Home Equity Loan Calculator
Enter your home's value, what you still owe and the lender's limit to see how much you could borrow, then the loan amount, rate and term for the payment.
Equity You May Be Able to Borrow
$150,000.00
Monthly Payment
$477.83
Combined Loan-to-Value With This Loan
60%
Total Interest
$36,008.69
Total Paid
$86,008.69
Within the Limit?
Yes: this loan keeps total borrowing within the limit.
How it works
Lenders limit the total of everything secured on your home, the existing mortgage plus the new loan, to a percentage of its value. That percentage is the combined loan-to-value (CLTV) limit. The equity you may be able to borrow is the home's value times that limit, minus what you already owe.
A home equity loan is a lump sum repaid in equal monthly payments over a fixed term, like a second mortgage. The payment uses the same formula as any fixed-rate loan, and the schedule shows how much of each year's payments goes to interest and how much reduces the balance.
The combined loan-to-value with this loan is (what you owe + the new loan) ÷ home value. If it is above the limit you entered, a lender using that limit would offer less than you asked for.
Formula
available equity = home value × max CLTV − mortgage balances owed (not below 0) CLTV with loan = (balances owed + loan) ÷ home value i = annual rate ÷ 12, n = years × 12 payment = loan × i × (1 + i)^n ÷ ((1 + i)^n − 1) total interest = payment × n − loan
Example
A $500,000 home with $250,000 owed and an 80% limit leaves $500,000 × 80% − $250,000 = $150,000 that may be available to borrow.
Borrowing $50,000 at 8% for 15 years costs $477.83 a month. Total interest is $36,008.69, and the combined loan-to-value rises to 60%, within the limit.
Assumptions and limitations
- The 80% maximum combined loan-to-value is a typical lender limit, not a rule; many lenders use 80%–85%, and some go higher or lower. Use your lender's figure.
- Available equity is only the limit. Approval also depends on your credit, income, existing debts and an appraisal, which may value the home differently from your estimate.
- The loan has a fixed rate with equal end-of-month payments. Closing costs, fees and points are not included unless you add them to the loan amount.
- Your existing mortgage payment is not affected and is not shown.
- Results are an estimate for planning, for informational and educational purposes only, and are not financial, tax or legal advice.
Frequently asked questions
What is the difference between a home equity loan and a HELOC?
A home equity loan pays you one lump sum at a fixed rate with a fixed payment. A HELOC is a credit line you draw on as needed, usually at a variable rate, often with interest-only payments for the first years.
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