Home Equity Loan Calculator
Calculate how much you can borrow against your home equity, your monthly payment, and the total loan cost.
Calculate how much you can borrow against your home's equity, your fixed monthly payment, and the total interest over the loan term.
How Home Equity Loan Calculator Works
Your available equity is simply your home's current value minus your outstanding mortgage balance. Lenders don't let you borrow against all of it, though — they cap the combined loan-to-value (CLTV) ratio, typically around 85%, meaning your mortgage balance plus the new home equity loan generally can't exceed about 85% of your home's value.
The maximum you can borrow is therefore Home Value × Max LTV% − Existing Mortgage Balance. If your desired loan amount exceeds this maximum, the calculator caps it at the LTV-based limit, since that's what a lender would actually approve.
Once the approved loan amount is set, it's a standard fixed-rate installment loan — amortized with the usual payment formula over your chosen term, with a fixed monthly payment throughout, unlike a HELOC's variable draw-and-repay structure.
See It In Action
Who Uses Home Equity Loan Calculator and Why
- Checking how much home equity you have available to borrow against before applying for a home equity loan.
- Seeing whether a desired loan amount fits within a lender\'s typical maximum combined loan-to-value limit.
- Estimating the fixed monthly payment and total interest on a home equity loan over different term lengths.
- Deciding between a home equity loan\'s fixed lump sum and a HELOC\'s revolving credit line for a specific borrowing need.
Mistakes to Avoid
- Assuming you can borrow against the full amount of your home\'s equity — lenders cap the combined loan-to-value ratio (typically around 85%), so your true maximum is Home Value × Max LTV% minus your existing mortgage balance, not your full equity figure.
- Requesting a loan amount larger than the LTV-based maximum without checking first — the calculator caps it automatically and flags the warning, but it\'s worth understanding why before assuming a lender would approve your original request.
- Confusing a home equity loan with a HELOC — a home equity loan disburses a lump sum upfront with a fixed rate and fixed payment; a HELOC works like a revolving credit line with a variable rate and a separate draw and repayment structure.
Tips for Best Results
- Check your maximum borrowable amount before shopping for a specific loan size — it depends on both your home\'s current value and your lender\'s specific CLTV policy, which can vary somewhat between lenders.
- If your goal is a one-time expense with a known cost (like a renovation with a fixed quote), a home equity loan\'s fixed payment is often easier to budget around than a HELOC\'s variable draw-period payment.
Fixing Common Problems
The calculator capped my loan amount below what I wanted to borrow. — Your desired amount likely exceeded the maximum combined loan-to-value a lender would typically approve — check the maximum borrowable figure shown, which is based on your home value, existing mortgage balance, and the CLTV cap (commonly around 85%).
Terms Explained
Combined loan-to-value (CLTV): Your total mortgage debt — existing mortgage plus the new home equity loan — divided by your home\'s value; lenders cap this, typically around 85%.
Available equity: Your home\'s current value minus your outstanding mortgage balance.