Home Equity Loan Calculator
Calculate your monthly payment and total interest for a home equity loan or HELOC.
How It Works
Equity = Home Value − Mortgage Balance. Most lenders allow up to 80–85% combined LTV.
Max Equity Loan = (Home Value × 0.85) − Mortgage Balance
- Interest is often tax-deductible (when used for home improvements)
- Fixed rates provide payment stability
- Your home is collateral — missing payments risks foreclosure
FAQs
A home equity loan lets you borrow against the equity in your home (home value minus what you owe). You receive a lump sum at a fixed interest rate with set monthly payments.
Most lenders allow you to borrow up to 80–85% of your home's value minus your existing mortgage balance. For example, a $400K home with a $250K mortgage has ~$90K in borrowable equity at 85% LTV.
A home equity loan gives you a fixed lump sum at a fixed rate. A HELOC (Home Equity Line of Credit) works like a credit card — you draw as needed at a variable rate, making it more flexible but less predictable.