Home Equity Loan Calculator
Calculate how much equity you can borrow at a given loan-to-value limit and the fixed monthly payment, total interest, and total cost of a home equity loan.
Independently verified for accuracy
Calculator by Toolsloft ↗- Available equity
- $90,000.00
- Monthly payment
- $477.83
- Total interest
- $36,008.69
- Total paid
- $86,008.69
This calculator shows how much equity you can borrow against and what the fixed payment on a home equity loan would be. Enter your home value, current mortgage balance, and a lender loan-to-value limit to see your borrowing room, then size the monthly payment.
How this is calculated
Available equity is the home value times the lender LTV limit, minus your current mortgage balance. The payment uses the standard amortizing-loan formula on the amount you request, at the given fixed rate over the term in months.
How to use
- Enter your home value and current mortgage balance.
- Enter the lender maximum loan-to-value, then the loan amount, rate, and term.
- Read your available equity and the monthly payment, total interest, and total paid.
Examples
- $400k home, $250k owed, 85% LTV:
$90,000 available - $50k loan at 8% for 15 yr:
$477.83/mo
FAQ
- How much equity can I borrow?
- Lenders cap the combined loan-to-value, often around 80% to 85%. Multiply your home value by that limit and subtract your current mortgage balance to find your borrowing room.
- How is a home equity loan different from a HELOC?
- A home equity loan is a lump sum with a fixed rate and fixed payment, which is what this tool models. A HELOC is a revolving line with a variable rate and a draw period.
- Is the interest tax deductible?
- Interest may be deductible when the funds are used to buy, build, or substantially improve the home that secures the loan. Check current IRS rules and your own situation.