How this calculator works
A gift of equity arises when a seller transfers a property for less than its supported market value. This tool measures that difference; it does not decide whether a lender will accept it as a down payment. Use a consistent valuation date and include only the property interest being transferred.
Formula
Equity gift = market value - sale price. Sale price = market value - gift. Market value = sale price + gift. Gift percentage = gift / market value.
Worked example
A home valued at $500,000 sold for $400,000 carries a $100,000 equity gift, equal to 20% of the market value.
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Frequently asked questions
Does this calculate tax?
No. Tax treatment and land transfer charges can depend on fair market value, relationships and jurisdiction.
Can the gift replace a cash down payment?
That depends on the mortgage programme and lender documentation. Ask the lender to confirm the accepted amount.
What if the sale price is above market value?
This is not an equity gift. The calculator asks for values that produce a non-negative gift.