Home Equity Loan Calculator
Enter the loan, rate and term to see the payment, then check it against your home value.
How to use ↓Result
Homeowner Calculator · Home Equity Loan Calculator · homeowncalculator.com
Estimate only, based on your inputs. It may be inaccurate and is not financial advice. Confirm every figure with your lender before you decide.
Payments are rounded up to the next cent, so they can differ from lender documents by a cent.
How to use
- Enter the loan amount, the fixed rate and the term.
- Enter your home value and your first mortgage balance.
- Set the combined loan-to-value limit you want to test.
- Press Calculate to see the payment and the most you could borrow.
Home equity loan basics
A home equity loan is a lump sum, usually at a fixed rate, repaid in equal monthly payments. It is a second loan secured by your home, on top of your first mortgage.
How much you can borrow depends on your home value, your mortgage balance and the combined loan-to-value limit a lender uses. Enter the limit you were given. The calculator shows the most you could borrow at that limit, rounded down.
Worked example
A $50,000 home equity loan at a fixed 8% for 15 years has a payment of $477.83 a month and $36,008.08 of total interest. On a $450,000 home with $250,000 still owed, the combined loan-to-value is 66.67%.
If a lender's limit were 85%, the most that could be borrowed is $132,500. Example numbers only, not current rates.
Equity is the home value minus what you owe. Your home is collateral for the loan.
FAQ
How is the payment worked out?
The same way as a mortgage payment: a level payment on the loan over its term at the fixed rate, rounded up to the next cent.
What is combined loan-to-value?
Your first mortgage plus this loan, divided by your home value. Lenders set a limit on it.
How is this different from a HELOC?
A home equity loan pays out once with a fixed payment. A HELOC is a line you borrow from, usually at a variable rate. The comparison page shows them side by side.
Does it replace my mortgage?
No. It is a second loan. Your first mortgage and its rate stay as they are.