Home Equity Loan Calculator
Find how much you can borrow against your home equity and calculate the fixed monthly payment for a home equity loan (second mortgage).
How to use the Home Equity Loan Calculator
- Enter your inputs into the Home Equity Loan Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The home equity loan math
Max loan = (Home value × CLTV) − Current mortgage balance · · · M = P · r(1 + r)^n / ((1 + r)^n − 1)
CLTV (Combined Loan-to-Value) is the maximum total mortgage debt as a percentage of home value — typically 80–90%. Subtract your existing mortgage balance to find available equity.
Worked example
A $500,000 home with $300,000 mortgage balance, lender allows 85% CLTV: max combined debt = $425,000, so home equity loan up to $125,000. At 8.5% APR over 15 years: monthly $1,231; total interest $96,580.
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.
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.