Home Equity Loan Calculator

Calculate home equity loan payments and available equity.

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Result

Fill in the fields above, then press Calculate.

The Home Equity Loan Calculator shows how much you can borrow against your home and estimates monthly payments. Use this to evaluate debt consolidation, home improvements, or major purchases while comparing available equity and combined loan-to-value ratios.

Enter your home value, current mortgage balance, desired loan amount, interest rate, and loan term. The calculator shows your available equity, combined LTV ratio, monthly payment, and total interest over the life of the loan.

Examples

$50,000 Home Equity Loan for Renovations

Your home is worth $400,000 and you owe $250,000 on your mortgage. At 85% LTV, your available equity is $90,000. You take a $50,000 home equity loan at 7.5% for 15 years. Your monthly payment is $463, and you pay $33,340 in total interest. Your combined LTV becomes 75% ($300,000 / $400,000).

Debt Consolidation with Home Equity

Your home is valued at $325,000 with a $180,000 mortgage balance. Available equity at 85% LTV is $96,250. You borrow $30,000 at 8.0% for 10 years to consolidate credit card debt that was charging 22% APR. Your monthly payment is $364, saving you roughly $15,000 in interest compared to making minimum payments on the credit cards.

Frequently Asked Questions

What is LTV and why does it matter?
Loan-to-Value (LTV) ratio is the total loan amount divided by the home value. Most lenders require a combined LTV of 85% or less for home equity loans. Higher LTV means more risk and potentially higher rates.
Home equity loan vs HELOC?
A home equity loan provides a lump sum with fixed payments, while a HELOC (Home Equity Line of Credit) works like a credit card with variable rates and a draw period. This calculator models a fixed-rate home equity loan.
Is home equity loan interest tax deductible?
Interest may be deductible if the loan is used to buy, build, or substantially improve the home securing the loan. Consult a tax professional for your specific situation.
Related Calculators
HELOC Calculator
Mortgage Calculator
Refinance Calculator
Amortization Calculator

Quick Tips

  • •Use home equity loans strategically for debt consolidation (paying off high-interest credit cards) or home improvements that increase home value.
  • •Keep your combined LTV below 80% if possible to qualify for better rates and avoid PMI-equivalent costs.
  • •Home equity loan interest may be tax-deductible if used to buy, build, or improve the home. Consult a tax professional.
  • •Compare with HELOC: home equity loans offer fixed payments; HELOCs offer flexibility but variable rates.
  • •Do not borrow more than you can afford to repay; your home is collateral and could be foreclosed if you default.