Home Equity Loan Calculator
Find how much home equity you can borrow at your lender's combined loan-to-value limit, plus the monthly payment and total interest on the amount you want.
Home Equity Loan Calculator: with the default inputs, equity you can borrow is $100,000.
Current appraised or estimated market value.
Everything currently secured by the home (first mortgage plus any existing HELOC).
Lender's cap on total debt ÷ value. 80% is typical; some go to 85–90%.
Fixed rate on the home equity loan.
Value × max CLTV − current mortgage balance.
- Monthly payment on the requested amount
- $492.37
- Total interest
- $38,627
- Total repaid
- $88,627
- Total equity in the home
- $200,000Value minus what you owe — not all of it is borrowable.
- Combined LTV after borrowing
- 70%
- Current LTV
- 60%
Assumptions
- The amount available is value × CLTV cap − current secured debt; lenders may also cap by credit score, income and a maximum dollar amount.
- The loan is a fixed-rate, fully amortizing second mortgage with monthly payments; closing costs are not included.
- The payment is computed on the amount you request even if it exceeds what's available, so you can see the effect of a higher CLTV.
- Mortgage balance$300,00060%
- Borrowable equity$100,00020%
- Equity you must keep$100,00020%
| Max CLTV | You could borrow |
|---|---|
| 80% | $100,000 |
| 85% | $125,000 |
| 90% | $150,000 |
| Year | Principal | Interest | Total paid | Balance |
|---|---|---|---|---|
| 1 | $1,725 | $4,184 | $5,908 | $48,275 |
| 2 | $1,877 | $4,031 | $5,908 | $46,398 |
| 3 | $2,043 | $3,865 | $5,908 | $44,355 |
| 4 | $2,224 | $3,685 | $5,908 | $42,132 |
| 5 | $2,420 | $3,488 | $5,908 | $39,712 |
| 6 | $2,634 | $3,274 | $5,908 | $37,078 |
| 7 | $2,867 | $3,042 | $5,908 | $34,211 |
| 8 | $3,120 | $2,788 | $5,908 | $31,091 |
| 9 | $3,396 | $2,512 | $5,908 | $27,695 |
| 10 | $3,696 | $2,212 | $5,908 | $23,999 |
How this is worked out
The formula
Available equity = home value × max CLTV − mortgage balance Combined LTV after = (mortgage balance + new loan) ÷ home value Payment = L × r(1 + r)^n ÷ ((1 + r)^n − 1), r = rate ÷ 12, n = years × 12
Open How it’s calculated above to see this worked through with your own numbers.
What you enter
- Home value
- Current appraised or estimated market value.in dollars · 0 or more · defaults to 500000
- Mortgage balance
- Everything currently secured by the home (first mortgage plus any existing HELOC).in dollars · 0 or more · defaults to 300000
- Maximum combined LTV
- Lender's cap on total debt ÷ value. 80% is typical; some go to 85–90%.a percentage · from 1 to 100 · defaults to 80
- Amount you want to borrow
- A number.in dollars · 0 or more · defaults to 50000
- Interest rate
- Fixed rate on the home equity loan.a percentage · from 0 to 30 · defaults to 8.5
- Term
- A number.from 1 to 30 · whole numbers only · defaults to 15
What you get back
- Equity you can borrowmain answer
- Value × max CLTV − current mortgage balance.
- Monthly payment on the requested amount
- Total interest
- Total repaid
- Total equity in the home
- Value minus what you owe — not all of it is borrowable.
- Combined LTV after borrowing
- Current LTV
What this assumes
- The amount available is value × CLTV cap − current secured debt; lenders may also cap by credit score, income and a maximum dollar amount.
- The loan is a fixed-rate, fully amortizing second mortgage with monthly payments; closing costs are not included.
- The payment is computed on the amount you request even if it exceeds what's available, so you can see the effect of a higher CLTV.
About this calculator
Equity is the slice of your home you actually own — its value minus what you owe — but lenders won't let you borrow all of it. They cap the total debt secured by the house at a combined loan-to-value (CLTV) ratio, usually 80%, sometimes 85–90%. This calculator applies that cap to find how much you can borrow, then amortizes the amount you want as a fixed-rate home equity loan so you can see the payment and total interest.
Home equity loan vs HELOC
Both are second mortgages secured by your home, and both are limited by the same CLTV math. They differ in how you draw and repay:
- A home equity loan is a lump sum at a fixed rate with level monthly payments over 5–30 years — exactly what this calculator models. Best for a one-time cost with a known price: a renovation bid, debt consolidation, a large purchase.
- A HELOC is a revolving line of credit, usually at a variable rate tied to the prime rate. You draw as needed for about 10 years, paying interest only, then repay over 10–20 years. Best for ongoing or uncertain costs. To approximate a HELOC's repayment phase here, enter the balance you expect to owe at the end of the draw period, the rate you expect then, and the repayment term.
A cash-out refinance is the third option: replace your first mortgage with a bigger one. It makes sense only if the new first-mortgage rate is close to or below your current one.
How to use it
Enter your home's current value (a recent appraisal, or a conservative estimate), the balance on everything already secured by it, and your lender's CLTV limit. Then enter the amount you want, the quoted rate and the term. Use Solve for on the amount to find what fits a target payment.
Reading the results
- Equity you can borrow is the ceiling at the CLTV you set. The table shows how much more an 85% or 90% lender would allow — at a higher rate and often with stricter credit requirements.
- Combined LTV after borrowing is what the lender will underwrite. Above 80%, expect higher rates; above 90%, few options.
- Total interest on a 15-year loan at 8.5% is close to 80% of the amount borrowed — a home equity loan is cheap compared with a card, expensive compared with a first mortgage.
Be careful
The house is collateral. Consolidating unsecured card debt into a home equity loan lowers the rate but converts debt you could walk away from in bankruptcy into debt that can cost you the house. Interest is tax-deductible only when the money is used to buy, build or substantially improve the home that secures it.
Frequently asked questions
▸How much equity can I borrow from my home?
Usually up to 80% of the home's value minus what you owe — sometimes 85–90% with the right lender and credit. On a $500,000 home with a $300,000 mortgage, 80% CLTV allows $100,000.
▸What's the difference between a home equity loan and a HELOC?
A home equity loan is a fixed-rate lump sum repaid in level payments. A HELOC is a variable-rate credit line you draw on as needed, typically interest-only for 10 years and then repaid over 10–20. Same collateral and CLTV limits, different structure.
▸What is combined loan-to-value?
All loans secured by the home — first mortgage plus the new equity loan or HELOC — divided by the home's value. Lenders cap it, most often at 80%.
▸Is home equity loan interest tax deductible?
Only if the loan is used to buy, build or substantially improve the home that secures it, and only if you itemize. Using it to pay off cards or buy a car doesn't qualify.
▸Are home equity loan rates higher than mortgage rates?
Yes, typically by one to three percentage points, because the lender is in second position behind your first mortgage. They're still far below credit-card and most personal-loan rates.
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