Finance category
Mortgage, loan, investing, tax, and money calculators.
Shared Equity Calculator
Shared equity (HEI) products trade a slice of future appreciation for a lump sum today. No monthly payment, but the eventual payback scales with home value growth. This calculator estimates the true cost.
Homeowner net today
$72,075
Investor payout at exit
$150,638
Homeowner keeps at exit
$626,490
Implied annual rate
7.22%
vs HELOC rate
How the math works
Shared equity / home equity investment (HEI) products give a homeowner a lump sum in exchange for a percentage of future appreciation. No monthly payment. At sale or buyout, the investor receives their original investment plus their share of appreciation.
Cost depends heavily on actual appreciation. In high-appreciation markets, HEIs can be very expensive on a per-year basis. In flat markets, they're cheap. Compare implied annual rate against a HELOC or home equity loan at a known fixed rate before committing.
How to Use
- Enter current home value and HEI amount received.
- Enter investor's % share of appreciation.
- Assume an annual appreciation rate.
- Enter planned years until buyout or sale.
- Enter origination fee.
Frequently Asked Questions
Is shared equity cheaper than a HELOC?
Depends entirely on appreciation. In a 2-3% appreciation environment, shared equity often beats a HELOC on total cost. In a 6-8% appreciation run, the HEI company captures significant upside and total cost is much higher.
Can I buy out the HEI early?
Yes — all major HEI products allow early buyout with a payoff schedule tied to current home value (via appraisal). Don't require sale. Early buyout typically happens when home value has appreciated meaningfully.
Does HEI affect my mortgage?
HEI typically records as a performance deed of trust or restrictive covenant. Most first-mortgage lenders know about these and permit them. But some refinance lenders require HEI payoff at refi — confirm before refinancing.
Related Calculators
Home Equity Sharing Calculator
Specific product comparison.
Cash-Out Refi vs Home Equity Investment Calculator
HEI vs cash-out refi.
HELOC Calculator
HELOC alternative.
Home Equity Loan Calculator
Fixed HEL alternative.
Property Appreciation Calculator
Size appreciation assumption.
Equity Position Calculator
Available equity.
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