Home Equity Loan Calculator
The payment on a fixed home equity loan, the most your equity allows, and the combined loan-to-value it leaves.
Result
Monthly payment: $463.51
Payment and interest only. Closing costs are added to the total cost, not the payment.
- Most you could borrow at this limit
- $175,000.00
- Combined loan-to-value after borrowing
- 60%
- Total interest
- $33,430.52
- Total cost: interest and closing costs
- $33,430.52
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Results are arithmetic estimates based on the values you enter. Rates, fees and terms are set by your lender or provider, and your actual agreement controls what you pay or receive. Confirm important figures with them or with a qualified adviser. Read the full disclaimer
How to use the Home Equity Loan Calculator
- Enter your home's value, your first mortgage balance and the lender's maximum combined loan-to-value.
- Enter how much you want to borrow, the rate and the term, and any closing costs.
- Read the monthly payment, the most the limit allows and the combined loan-to-value you would be left with.
How it is worked out
most you could borrow = home value × maximum CLTV − first mortgage balancepayment = loan × i ÷ (1 − (1 + i)⁻ⁿ), i = rate ÷ 12CLTV after = (first mortgage + loan) ÷ home valueThe loan is a fixed-rate second mortgage with level monthly payments, worked to the cent in the same way as every loan on this site. Its payment matches the loan payment calculator for the same amount, rate and term.
Combined loan-to-value
The combined loan-to-value is the share of your home’s value that is borrowed against, across every loan. The lower it is, the more equity remains as a cushion against a fall in the home’s value. This page shows the figure after the new loan, so you can see what borrowing leaves. The home equity calculator shows your equity and loan-to-value before you borrow.
Costs not in the payment
Closing costs are added to the total cost but not to the payment. If the lender adds them to the loan instead, enter the larger loan amount. Your home secures the loan, and missing payments can put it at risk.
With your numbers
- Most you could borrow = $500,000.00 × 85% − $250,000.00 = $175,000.00
- Payment = $50,000.00 × i ÷ (1 − (1 + i)^−180) = $463.51
- Combined loan-to-value after = 60%
Quick reference
Payment and interest only. Closing costs are added to the total cost, not the payment.
| Example | Monthly payment |
|---|---|
| USD 50,000 at 7.5% over 15 years | $463.51 |
| USD 50,000 at 7.5% over 10 years | $593.51 |
| USD 175,000 at an 80% limit | $1,622.27 |
| No first mortgage, USD 100,000 | $927.01 |
| USD 30,000 at 8.25% over 20 years | $255.62 |
| USD 80,000 at 7% over 15 years, USD 1,500 closing | $719.06 |
Common questions about the Home Equity Loan Calculator
- How much can I borrow against my home?
- Lenders cap the total of every loan secured on the home at a percentage of its value, the combined loan-to-value. The most you can borrow is that percentage of the value, less what you still owe on the first mortgage. At 85% on a 500,000 home with 250,000 owed, that is 175,000. The limit is the lender’s, so the page asks for it rather than assuming one.
- What if I ask for more than the limit?
- The page still shows the payment, so you can see what the loan would cost, and adds a line saying it is above the most that limit allows. A lender would not make that loan at that limit.
- Home equity loan or HELOC?
- A home equity loan is a lump sum at a fixed rate with the same payment from the first month, suited to a single known cost. A HELOC is a credit line, usually at a variable rate, that you draw on as needed, with interest-only payments at first. The HELOC calculator shows that shape.
- Is the interest tax-deductible?
- That depends on what the money is used for and on the tax rules where you live, which change. This page does not model tax. A tax adviser can say whether it applies to you.