in refi costs, the remaining equity comes to $163,000.00. The departing 50% owner is owed $81,500.00.

How we got there+
Total equity$163,000.00
Departing share50%
Buyout owed$81,500.00

Estimates only, not legal or financial advice. Double-check figures with a qualified professional.

How we got there

— Mortgage Buyout Calculator

Methodology reviewed: August 17, 2026 · Source: Consumer Financial Protection Bureau — What is a home equity loan?

Frequently asked questions

Q.What does a mortgage buyout mean?▾
It means one borrower pays the other for their share of the equity built up in the home, and the departing borrower is removed from the loan.
Q.How is the buyout different from the mortgage payoff?▾
The payoff is the full amount owed to the lender. The buyout is the departing borrower's share of the equity, which is the home value minus the payoff.
Q.Do I need to refinance to remove someone from the mortgage?▾
Usually yes. Most lenders will not simply remove a borrower. Refinancing in one person's name is the standard way to complete a buyout.
Q.What if the home has lost value?▾
If the home is worth less than the mortgage, there is no equity to buy out. The departing borrower may still be liable for the debt unless other arrangements are made.
Q.Are there tax consequences to a mortgage buyout?▾
There can be, depending on your location and situation. Consult a tax professional to understand any capital gains or transfer tax implications.

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