InputsLive
Loan amount
$
Interest rate
%
Term
yrs
Result
Monthly payment
$619.93
Total interest: $24,391.41 · 10 year term
Monthly payment$619.93
Total interest$24,391.41
Total payments$74,391.41
Loan amount$50,000

Your home is collateral. Consult a licensed lender and tax advisor before borrowing against home equity.

Results are estimates. Consult a professional.

How it's calculated

How the home equity loan calculator works

A home equity loan (HELOAN) is a fixed-rate, fixed-term second mortgage. You borrow a lump sum against the equity in your home and repay it in equal monthly installments over the loan term. Unlike a HELOC, the rate never changes and the payment is predictable from day one.

Monthly payment = P × r × (1 + r)^n ÷ ((1 + r)^n 1)
where P = loan principal, r = monthly rate (annual rate ÷ 12), n = months
Available equity ≈ home value × 80% LTV first mortgage balance
(lenders typically allow combined LTV up to 80%–85%)

The combined loan-to-value ratio (CLTV) is the key underwriting number: first mortgage + HELOAN balance divided by the home's appraised value. Keep CLTV at or below 80% and you will qualify with most lenders at competitive rates.

CFPB — What you should know about home equity loans and home equity lines of credit.
Example

Worked example: $100k HELOAN at 8.5% over 15 years

Example: $500k home, $300k first mortgage, $100k HELOAN at 8.5% / 15 yr

Your home is appraised at $500,000. Your first mortgage balance is $300,000. At 80% LTV the lender will advance up to $400,000 in total debt. Subtracting the first mortgage leaves $100,000 of available equity. You borrow the full $100,000 at 8.5% for 15 years.

Available equity = $500,000 × 80% $300,000 = $100,000
r = 8.5% ÷ 12 = 0.7083% per month
n = 15 × 12 = 180 months
Payment = $100,000 × 0.007083 × (1.007083)^180 ÷ ((1.007083)^180 1) ≈ $985/month
Total paid = $985 × 180 = $177,300 → Total interest = $77,300
$985/month — fixed for 15 years
At $985 a month you know your exact payment for the full 15-year term. Total interest over the life of the loan is $77,300. Compare that to the cost of a personal loan at 12–18% for the same amount — the home equity loan is significantly cheaper, but it does put your home at risk.
Quick reference

Monthly payments by loan amount and rate (15-year term)

The table shows estimated monthly payments for four common home equity loan amounts at three rates over a 15-year term — the most popular HELOAN term. Shorter terms lower total interest; longer terms lower the monthly payment.

Loan Amount7.5% / 15 yr8.5% / 15 yr9.5% / 15 yr
$50,000$464/mo$492/mo$522/mo
$75,000$695/mo$739/mo$783/mo
$100,000$927/mo$985/mo$1,044/mo
$150,000$1,390/mo$1,478/mo$1,566/mo

Source: CFPB home equity guide. Payments are principal + interest only; does not include taxes or insurance. Use the calculator above for 10-year or 20-year terms.

Practical tips

Tips for using a home equity loan wisely

A home equity loan is one of the cheapest forms of consumer borrowing — but the collateral is your house. These five habits keep the risk in proportion to the benefit.

  • Use it for value-adding projects. Home improvements, debt consolidation of high-rate balances, and education are the strongest use cases. Spending equity on recurring expenses or vacations means you have borrowed against future home value with no lasting payoff.
  • Compare the 10, 15, and 20-year terms. A 10-year term costs less total interest but raises the monthly payment sharply. Run all three in the calculator and pick the term whose payment fits your budget without being reckless on cost.
  • Lock the rate before the Fed moves. Home equity loan rates are fixed — if rates are trending up, locking now is cheaper than waiting. If rates are trending down, consider a HELOC to benefit from future reductions.
  • Check the CLTV before you apply. If your home has lost value since purchase, your available equity may be much smaller than you expect. Order a comparative market analysis before applying to avoid a declined appraisal.
  • Factor in the closing costs. HELOANs typically carry $500–$2,000 in closing costs. For small loan amounts these fees are proportionally large — below $20,000, a personal loan or 0% APR credit card may be cheaper after fees.
Accuracy & limits

Accuracy and limitations

This calculator computes a standard amortizing payment assuming the stated rate is fixed for the full term and no additional principal payments are made. Actual lender rates depend on your credit score, CLTV, and the prevailing rate environment. The 80% CLTV cap used to estimate available equity is a common lender guideline — your lender may use a different limit. Appraisal values can come in below your expectation, reducing the borrowable equity.

Not financial or tax advice — consult a qualified professional for your situation.

Glossary

Home equity loan terms defined

A fixed-rate, lump-sum second mortgage secured by your home. You receive the full amount at closing and repay it in equal monthly installments.
The ratio of all mortgage balances (first mortgage plus HELOAN) to the home's appraised value. Most lenders cap CLTV at 80–85%.
A loan secured by the same property as the first mortgage but in a subordinate lien position. If you default, the first mortgage is paid before the HELOAN.
An interest rate that does not change over the life of the loan, making monthly payments predictable from the first payment to the last.
The process of paying off a loan through equal scheduled payments that cover both principal and interest, with the interest share shrinking each month.
The difference between your home's current market value and the total outstanding mortgage debt against it. Equity grows as you pay down the mortgage and as home values rise.
About

About this home equity loan calculator

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Questions

Frequently asked questions about the free home equity loan calculator

A home equity loan calculator is a free online tool that helps you fixed-rate second mortgage against home equity. Lump-sum loan against equity, fixed rate, regular amortization. It runs entirely in your browser with instant results and no sign-up.
No — actual loan terms depend on credit, income docs, and lender underwriting. Use this for planning and what-if scenarios; get a real Loan Estimate before making decisions.
When the calculator asks for them. PITI calculations include property tax, insurance, and PMI; raw P&I calculations don't.
Lenders round payment amounts and may include escrow buffers. Property tax and insurance change over time. Real payments vary 1-5% from these estimates.

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