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Home Equity Loan Calculator
How much of your home's value can you actually tap? This home equity loan calculator applies a lender's CLTV cap to find your borrowing limit, then shows the fixed-rate monthly payment, total interest and full payoff schedule for the amount you choose.
See how this works on a $100,000 lump-sum loan — 3 real examples
Available to borrow at 85% CLTV
$0
Monthly payment on $100,000 at 8.5% for 15 years
$0
Total interest
$0
Total repaid
$0
CLTV with this loan
0%
How your home’s value splits
One payment, month by month
- Interest—
- Principal—
Second-mortgage payoff over time
Year-by-year amortizationPrincipal, interest & balance by year
| Year | Principal paid | Interest paid | End balance |
|---|
How your home equity loan payment is calculated
Your borrowing power comes straight from the combined loan-to-value cap:
Available equity = Home value × CLTV limit − Mortgage balance
The fixed monthly payment on the amount you borrow uses the standard amortizing-loan formula:
M = P · r(1 + r)n / ((1 + r)n − 1) Total interest = M · n − P
where P is the loan amount, r the annual rate divided by 12, and n the term in months (at a 0% rate the payment is simply P / n). The CLTV shown is (mortgage balance + loan amount) ÷ home value. Assumptions worth knowing: the rate is fixed and the loan fully amortizes with no balloon; closing costs are not deducted from your proceeds; and the home value is whatever you enter — we don’t apply an automated valuation. If your requested amount exceeds the CLTV cap, we still compute the payment and flag the overage instead of silently capping it, so you can see exactly what a lender would object to.
The same $100,000, three repayment clocks
One lump sum, one fixed rate, one payment from day one — the only question left is how long the meter runs.
Paid off in ten years
per month, fixed$1,239.86
- The payment is fixed at $1,239.86 from the first month to the last — no draw phase, no later surprise.
- Interest over the decade comes to $48,783, the smallest of the three.
- Against the 15-year plan, $255.12 more a month buys $28,470 less interest.
The heaviest monthly load, and the lender’s share stays under half of what the 20-year pays.
Load this example (opens in a new tab)The 15-year middle
per month, fixed$984.74
- A $984.74 payment that never moves — the number signed for is the number paid in year fifteen.
- Total interest lands at $77,253 on the $100,000 borrowed.
- The $450,000 home with $250,000 owed leaves $132,500 available under an 85% cap; this uses $100,000 of it.
Certainty is the product: one rate, one payment, one payoff date, fixed at signing.
Load this example (opens in a new tab)Stretched to twenty
per month, fixed$867.82
- The lightest payment, $867.82, runs $116.92 under the 15-year plan every month.
- Those five extra years collect $31,025 more interest — $108,278 in all.
- Repaying $100,000 ends up moving $208,278 across the table.
Stretch far enough and the interest outgrows the $100,000 it was charged on.
Load this example (opens in a new tab)Illustrations only, not financial advice. Your own rate, taxes and insurance will differ — check with a qualified financial advisor before acting on any of this.
Home equity loans, in plain English
- The CLTV cap sets your ceiling. Multiply home value by the cap (usually 80–85%) and subtract your mortgage balance — that’s the most you can borrow.
- A HELOAN is a fixed lump sum. Level payments at a fixed rate, unlike a HELOC’s variable, revolving line — better for one-time, known costs like a renovation or debt payoff.
- Second mortgages price higher. Rates run one to two points above first mortgages — roughly 8–9% for strong credit in 2026 — plus 2–5% closing costs.
- Term is the biggest lever. Terms run 5 to 30 years; shortening from 15 to 10 years raises the payment but can cut total interest by nearly a third.
- Your house is the collateral. Missed payments can end in foreclosure, so match the term to what you’re financing and compare at least three lenders.
Related calculators
Frequently asked questions
How much can I borrow with a home equity loan?
Multiply your home’s value by the lender’s CLTV cap (usually 80–90%) and subtract your current mortgage balance. On a $450,000 home with a $250,000 balance, an 85% cap allows $382,500 − $250,000 = $132,500. Lenders also verify income and credit, and most set minimum loan amounts of $10,000–$25,000. This calculator estimates your ceiling instantly, with no personal information required.
How is home equity calculated?
Home equity is your home’s current market value minus every loan secured by it. A $450,000 home carrying a $250,000 mortgage has $200,000 of equity. You can typically borrow only the portion above the 10–20% stake lenders require you to keep in the home.
What is a good combined loan-to-value ratio?
Below 80% CLTV gets you the widest lender choice and the best pricing. Most lenders cap home equity loans at 80–85% CLTV, and only a few stretch to 90% for strong-credit borrowers — expect a noticeably higher rate near the top of that range.
What is the difference between a home equity loan and a HELOC?
A home equity loan is a lump sum at a fixed rate with equal monthly payments — exactly what this calculator models. A HELOC is a revolving credit line with a variable rate: you draw as needed, often paying interest only for the first 10 years, then repay principal. Weighing a HELOC vs a home equity loan really comes down to whether your costs are one-time and known or staged and uncertain.
Is home equity loan interest tax-deductible?
Only when the proceeds buy, build, or substantially improve the home that secures the loan, and only if you itemize deductions. Using the money for debt consolidation, tuition, or a car does not qualify under current IRS rules. Confirm your situation with a tax professional.
What credit score do I need for a home equity loan?
Most lenders want at least 620–680, and advertised rates generally assume 740 or better. Below roughly 700, expect an offer 0.5–1.5 percentage points higher — try that in the rate field above to see exactly what it does to your payment and total interest.
Do home equity loans have closing costs?
Yes — typically 2–5% of the loan amount, covering appraisal, title, origination, and recording fees. Many lenders offer “no-closing-cost” loans at a slightly higher rate; that trade usually favors borrowers who plan to repay within a few years.
Disclaimer: these calculators are educational tools, not financial advice. They model your inputs with published formulas, but they cannot know your full situation — for decisions with real stakes, talk to a qualified professional. Formulas and defaults last reviewed .