Home Equity Loan Calculator
See your available home equity and the fixed monthly payment on a home equity loan in one place.
Example
Home worth $400,000 with a $250,000 mortgage and a lender max LTV of 85% gives available equity of 400,000 × 0.85 − 250,000 = $90,000. Borrow $80,000 at 7.5% over 15 years (180 months): the monthly payment is $741.71, total interest $53,508.45, and total cost $133,508.45.
How it works
Enter your home value, current mortgage balance, lender max LTV, then the loan amount, rate, and term. The tool computes borrowable equity and the standard amortized monthly payment instantly.
Good to know
The Home Equity Loan Calculator does two jobs at once: it estimates how much equity you can actually borrow against, then shows what a fixed-rate, lump-sum home equity loan would cost each month. You enter your home value, current mortgage balance, and a lender's max combined loan-to-value (LTV), and it derives your borrowable equity; you also enter a loan amount, interest rate, and term to get the monthly payment, total interest, and total cost. It's built for homeowners weighing a second-lien loan for renovations, debt consolidation, or a large one-time expense.
Reach for it before you talk to a lender, so you walk in with a realistic ceiling rather than a wish. The available-equity figure (home value times max LTV, minus your existing mortgage) tells you the rough maximum a lender at that LTV would allow. If you type a loan amount larger than that figure, the tool flags it with a warning, which is a quick sanity check that your borrowing plan fits inside typical lender limits.
Read the results as a package, not a single number. The monthly payment is what you'd owe every month for the full term; the total interest is the extra you pay on top of the principal over those years; and the total cost is principal plus interest combined. The two bars showing principal versus interest make the trade-off visible: a longer term lowers the monthly payment but usually grows the interest bar, while a shorter term does the opposite.
One caveat worth keeping in mind: the available-equity number assumes the LTV you typed, and real lenders cap combined LTV anywhere from roughly 80% to 90% and add their own credit, income, and appraisal rules. Try a more conservative LTV (say 80%) to see a stricter borrowing limit, and remember the payment here is principal and interest only, excluding closing costs, fees, and any homeowners insurance or taxes.
Frequently asked questions
What is max LTV and why does it matter?
Loan-to-value (LTV) is the share of your home's value a lender will let your total mortgage debt reach. At 85% LTV on a $400,000 home, total debt can hit $340,000; subtract your existing balance to find borrowable equity. Most home equity lenders cap combined LTV around 80-90%.
How is the home equity loan payment calculated?
A home equity loan is a fixed-rate, fully amortized loan. The payment uses M = P*r/(1-(1+r)^-n), where P is the loan amount, r is the monthly rate (annual rate / 12), and n is the number of months (years x 12). Each payment covers interest plus principal until the balance reaches zero.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
What's the difference between a home equity loan and a HELOC?
A home equity loan is a one-time lump sum repaid at a fixed rate over a set term, so the payment stays the same. A HELOC is a revolving line of credit you draw from as needed, usually with a variable rate and an interest-only draw period before repayment begins.
How much equity do I need to qualify for a home equity loan?
Lenders typically want you to keep some equity after borrowing, often capping combined loan-to-value around 80 to 90 percent. That means your existing mortgage plus the new loan generally cannot exceed that share of your home's appraised value.
Is interest on a home equity loan tax deductible?
Under current U.S. rules, interest may be deductible only when the loan proceeds are used to buy, build, or substantially improve the home that secures the loan, subject to overall mortgage debt limits. Rules change and depend on your situation, so confirm with a tax professional.
Does taking a home equity loan affect my existing mortgage?
No, it does not change the rate or terms of your first mortgage. A home equity loan is a separate second lien on the same property, so you make two payments and the home secures both loans.
What happens if I can't repay a home equity loan?
Because the loan is secured by your home, missed payments can lead to default and, ultimately, foreclosure since the property is collateral. The first-mortgage lender is generally paid before the home equity lender in that event.
Can I pay off a home equity loan early?
Many home equity loans allow early or extra payments, which reduces the total interest you pay. Some lenders charge a prepayment penalty, so check the loan agreement before making large additional payments.
How does the loan term affect my total interest?
A longer term lowers the monthly payment but spreads interest over more years, increasing the total interest paid. A shorter term raises the monthly payment but reduces overall interest and total cost.
Are closing costs included in this calculator's total cost?
No, the total cost shown reflects only principal plus interest over the term. Real home equity loans can add closing costs, appraisal fees, or origination fees that this estimate does not include.
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