Home Equity Loan CalculatorFree online financial calculator — instant results, no sign-up
How much you can borrow against your home and the payment.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Home Equity Loan Calculator
This calculator determines the maximum amount you can borrow through a fixed-rate home equity loan based on your home's current market value, your existing mortgage balance, and a lender's loan-to-value limits. It also projects your fixed monthly repayment, total cost over the loan term, and overall interest charges.
- Home value
- The current estimated market or appraised value of your home in dollars, typically ranging from $50,000 to several million.
- Mortgage balance
- The remaining principal balance owed on your current primary mortgage or any senior liens, in dollars.
- Max combined LTV
- The lender's maximum allowed combined loan-to-value ratio as a percentage, typically between 80% and 90%.
- Rate
- The annual interest rate (APR) for the fixed-rate home equity loan as a percentage, commonly between 5% and 15%.
- Term
- The repayment duration in years, typically ranging from 5 to 30 years.
Formula and method
Max Borrowable: P = (V × CLTV / 100) − B Monthly Payment: M = P × [r(1 + r)^n] / [(1 + r)^n − 1] Total Payments: T = M × n Total Interest: I = T − P
- PMaximum borrowable loan amount (principal)
- VCurrent home market value
- CLTVMaximum combined loan-to-value percentage
- BRemaining mortgage balance
- rMonthly interest rate (annual rate divided by 1,200)
- nTotal number of monthly payments (term in years multiplied by 12)
- MFixed monthly payment
- TTotal amount paid across all monthly payments
- ITotal interest paid over the life of the loan
The tool multiplies your home value by the maximum allowed CLTV percentage and subtracts your current mortgage balance to find the maximum borrowable equity. It then treats this maximum amount as the principal for a standard fixed-rate amortized loan, calculating monthly payments, total payments, and cumulative interest using monthly compounding over the specified term.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Home value450000 $
- Mortgage balance250000 $
- Max combined LTV85 %
- Rate8 %
- Term15 years
Results
- Max borrowable$132,500.00
- Monthly payment$1,266.24
- Total of payments$227,923.02
- Total interest$95,423.02
How to use the Home Equity Loan Calculator
- 1Multiply the home value by the CLTV percentage to establish the total debt allowed across all mortgages on the property.
- 2Subtract your remaining mortgage balance from the total allowed debt to calculate your maximum borrowable loan amount.
- 3Convert the annual interest rate to a monthly rate and the loan term into total monthly periods.
- 4Apply the standard fixed amortization formula to compute your monthly payment, cumulative payments, and lifetime interest.
Reading your result
A higher home value or higher CLTV threshold increases the maximum amount you can extract, but larger balances and longer terms raise lifetime interest costs. If your existing mortgage exceeds the maximum allowed borrowing percentage, the max borrowable result will show as zero or negative, indicating you lack sufficient equity under that lender's criteria.
Limitations
The calculation assumes you borrow the absolute maximum allowable equity on day one at a fixed rate; it does not model smaller partial draws or credit lines (HELOCs). It also excludes closing costs, appraisal fees, title insurance, property taxes, homeowner's insurance, and private mortgage insurance requirements.
Common questions
What does Combined Loan-to-Value (CLTV) mean?+
CLTV measures the percentage of your home's total value that is mortgaged across all loans combined, including your primary mortgage and the new home equity loan. Most traditional lenders cap CLTV at 80% to 85%.
How does a home equity loan differ from a HELOC?+
A home equity loan provides a lump-sum payout with a fixed interest rate and fixed monthly payments over the entire term. A Home Equity Line of Credit (HELOC) functions more like a credit card with an adjustable rate and a revolving draw period.
Can I borrow less than the maximum borrowable amount?+
Yes. The calculator shows the ceiling of what lenders allow based on your CLTV cap, but you can choose to borrow a smaller amount to reduce your monthly payment and interest expense.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
Further reading
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Results are estimates for informational purposes and are not financial, medical or legal advice.