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Home Equity Loan Calculator

Determine how much you can borrow against your home's equity and estimate your monthly payments.

Property & Existing Mortgage

Most lenders cap at 80-90% Loan-to-Value.

New Loan Details

Borrowing Power

Gross Home Equity –
Max Borrowable Amount (based on LTV) –

Payment Estimates (on Desired Amount)

Estimated Monthly Payment –
Total Interest Paid –
Total Loan Cost (Principal + Interest) –

Understanding Home Equity Loans

A Home Equity Loan allows you to tap into the wealth you have built up in your property. It is a type of second mortgage where you use your home as collateral to borrow a lump sum of cash. This is different from a Home Equity Line of Credit (HELOC), which usually has variable rates and works more like a credit card.

Home equity loans typically have fixed interest rates and fixed monthly payments for a set term (usually 5 to 30 years), making them a predictable option for funding large expenses like home renovations, consolidating high-interest debt, or covering major medical bills.

How This Calculator Works

This calculator helps you estimate two critical things: how much cash you might be able to access, and what the repayment on a specific loan amount would look like.

The calculation relies on a few key inputs:

  • Current Home Value: The estimated market value of your property today.
  • Current Mortgage Balance: The amount you still owe on your primary mortgage.
  • Lender Max LTV Cap (%): Lenders do not let you borrow 100% of your home's value. They set a combined Loan-to-Value (LTV) limit, typically between 80% and 90%, which includes both your first mortgage and the new home equity loan.
  • New Loan Details: The amount you want to borrow, the expected interest rate, and how many years you want to take to pay it back.

Example Calculation

Let's say your home is appraised at $450,000 and you currently owe $250,000 on your first mortgage. Your lender has an LTV cap of 85%.

  1. Calculate Max Combined Loan Amount: $450,000 (Value) × 0.85 (LTV Cap) = $382,500.
  2. Calculate Max Borrowable Equity: $382,500 (Max Combined) – $250,000 (Existing Mortgage) = $132,500. This is the maximum amount the lender would likely approve for a home equity loan.

If you decided to borrow $50,000 of that available equity at a 7.5% fixed interest rate for a 15-year term, this calculator estimates your monthly payment would be approximately $463.51.

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