A home equity loan calculator helps homeowners estimate available equity, calculate fixed monthly payments, and see total interest costs before borrowing against their home's value.
Home & Loan Details
Most lenders allow 80-85% CLTV
How to Use the Home Equity Loan Calculator
This home equity loan calculator computes your available equity, maximum loan amount, monthly payment, and total interest cost. Home equity loans offer fixed rates and predictable payments, making them ideal for large, one-time expenses like home renovations, debt consolidation, or major purchases.
How Available Equity Is Calculated
Lenders typically allow combined loan-to-value (CLTV) up to 80-85% of your home's appraised value. For example: $450,000 home × 85% = $382,500 maximum combined debt. If you have $280,000 remaining on your mortgage, you can borrow up to $382,500 − $280,000 = $102,500. Your actual current equity is home value minus mortgage balance.
Home Equity Loan vs HELOC
Choose a home equity loan for fixed rate, predictable payments, and a lump sum you need now. Choose a HELOC (home equity line of credit) if you need flexible access to funds over time (like ongoing renovation stages) and can manage variable rate risk. HELOCs often have lower initial rates but are variable and require discipline.
Tips for Getting the Best Rate
Compare at least 3 lenders including your current mortgage servicer, local credit unions, and online lenders. Credit unions often offer lower rates on home equity products. A credit score above 740 and CLTV below 75% typically gets the best rates. Rates are typically 0.5-2% above first mortgage rates.
Frequently Asked Questions
Is this home equity loan calculator free?
Yes, completely free with no signup required. All calculations run locally in your browser.
Is my data private?
Absolutely. All calculations run in your browser — nothing is transmitted to any server.
What is a home equity loan?
A home equity loan (also called a second mortgage or HELOAN) lets you borrow against your home's equity in a lump sum at a fixed interest rate, repaid in equal monthly installments over a set term (typically 5-30 years). Unlike a HELOC, the rate and payment are fixed.
How much can I borrow with a home equity loan?
Most lenders allow combined loan-to-value (CLTV) up to 80-85% of your home's appraised value. To calculate: (Home Value × 0.85) − Current Mortgage Balance = Maximum Loan Amount. For example, a $400,000 home with $200,000 mortgage balance could support up to $140,000 in a home equity loan.
What are home equity loan rates?
Home equity loan rates are typically 0.5-2% higher than first mortgage rates. As of 2026, rates range roughly from 7-10% depending on credit score, LTV, and lender. Rates are fixed for the life of the loan, unlike HELOCs which are variable. Always compare at least 3 lenders.
Is a home equity loan the same as a HELOC?
No. A home equity loan gives you a lump sum at a fixed rate. A HELOC is a revolving credit line (like a credit card) at a variable rate. Home equity loans work better for large one-time expenses (renovation, debt consolidation). HELOCs work better for ongoing expenses or when you're unsure how much you'll need.