Home Equity Loan Calculator | Estimate Payments
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Free financial planning tool

Home Equity Loan Calculator

Estimate how much equity you may be able to borrow, calculate your monthly loan payment, and understand the total cost before applying.

Available equity estimate Monthly payment calculation Interest and cost breakdown

Calculate Your Home Equity Loan

Enter your property, mortgage, and loan information.

Ready to calculate
Property and mortgage details
85%
Many lenders limit total borrowing to a percentage of the property's value.
New loan details
APR
Estimated Monthly Payment
$727.78
Principal and interest estimate based on the selected loan amount, rate, and repayment term.
Total Home Equity
$180,000 Home value minus mortgage balance
Maximum Available
$120,000 Based on selected maximum CLTV
New Combined LTV
73.75% Mortgage and new loan against value
Net Loan Proceeds
$72,500 Loan amount minus estimated costs

Estimated Loan Cost

Desired loan amount $75,000
Total of monthly payments $131,000.40
Total interest paid $56,000.40
Closing costs $2,500
Total borrowing cost $58,500.40

What Is a Home Equity Loan Calculator?

A Home Equity Loan Calculator helps you estimate how much of your property's equity may be available for borrowing. It also calculates the expected monthly payment, total interest, combined loan-to-value ratio, and estimated net proceeds.

Home equity is generally the difference between your property's current market value and the remaining balance on your mortgage. However, lenders usually do not allow homeowners to borrow all their available equity.

What this calculator estimates

The calculator first measures your total equity. It then applies the maximum combined loan-to-value limit you select to estimate the maximum additional amount you may be able to borrow.

It also uses a standard fixed-rate installment loan formula to estimate the monthly principal and interest payment for your desired home equity loan.

Simple process

How to Use the Home Equity Loan Calculator

Follow these steps to estimate your borrowing capacity and potential monthly payment.

1

Enter Your Home Value

Add a realistic estimate of your property's current market value. A lender may later require a professional appraisal.

2

Add Your Mortgage Balance

Enter the current unpaid principal balance on your first mortgage and any existing loans secured by the property.

3

Choose Loan Details

Enter the amount you want to borrow, the expected interest rate, loan term, and estimated closing costs.

4

Review the Results

Compare your desired loan with available equity, then review the payment, interest, CLTV, and net proceeds.

Important factors

What Affects Home Equity Loan Approval?

Available equity is important, but lenders normally evaluate several additional financial factors.

Combined Loan-to-Value

CLTV compares your existing mortgage and proposed equity loan against your home's value. A lower ratio generally means more equity remains in the property.

Credit Profile

Credit history and credit score may affect approval, available interest rates, fees, and the maximum amount a lender is willing to offer.

Debt-to-Income Ratio

Lenders may compare your monthly debt payments with gross monthly income to determine whether the new payment is affordable.

Income Stability

Reliable income and employment history can help demonstrate that you have the financial capacity to repay the new loan.

Property Appraisal

An appraisal may be required to verify the home's value. A lower appraisal can reduce the amount of equity available to borrow.

Loan Fees and Costs

Origination charges, appraisal fees, title costs, and other expenses can reduce the amount of cash you receive from the loan.

Compare your options

Home Equity Loan vs. HELOC

Both options use home equity, but their payment structures and borrowing methods are different.

Feature Home Equity Loan HELOC
How funds are received Usually one lump-sum payment Borrow as needed from a credit line
Interest rate Often fixed Often variable
Monthly payment Usually predictable May change as rates or balances change
Best suited for Large planned expense with a known cost Ongoing or uncertain expenses
Repayment structure Regular principal and interest payments Draw period followed by repayment period
Property risk Home secures the loan Home secures the credit line
Questions answered

Frequently Asked Questions

Learn more about equity, borrowing limits, monthly payments, and home-secured financing.

The amount depends on your home's value, existing mortgage balance, lender CLTV limit, credit profile, income, and other underwriting requirements. This calculator estimates borrowing capacity using the CLTV percentage you select.

First, multiply the current home value by the lender's maximum CLTV percentage. Then subtract the current mortgage balance. The remaining amount is an estimate of the additional secured borrowing available.

No. The monthly payment result estimates principal and interest for the new home equity loan. It does not include property taxes, homeowners insurance, mortgage payments, or other household expenses.

Combined loan-to-value, or CLTV, is the total balance of loans secured by the property divided by its current value. It includes the first mortgage and the proposed home equity loan.

Yes. A home equity loan is commonly taken in addition to an existing first mortgage. The lender evaluates both balances when calculating the combined loan-to-value ratio.

Many home equity loans use a fixed interest rate and fixed monthly payment. However, terms vary by lender, so borrowers should review the rate, APR, fees, repayment period, and prepayment conditions.

You may need to request a smaller loan, obtain a higher appraisal, reduce existing secured debt, or find a lender with different eligibility requirements. Approval is never guaranteed by a calculator result.

Yes. Your home serves as collateral. Missing required payments can create serious financial consequences, including the possibility of foreclosure, so affordability should be evaluated carefully.

Financial disclaimer: This calculator provides estimates for educational and planning purposes only. It is not a loan offer, appraisal, approval decision, financial advice, tax advice, or legal advice. Actual rates, fees, payments, and borrowing limits may differ by lender and borrower.