Free to Use

Home Equity Loan Calculator

How much equity can you borrow from your home? Calculate available equity, maximum loan amounts, monthly payments, and LTV/CLTV ratios. Compare home equity loans vs HELOCs to make the best borrowing decision for your needs.

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Available Equity
$0
Home value minus mortgage
Max Loan Amount
$0
At selected CLTV limit
Monthly Payment
$0
For desired loan amount
Total Interest
$0
Over full loan term
LTV Ratio
0%
Loan-to-value (current)
CLTV Ratio
0%
Combined (with this loan)

How Home Equity Loans Work

Calculate Your Available Equity

Your home equity is the difference between your home's current market value and what you owe on your mortgage. For example, a $400,000 home with a $250,000 mortgage has $150,000 in available equity.

Determine Maximum Borrowing Amount

Lenders typically let you borrow up to 80-90% of your home's value combined with your existing mortgage (CLTV). Enter your CLTV limit to see the maximum loan you can qualify for based on your equity.

Set Your Desired Loan Amount

Choose how much you want to borrow within your available limit. Your desired loan amount will be used to calculate your estimated monthly payment and total interest over the loan term.

Review Monthly Payments

Based on the loan amount, APR, and term, we calculate your estimated monthly payment using standard amortization. Higher rates or shorter terms mean higher payments but less total interest.

Compare with HELOC

Use our comparison feature to see how a home equity loan stacks up against a HELOC. Fixed-rate vs variable-rate, predictable payments vs flexible access — find the right fit.

Home Equity Loan vs HELOC Comparison

🏠 Home Equity Loan
Monthly Payment
$0
Total Interest
$0
💳 HELOC (Variable Rate)
$0
$0

Calculator Features

🏠
Equity Analysis
Instantly calculate your available home equity based on current market value and mortgage balance.
📊
LTV & CLTV Ratios
Understand your current loan-to-value ratio and how a new loan affects your combined LTV position.
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Payment Estimates
Get accurate monthly payment and total interest estimates using standard amortization formulas.
⚖️
HEL vs HELOC
Compare fixed-rate home equity loans against variable-rate HELOCs side by side with detailed cost breakdowns.
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CLTV Limit Tuning
Adjust CLTV limits from 80% to 90% to see how different lender requirements affect your borrowing capacity.
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Mobile Optimized
Calculate home equity on any device with our fully responsive design for phones, tablets, and desktops.

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More from Finance

What Is a Home Equity Loan?

A home equity loan, often called a second mortgage, allows you to borrow against the equity you've built in your home. Equity is the portion of your property you actually own — the difference between your home's current market value and your outstanding mortgage balance.

Home equity loans provide a lump sum of cash with a fixed interest rate and fixed monthly payments over a set term (typically 5 to 30 years). Because your home serves as collateral, interest rates are generally lower than unsecured loans like personal loans or credit cards.

How Much Can You Borrow?

Most lenders allow you to borrow up to 80-90% of your home's appraised value, minus your existing mortgage balance. This is known as your combined loan-to-value (CLTV) ratio. For example, if your home is worth $400,000 and you owe $250,000, with a 90% CLTV limit, you could borrow up to $110,000.

Common Uses for Home Equity Loans

  • 🏠 Home Improvements & RenovationsIncrease your property value by funding kitchen remodels, bathroom upgrades, roof replacements, or additions.
  • 🎓 Education ExpensesFinance college tuition, graduate school, or continuing education programs at lower rates than student loans.
  • 💳 Debt ConsolidationPay off high-interest credit cards and personal loans with a single lower-interest home equity loan payment.
  • 🚗 Major PurchasesFund large expenses like vehicles, medical bills, or wedding costs with predictable fixed payments.
  • 💰 Emergency FundEstablish a financial safety net for unexpected expenses, medical emergencies, or income gaps.
  • Home Equity Loan vs HELOC

    Both home equity loans and HELOCs (Home Equity Lines of Credit) let you borrow against your home's equity, but they work very differently. Understanding these differences is crucial to choosing the right product for your needs.

    Key Differences

  • 💰 Loan StructureHome Equity Loan: Lump sum disbursed upfront with fixed monthly payments. HELOC: Revolving credit line you can draw from as needed, like a credit card secured by your home.
  • 📊 Interest RatesHome Equity Loan: Fixed rate for the entire term — predictable payments that never change. HELOC: Variable rate tied to the prime rate — payments can increase or decrease over time.
  • 📅 Payment StructureHome Equity Loan: Fully amortizing payments (principal + interest) from day one. HELOC: Interest-only payments during the draw period (typically 5-10 years), then full amortization during repayment.
  • 🎯 Best ForHome Equity Loan: One-time expenses like renovations, debt consolidation, or large purchases where you need a set amount. HELOC: Ongoing or unpredictable expenses like home improvement projects in phases, education costs, or emergency funds.
  • ⚖️ Risk LevelHome Equity Loan: Lower risk due to fixed rates and predictable payments. HELOC: Higher risk — variable rates can rise significantly, and payments can increase substantially during the repayment period.
  • How to Use Home Equity Wisely

    Assess Your Financial Situation

    Before borrowing, evaluate your income stability, existing debt obligations, and credit score. Lenders typically require a credit score of 620+ and a debt-to-income ratio below 43% for home equity loans.

    Calculate Your Available Equity

    Use this calculator to determine your equity position. Enter your home's current market value (not what you paid) and your mortgage balance. Remember that home values fluctuate based on market conditions.

    Shop Multiple Lenders

    Compare rates, closing costs, and terms from at least 3-5 lenders. Even a 0.5% difference in APR can save thousands over the life of the loan. Consider credit unions, online lenders, and traditional banks.

    Understand All Costs

    Home equity loans have closing costs similar to a first mortgage: appraisal fees ($$300-500), origination fees (0.5-1% of loan), title search, and recording fees. Some lenders offer no-closing-cost options but typically charge higher rates.

    Have a Repayment Plan

    Ensure your budget can accommodate the new monthly payment. Defaulting on a home equity loan puts your home at risk of foreclosure. Build an emergency fund of 3-6 months of expenses before taking on additional debt secured by your home.

    Frequently Asked Questions (FAQ)

    How much equity can I borrow from my home?
    Most lenders allow you to borrow up to 80-90% of your home's value combined with your existing mortgage (CLTV ratio). For example, with a $400,000 home, $250,000 mortgage, and 90% CLTV limit, you could borrow up to $110,000. Your actual borrowing capacity depends on your credit score, income, and the lender's specific requirements.
    What's the difference between LTV and CLTV?
    LTV (Loan-to-Value) is your current mortgage balance divided by your home's value. If you owe $250,000 on a $400,000 home, your LTV is 62.5%. CLTV (Combined Loan-to-Value) includes your existing mortgage plus the new home equity loan. If you add a $50,000 home equity loan, your CLTV becomes 75%. Lenders use CLTV to assess overall risk.
    Is a home equity loan better than a HELOC?
    It depends on your needs. A home equity loan is better for one-time expenses needing a fixed lump sum with predictable payments. A HELOC is better for ongoing or variable expenses where you want flexible access to funds. Home equity loans have fixed rates; HELOCs have variable rates that can rise. Use our comparison feature to see the cost differences.
    What credit score do I need for a home equity loan?
    Most lenders require a minimum credit score of 620 for home equity loans, though some may require 660-680 for the best rates. A higher credit score typically qualifies you for lower interest rates and better terms. You'll also need a debt-to-income ratio below 43% and sufficient home equity (at least 15-20%).
    Are home equity loan closing costs tax deductible?
    Under the Tax Cuts and Jobs Act, interest on home equity loans is deductible only if the funds are used to "buy, build, or substantially improve" the home that secures the loan. If you use the funds for other purposes like debt consolidation or education, the interest is not tax deductible. Consult a tax professional for your specific situation.
    How long does it take to get a home equity loan?
    The typical home equity loan process takes 2-6 weeks from application to funding. The timeline depends on the lender, appraisal scheduling, and how quickly you provide documentation. Online lenders may close faster (10-14 days), while traditional banks may take 4-6 weeks. Some lenders offer streamlined processes with reduced documentation.

    ⚠️ Financial Disclaimer: This home equity loan calculator is for educational and planning purposes only. Results are estimates based on the inputs provided and do not constitute a guarantee of loan approval, terms, or rates. Using your home as collateral carries serious risk — failure to repay a home equity loan can result in foreclosure. Interest rates, closing costs, and lender requirements vary by institution and market conditions. Consult with qualified financial and tax professionals before making borrowing decisions. All calculations are performed locally in your browser; no financial data is stored or transmitted.