Home Equity Loan Calculator
Estimate home-equity borrowing capacity, combined LTV, fixed monthly payment, interest, and fees.
Content updated August 3, 2026
Closed-end, fixed-rate scenario only. Home value, lender limits, fees, approval, taxes, insurance, existing-loan payments, and actual terms can differ. Borrowing is secured by the home and missed payments can put the property at risk.
A home equity loan is closed-end credit secured by a home: the borrower receives a lump sum and repays it on a schedule. This calculator combines a fixed-rate monthly payment with an equity and combined loan-to-value scenario so the requested amount is not viewed in isolation.
Enter your own maximum combined LTV percentage instead of assuming one lender rule. The result compares the requested loan with that scenario ceiling, then separately shows principal-and-interest payments and the entered upfront costs.
The Home Equity Loan formula
Available = max(0, value × max CLTV − existing liens); combined LTV = (existing liens + new loan) ÷ value; payment = P·r ÷ [1−(1+r)⁻ⁿ]P = new lump-sum loan · r = nominal annual rate ÷ 12 · n = whole monthly payments · fees are added to total scheduled payments but not financed.
Worked example
For a $500,000 home, $300,000 in existing liens, an entered 80% combined-LTV ceiling, and a $75,000 loan, modeled borrowing available is $100,000 and combined LTV after the loan is 75%. At 8% for 15 years, principal and interest are about $716.74 per month.
Assumptions, rounding, and limitations
Assumptions
- Home value and every balance use the selected currency and are measured at the same point in time.
- The entered maximum combined LTV is a user-controlled scenario input, not a universal lender limit.
- The new loan is a fully amortizing lump sum with one fixed nominal annual rate and equal monthly principal-and-interest payments.
- Entered upfront fees are paid separately and are added to modeled total cost without being financed.
- Existing liens affect equity and combined LTV but their payments, rates, and costs are not modeled.
Rounding: Calculations retain floating-point precision through the full monthly schedule. Currency displays use up to two decimal places and combined LTV uses two decimal places; the last modeled payment uses the exact remaining balance.
Limitations
- Supports money inputs up to 1 trillion, rates from 0% to 100%, combined LTV above 0% through 100%, and terms of 1–1,200 whole months.
- Does not model appraisal changes, underwriting, credit scores, debt-to-income, lien priority, variable rates, taxes, insurance, escrow, points, financed fees, prepayment, default, foreclosure costs, or APR.
- The estimate is educational and is not a loan offer, property valuation, approval prediction, tax conclusion, or individualized financial or legal advice. The home secures the debt.
Sources
- What is a home equity loan? — Consumer Financial Protection Bureau
- What is the difference between a Home Equity Loan and a HELOC? — Consumer Financial Protection Bureau
- How does paying down a mortgage work? — Consumer Financial Protection Bureau
Equity, borrowing capacity, and combined LTV
Current home equity is estimated home value minus existing mortgage and lien balances. The modeled maximum secured debt is home value multiplied by the combined-LTV ceiling you enter; subtracting existing liens gives the modeled amount still available to borrow, never less than zero.
Combined LTV after the new loan is existing liens plus the requested loan, divided by home value. This arithmetic does not predict an appraisal, approval, rate, credit limit, or underwriting decision.
Fixed payment and cost scope
The payment uses monthly amortization of the requested lump sum at one fixed nominal annual rate over a whole number of months. Each payment covers that month's interest and reduces principal so the modeled balance reaches zero at the end of the term.
CFPB guidance says home equity loans usually have fixed rates and may have upfront fees and costs. The calculator adds entered fees to scheduled principal-and-interest payments for a broader cost view, but does not finance those fees or calculate APR.
Frequently asked questions
▶What is combined loan-to-value?
In this calculator it is existing mortgage and lien balances plus the requested home equity loan, divided by the estimated home value.
▶Is the modeled borrowing available an approval estimate?
No. It applies only the home value, existing liens, and maximum combined-LTV percentage you entered. Lenders can use different appraisals, limits, credit criteria, and terms.
▶Does the monthly payment include my first mortgage?
No. It is principal and interest for the new home equity loan only. Existing mortgage payments, property taxes, insurance, and other costs are excluded.
▶How are upfront fees handled?
They are added to the total scheduled payments for a simple total-cost figure. They are not added to the loan balance or used to calculate APR.
▶What if the requested amount exceeds the entered CLTV ceiling?
The payment math is still shown as a scenario, but an announced warning explains that the amount is above the ceiling you selected.
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Open calculator →Disclaimer: Home Equity Loan Calculator results are estimates for general information and education only, and are not financial, tax, legal or medical advice. Verify important decisions with a qualified professional.