Home Equity Loan Calculator
See how much you could borrow against your home's equity, and the monthly payment.
About the Home Equity Loan Calculator
Enter your home's value, what you still owe and the lender's maximum combined loan-to-value. The calculator shows the most you could borrow, then the monthly payment and interest for the amount you want.
A home equity loan (a second mortgage) pays a lump sum at a fixed rate, repaid in equal instalments. Lenders usually cap combined borrowing at 80–90% of the home's value.
The formula
Max loan = home value × max CLTV − existing mortgage
- max CLTV
- the lender's limit on all loans secured on the home, as a % of its value
Worked example
Home worth 450,000 with 250,000 owed; lender allows 85% CLTV
- 450,000 × 85% = 382,500 of total borrowing
- Max new loan = 382,500 − 250,000 = 132,500
- Borrowing 50,000 at 8% over 15 years: 477.83 a month, 36,009 in interest
Things to keep in mind
- Your home secures the loan and can be repossessed if you don't keep up repayments.
- Closing costs and fees are not included.
Questions people ask
Home equity loan or HELOC?
A loan suits a one-off cost at a fixed rate; a HELOC suits ongoing, variable needs.
What can I use it for?
Anything, but your home secures the debt.
Is the interest tax-deductible?
In the US, only when the money is used to buy, build or substantially improve the home, within limits.
Sources
The rules and rates this calculator uses come from the official pages below. Its results are estimates, not an official determination, and rules change, so check the latest figures there before you act on them.