How do you calculate available equity?

Silly question i know, but it's the first time i will be accessing equity in my 2 IP's.

How do you work out what the banks will release? I know they will only lend up to 90%...but is that of the available equity of the entire property value?

For example, in one property the valuation has come back as $340,000...I owe $240,000..what is the amount the bank will release?

340-240=100x90%=90k?
or
90%x340=306-240=66k?
 
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