Home Equity Loan Calculator
This page runs the HELOC calculator. Set the draw period to 0 years and it works as a home equity loan, a lump sum repaid in fixed monthly payments. Enter your home value, your mortgage balance, the lender's max loan-to-value, the rate, the loan term as the repayment period and the amount you want. The calculator shows your available equity, the most you can borrow, the fixed monthly payment and the total interest.
How to use the Home Equity Loan Calculator
- Enter your numbers in the Home Equity Loan Calculator above.
- Press the Calculate button to see the result.
- To try other numbers, change any value and press the button again.
The home equity loan math
Max loan = (Home value × CLTV) − Current mortgage balance · · · M = P · r(1 + r)^n / ((1 + r)^n − 1)
Enter the combined loan-to-value limit (CLTV) in the Max LTV field. It is the most your lender lets all loans on the home add up to, as a percentage of its value. Subtracting the mortgage balance gives the largest home equity loan. In the payment formula P is the amount borrowed, r is the annual rate divided by 12 and n is the term in months.
Worked example
A $500,000 home with a $300,000 mortgage balance and an 85% limit. 85% of $500,000 is $425,000, so you can borrow up to $125,000. Borrow all of it at 8.5% over 15 years, with the draw period at 0, and the calculator shows a monthly payment of $1,230.92, a last payment of $1,232.46 that takes up the cent rounding, and total interest of $96,567.14.
Frequently asked questions
Is a home equity loan tax-deductible?
Interest is deductible only if used to "buy, build, or substantially improve" the home that secures the loan. Using a HEL for debt consolidation or other purposes generally is not deductible.
Home equity loan vs. HELOC?
Home equity loan = fixed rate, lump sum, fixed monthly payment. HELOC = variable rate, line of credit you draw against, payment varies. HEL for known one-time expenses; HELOC for flexible ongoing access. On this page a draw period of 0 gives the home equity loan, and a draw period above 0 gives a HELOC with interest-only payments first.
What are the risks?
Your home is collateral. Default can lead to foreclosure even if your first mortgage is current. The fixed payment must be sustainable across foreseeable income changes.